Small caps close higher; CYPB, CRYP and JAV lead gainers

Small-cap stocks staged an impressive bullish reversal Thursday, rejecting a morning slide to five-week lows as a rally in retail and chipmaker stocks plotted an afternoon recovery course for stocks in general. Today's small-cap gainers were Cypress Bioscience (Nasdaq:CYPB), CryptoLogic (Nasdaq:CRYP) and Javelin Pharmaceuticals (AMEX:JAV).

Other Market Watch highlights included:

• The weekly claims report came in at 524,000, which was near the projection of 520,000.
• The PPI number was at minus 1.9%, also reasonably close to the consensus guess of minus 2.0%.
• The NY Manufacturing survey was at -22, slightly better than the forecast of -25.
• Talk of another large government money float to embattled banks also played a role in turning the selling tide.
• House Dems released plans for an $825B stimulus plan, the Senate was slated to vote on the $350B in TARP funding this afternoon.
• Even as the market was sinking through midday trading today, retail stocks were hanging tough, suggesting that investors were scouting for buying opportunities.
• Mortgage rates on 30-year fixed loans hit record lows this week and mortgage applications have tripled in less than two months.
• Crude oil prices took another hit today, sinking 5%, or $1.88, a barrel to $35.40.

Small-Cap Gainers:

• Forest Labs and Cypress Bioscience announce FDA approval for Savella; Cypress shares closed up 33%. See (CYPB).
• CryptoLogic closed up 18.3% after reporting that Q4 trading is in line with expectations. See (CRYP).  
• Javelin Pharmaceuticals Inc. rallied 7% on a volume spike amid news that the firm signed a $71 million deal for a European marketing partnership. See (JAV).

Small-Cap Losers:

• Marshall & Ilsley closed down 26% after falling to a Q4 loss of $403.9M, cutting 850 jobs. See (MI).
• Liberty Shipping withdraws offer for International Shipholding Corporation; ISH shares fell 26%. See (ISH).
• Red Robin Gourmet Burgers Inc. closed down 13% and has been sinking fast the last several sessions. See (RRGB). 
  

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