Small-caps in the red; OREX, IRE, and BRS lead gainers

Small-cap stocks went into free-fall mode into midday trading, pulled down by worries a collapse in the nation’s auto manufacturing business could sweep into a wider problem for an economy already in the throes of recession. In addition, money continues to move out of equities and into credit instruments as investors seek safe-haven outlets to try and ride out this storm. That safe-haven mentality also takes a deeper toll on small caps, which are seen as even riskier than large-cap companies. Today’s small-cap gainers are Orexigen Therapeutics Inc. (Nasdaq:OREX), Bank of Ireland (NYSE:IRE) and Bristow Group (NYSE:BRS). 

Other Market Watch highlights today included:

• While industrial metals such as copper have been pummeled by the economic crisis, gold stands to benefit by panic in financials.  
• The push for safe-haven outlets has extended into the gold market, with global demand for the yellow metal soaring 18% in the 3rd quarter.  
• Yields on benchmark 10-year notes tumbled more than 3.5% at mid-session as investors made a stampede for Treasury products.  
• Small-cap stocks went into free-fall mode into midday trading, pulled down by worries of a collapse in the nation’s auto manufacturing business.

Small Cap Gainers:

• Orexigen Therapeutics Inc. is up 14% without any apparent fresh news behind the move. See ( Nasdaq:OREX).  
• Post Office enters talks with the Bank of Ireland over unlimited guarantee account; IRE shares climb nearly 8%. See (NYSE:IRE).  
• Bristow Group pops up over 7% after announcing preferred dividend. See (NYSE:BRS). 
• Premiere Global Services up 7.5% on heavier-than-average volume. See (NYSE:PGI). 

Small Cap Losers:

• Century Aluminum Co. tumbled 31%, hitting a 52-week low. CENX peaked above $80/share in May – now it's trading below $6. See (Nasdaq:CENX).  
• Liz Claiborne hit a new 52-week low of $2.53 today and is currently down about 20% as the retail sector continues to bruise from the crippled economy. See (NYSE:LIZ).
• GM was down 15% on perceptions that this week’s lobby efforts by auto executives in Washington might not yield a rescue package. See (NYSE:GM).  
• Strategic Hotels & Resorts is down another 13%, continuing its steep decline seen in the past few weeks and making a new 52-week low of $1.10 today in the process. See (NYSE:BEE).

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