Small caps push higher; TARG, ZGEN and AER lead gainers
Small-cap stocks pushed higher Tuesday, as investors tried to balance ongoing worries about the economy and corporate profits versus hope for fresh stimulus funds. Short-term oversold conditions likely played a supportive role as well. Some of today’s small-cap gainers were Targanta Therapeutics (Nasdaq:TARG), ZymoGenetics (Nasdaq:ZGEN) and Aercap Holdings NV (NYSE:AER).
Other Market Watch highlights today included:
• The market appeared to slip initially, then staged a recovery move during the first speech of the year by Fed Chairman Ben Bernanke.
• Bernanke said this morning that TARP funds should be directed toward toxic mortgage-backed assets, which was news that traders seemed to openly embrace.
• The international trade report showed that the U.S. deficit narrowed by 28.7% in November, which marked the largest contraction in 12 years.
• On the commodities scene, gold climbed and copper reversed a big overnight decline in Asia to trend higher.
• Crude oil prices closed out the day with a modest gain of $0.19 a barrel, which was off the U.S. trading session highs, but still quite a bit better than losses seen in overseas action.
• Gains in energy and other commodities were hampered somewhat today by a strong tone in the U.S. dollar, which rose 1.4% against the euro.
• Looking ahead to Wed., the market will see a ramp up of econ data, with retail sales, import prices and biz inventories out in the morning.
Small Cap Gainers:
• The Medicines Company announced it will acquire Targanta Therapeutics. Targanta shares closed up a whopping 109%. See (Nasdaq:TARG).
• Bristol-Myers to buy ZymoGenetics’ experimental Hepatitis C drug. Shares of ZymoGenetics popped 26%. See (Nasdaq:ZGEN).
• Aercap Holdings NV soared 25% as the Netherlands aviation firm announced various deals for fourth-quarter aircraft purchases and sales. See (NYSE:AER).
Small Cap Losers:
• Prestige Brands lowered guidance; stock slumped over 17% at closing. See (NYSE:PBH).
• The Great Atlantic & Pacific Tea Company closed down 12% on higher-than-average volume after posting a Q3 loss last week. See (NYSE:GAP).
• Liz Claiborne lowered view, inked credit amendment; stock closed down 8%. See (NYSE:LIZ).
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