Small-cap stocks continues low; UGP, GOLD, and GYMB lead gainers
Small-cap stocks are expected to open lower, following yet another decline in stock markets around the world overnight and by a startling rise in unemployment claims in the U.S. Further weakness could be tied to a slide in crude oil prices and further investor flight out of stocks and into credit instruments. It should be noted however, that the market is oversold, Libor rates were lower and Swiss central bankers cut rates, which could help limit early losses. Some of today’s small-cap gainers are Ultrapar Participacoes SA (Nasdaq:UGP), Randgold (Nasdaq:GOLD) and Gymboree (Nasdaq:GYMB).
Other Market Watch highlights today included:
• The chart structure for small caps is awful right now, with the Russell 2000 in freefall mode through support points that date back more than five years.
• Yields on two-year notes hit record lows overnight, and the yield on T-bills is now near the panic lows from October.
• The yield on benchmark 10-year notes was down a stunning 5.2% into the stock market open, reaching the lowest level since June 2003.
• Crude oil prices were off some $3 a barrel into the stock market open, slipping below $50 for first time since January 2007.
Small Cap Gainers:
• Ultrapar Participacoes rose 16% as the fuels distribution and chemical firm rose on light volume buying. See (NYSE:UGP).
• Randgold up 7.4% in pre-market on news that it aims to swallow assets of rivals. See (Nasdaq:GOLD).
• Retail sales lift Gymboree fiscal 3Q profit, analyst upgrades small cap to "overweight" from neutral." Shares climb about 5% in pre-market. See (Nasdaq:GYMB).
• NICE Systems wins $20 million order from an EMEA government agency; shares climb slightly higher in pre-market. See (Nasdaq:NICE).
Small Cap Losers:
• Suntech Power Holdings Co. Ltd. is down 29% on sour earnings news. See (NYSE:STP).
• Woodward Governor Co. lost 27% as the energy solution provider took an earnings lump. See (Nasdaq:WGOV).
• VeriFone Inc. tumbled 26% as the electronic payment firm made a preliminary comment on quarterly results. See (NYSE:PAY).
• Oil and gas exploration company Linn Energy down 3% in pre-market as the majority of stocks in the energy sector are being hurt by falling crude oil prices. See (Nasdaq:LINE).
Other Market Watch highlights today included:
• The chart structure for small caps is awful right now, with the Russell 2000 in freefall mode through support points that date back more than five years.
• Yields on two-year notes hit record lows overnight, and the yield on T-bills is now near the panic lows from October.
• The yield on benchmark 10-year notes was down a stunning 5.2% into the stock market open, reaching the lowest level since June 2003.
• Crude oil prices were off some $3 a barrel into the stock market open, slipping below $50 for first time since January 2007.
Small Cap Gainers:
• Ultrapar Participacoes rose 16% as the fuels distribution and chemical firm rose on light volume buying. See (NYSE:UGP).
• Randgold up 7.4% in pre-market on news that it aims to swallow assets of rivals. See (Nasdaq:GOLD).
• Retail sales lift Gymboree fiscal 3Q profit, analyst upgrades small cap to "overweight" from neutral." Shares climb about 5% in pre-market. See (Nasdaq:GYMB).
• NICE Systems wins $20 million order from an EMEA government agency; shares climb slightly higher in pre-market. See (Nasdaq:NICE).
Small Cap Losers:
• Suntech Power Holdings Co. Ltd. is down 29% on sour earnings news. See (NYSE:STP).
• Woodward Governor Co. lost 27% as the energy solution provider took an earnings lump. See (Nasdaq:WGOV).
• VeriFone Inc. tumbled 26% as the electronic payment firm made a preliminary comment on quarterly results. See (NYSE:PAY).
• Oil and gas exploration company Linn Energy down 3% in pre-market as the majority of stocks in the energy sector are being hurt by falling crude oil prices. See (Nasdaq:LINE).
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