Tag - :BSC

We have a week with no IPOs on the calendar. China Resources Ltd., a SPAC, is listed as pricing during the week of March 31, but was originally supposed to price in February. Because more deals have been pulled than priced this month, let's examine which companies walked away from the public markets — at least for the time being.

MonoSol Rx (www.monosolrx.com, IPO withdrawn March 27)

MonoSol Rx develops thin-film products used for drug delivery. The finished product is similar to the different breath-freshening, cough and cold strips out on the market; in fact, MonoSol makes some of those. Unlike the breath strips, where the taste is the whole point, MonoSol’s film technology encapsulates the drug to mask the taste. This is a huge advantage for foul medications that uncooperative patients have to take by mouth. Two products in development target nausea and Alzheimer’s disease. MonoSol isn’t profitable, though. For the first six months of 2007, it lost $7.6 million on $2.2 million in revenue. The company had planned to offer 4 million shares at a price range of $16 to $18 per share through Cowen & Company.

LifeWatch (www.lifewatchinc.com, IPO withdrawn March 21)

LifeWatch is profitable, but that’s not enough to generate interest these days. The company provides remote cardiac monitoring services. A doctor instructs a patient to wear a monitor to detect cardiac arrhythmias. The data are transmitted via phone to LifeWatch’s call centers, which collect the information to report back to the physician. If a major problem is detected, a LifeWatch rep will call the patient and tell him or her to get medical care. The company is owned by Card Guard AG, a manufacturer of . . .

Recession-shmesession. At least that’s the reaction the market has shown the past few days to the most alarming jobs data this economic cycle has seen. In the face of those dismal economic numbers that signal recession, the market has abandoned its violent volatile swings, giving way to milder reactions leading some to question whether the period of volatility is over.

The VIX, an index that gauges market volatility, has slid to a level of 23 from its peak year-to-date of 32.24 reached on March 17th — the day that Bear Stearns (NYSE:BSC) collapsed.

The technology sector, typically a sector that sees upside in boom times and harsher-than-deserved downside in recessionary times, is showing less volatility. As measured by the VXN, technology volatility was down approximately 8.5% last week, essentially keeping pace with the VIX, which saw a 10% decline over the same period, according to Market Intelligent analyst Chris Jacobson at Susquehanna Financial.

“I don’t think we’re going to see it as volatile as we have,” said Andy Busch, global ethics strategist at BMO Capital Markets. “It’s almost impossible. Basically the market has essentially starred into the abyss and they saw themselves and that was somewhat comforting.”

“I think we had so many down days and most of it has been priced in unless there are major shocks — another firm collapsing, more bad news in the housing and credit markets — I think the economy will start recovering,” said Cem Hocaoglu, head of Quantitative Derivative Strategy at Susquehanna Financial. “Most people already . . .

The Russell 2000 (NYSE:IWM) managed a small rise on news of mixed economic reports. The small-cap index climbed 1.30 points, or 0.18%, to 713.57, its fourth consecutive rise. The Dow Jones Industrial Average added 20.20 points, or 0.16%, to 12,626.03.

On a year-to-date basis, the Russell 2000 has shed 6.85%, while the Dow is down 4.82% and the S&P 500 has retreated 6.75%.

Small-cap stocks spent the morning in negative territory on news before the opening that jobless claims for the week ended March 29 unexpectedly increased 38,000 to 407,000, according to the U.S. Labor Department. That’s the highest level in more than two years and a sign that economic growth has stalled.

The small-cap index recovered and almost touched the flat line at about 10 a.m. ET on news that the U.S. service sector contracted less than expected in March.

But stocks quickly lost their footing again, falling to a session low of nearly 706 at 11 a.m. ET, before beginning a slow climb upward. The bullish sentiment, which . . .

The Russell 2000 (NYSE:IWM) posted a large increase for the second consecutive session on upbeat financial and housing news. The small-cap index advanced 19.86 points, or 2.91%, to 701.28. The Dow Jones Industrial Average (INDU) rose 187.32 points, or 1.52%, to 12,548.64.

On a year-to-date basis, the Russell 2000 has declined 8.45%, while the Dow is down 5.40% and the S&P 500 has lost 8.07%.

Stocks small and large began the day in the green on news before the start of trading that investment bank JPMorgan Chase & Co. (NYSE:JPM) has raised its offer for Bear Stearns (NYSE:BSC) to $10 a share from $2 a share. The move is in response to disgruntled employees at Bear Stearns complaining that the original bid was too low.

The bulls gained strength at 10 a.m. ET, when the National Association of Realtors reported that sales of existing homes rose 2.9% to an annual rate of . . .

The Russell 2000 (NYSE:IWM) is posting big gains as a rally takes hold on Wall Street. At 2:42 p.m. ET, the small-cap index had climbed 22.68 points, or 3.33%, to 704.10. The Dow Jones Industrial Average (INDU) was up 235.43 points, or 1.90%, to 12,596.75.

The bulls are running the show as investors as stocks small and large rally on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has raised its offer for Bear Stearns (NYSE:BSC) to $10 a share from the original bid of $2 a share. JPMorgan has also agreed to guarantee Bear Stearns’ borrowings from the Federal Reserve Bank of New York.

Bear Stearns collapsed under the weight of investments made on securities backed by subprime mortgages.

Speaking of the housing sector, sales of existing homes rose 2.9% in February, the National Association of Realtors reported after the start of trading. Investors took that as a bullish sign because economists were expecting . . .

The Russell 2000 (NYSE:IWM) and the Dow added to their earlier gains on news that existing U.S. home sales rose more than expected in February.

At 11:33 a.m. ET, the small-cap index was up 19.71 points, or 2.89%, to 701.13. The Dow Jones Industrial Average (INDU) had climbed 218.83 points, or 1.77%, to 12,580.15.

Sales of existing homes rose 2.9% to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, the National Association of Realtors reported after the start of trading. Economists were expecting to see a fall.

“We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” said NAR chief economist Lawrence Yun in a statement.

However, the median home price declined 8.2%.

The Russell 2000 (NYSE:IWM) has opened strong on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) may improve its offer for Bear Stearns (NYSE:BSC).

At 10:09 a.m. ET, the small-cap index was up 12.12 points, or 1.78%, to 693.54. The Dow Jones Industrial Average (INDU) had advanced 168.52 points, or 1.36%, to 12,529.84.

Stocks small and large opened in the green on news that JPMorgan Chase & Co. may improve its offer for Bear Stearns to $10 a share from $2 a share in an attempt to appease Bear Stearns’ shareholders, many of whom are angry at the low price of the original offer.

An announcement on the future of the deal is expected today, according to news reports.

The Russell 2000 (NYSE:IWM) futures have moved up and the small-cap index will probably open higher.

Stocks are poised for a bullish opening following news that investment bank JPMorgan Chase & Co. (NYSE:JPM) may improve its offer for Bear Stearns (NYSE:BSC) to $10 a share from $2 a share. The move is an attempt to appease Bear Stearns’ shareholders, many of whom are angry at the low price.

The Russell 2000 had an "inside session" recovery Thursday, rising 17.29, or 2.60%, to 681.42. The market was able to post a solid advance for the holiday-shortened week despite a sloppy start on Monday, and now needs to hold above 650 this week to help validate any bottoming theories in play.

There is very little solid chart support until we get back down to 667 and 660, but there might be some buying interest on a dip toward 674 if the market starts out soft. On the upside, resistance is at 686, then just below 700. Existing home sales data comes out this  morning at 10:00 a.m. ET and could spark a little volatility.

The Russell 2000 (NYSE:IWM) posted a decline as investors consolidated their positions following Tuesday’s big rally. The small-cap index declined 17.80 points, or 2.61%, to 664.13. The Dow Jones Industrial Average (INDU) lost 293 points, or 2.36%, to 12,099.66.

On a year-to-date basis, the Russell 2000 has shed 13.30%, while the Dow is down 8.78% and the S&P 500 has let go 11.57%.

Small-cap stocks opened in the green but lost steam and reversed midway through the session. The bullish sentiment in the morning was partially attributed to news that Morgan Stanley (NYSE:MS) beat analysts’ expectations despite reporting a decline in fiscal first-quarter profit.

That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

The Russell 2000 (NYSE:IWM) has reversed and shed its morning gains. At 1:08 p.m. ET, the small-cap index had dropped 3.69 points, or 0.54%, to 678.24. The Dow Jones Industrial Average (INDU) was off 72.54 points, or 0.59%, to 12,320.12.

Small caps lost ground and slipped into the red at about 12 p.m. ET as the morning’s bullish sentiment evaporated. There’s no readily apparent reason for the reversal.

Stocks opened in the green on news that Morgan Stanley (NYSE:MS) saw a decline in fiscal first-quarter profit but still beat expectations. That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

Meanwhile, shares of credit card company Visa Inc. (NYSE:V) debuted today with a rise of over 30%.

The Russell 2000 (NYSE:IWM) is trading in the red while the Dow is little changed.

At 11:33 a.m. ET, the small-cap index was up 2.76 points, or 0.40%, to 684.69. The Dow Jones Industrial Average (INDU) is up 24.50 points, or 0.20%, to 12,417.16.

Small-cap stocks opened with a rise following news that Morgan Stanley (NYSE:MS) saw a decline in fiscal first-quarter profit but still beat expectations. That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

Also helping the bulls is Visa Inc. (NYSE:V). Shares of the world’s largest credit card company debuted today with a rise of over 30%.

In economic news, the Mortgage Bankers Association announced before the start of trading that its index of loan application volume fell 2.9% for the week ended March 14. Also, the index of refinancing applications tumbled 4.6%.

The Russell 2000 (NYSE: IWM) futures have retreated and the small-cap index will likely open in negative territory.

Investors appear ready to pull back slightly after the major U.S. indices posted major gains on Tuesday. That’s despite news this morning that Morgan Stanley (NYSE: MS) saw a decline in fiscal first-quarter net income but still beat expectations. Investment banks have come into focus following the emergency sale of Bear Stearns (NYSE: BSC).

The Russell 2000 took flight Tuesday, notching the largest one-day gain of the year as investors embraced yet another reduction in benchmark interest rates by the FOMC. The small-cap barometer shot 31.45, or 4.84%, to 681.93. It’s a familiar refrain, as the market has had a tendency to rally on FOMC day – only to falter in the after wash. It should be interesting to see if this rally can grow legs.

There are no noteworthy economic releases or Fed speakers on tap today, which should free up the market to focus on routine fundamentals and to sift through the impact of Tuesday’s surge to see if there is more gas in the tank. The market poked through a little resistance spot late Tuesday at 680, and that is now immediate support. Below there, look for support at 674, then at 667 and 660. Resistance is at 684.50, and 695.

The Russell 2000 (NYSE:IWM) and the Dow are jumping on expectations of a rate cut and news that major investment banks beat quarterly profit expectations.

At 10:08 a.m. ET, the small-cap index had climbed 16.01 points, or 2.46%, to 666.49. The Dow Jones Industrial Average (INDU) was up 238.70 points, or 1.99%, to 12,210.95.

The bulls are roaring and stocks small and large are flying high following news before the opening that fiscal first-quarter profit at investment banking giant The Goldman Sachs Group, Inc. (NYSE:GS) fell 53% but beat Wall Street’s projections. Similarly, Lehman Brothers Holdings Inc. (NYSE:LEH) also beat expectations despite a decline in profit.

That’s good news for investors, who were looking to see if investment banks will be able to weather the financial turmoil, particularly after Bear Stearns’ (NYSE:BSC) spectacular demise.

Helping the bulls establish their dominance is anticipation that the U.S. Federal Reserve will lower its target federal funds rate at its regularly scheduled policy meeting. The market is pricing a full 1% cut in the federal funds rate, dropping it to 2% from the current 3%. A decision will be announced at about 2:10 p.m. ET.

The federal funds rate is the rate at which commercial banks make overnight loans to each other.

The Russell 2000 (NYSE: IWM) futures have gained and the small-cap index is poised to open in the green.

The bulls are ready to go following news that fiscal first-quarter profit at investment banking giant The Goldman Sachs Group, Inc. (NYSE: GS) fell 53% but beat Wall Street’s projections. Investors are looking to see if investment banks will be able to weather the financial turmoil, particularly after Bear Stearns’ (NYSE: BSC) spectacular demise.

All eyes will be on the U.S. Federal Reserve today as the Fed gets together for its regularly scheduled policy meeting. The market is pricing a full 1% cut in the federal funds rate, dropping it to 2% from the current 3%. A decision will be announced at about 2:10 p.m. ET.

In economic news, the U.S. Labor Department reported this morning that producer prices rose an expected 0.3% in February. Meanwhile, the U.S. Census Bureau reported that housing starts fell more than expected in February, a sign that the housing slump continues in full force.

Small-cap stocks took a dive again on Monday, with the Russell 2000 sinking 12.43, or 1.87% to 650.48, the second lowest daily close since Nov. 1, 2005. The market did generate a mild bounce off the morning lows, and sits on an immediate test into Tuesday’s opening at 650; below there, the next support is at 644. A breach of the latter could see the market back into freefall mode. Look for resistance Tuesday at 660, then at 667 and 677.

The afternoon promises some potential sparks, as the market will react to the FOMC meeting announcement.

 

The Russell 2000 (NYSE:IWM) declined as news of an emergency sale of Bear Stearns spread fears of financial turmoil. The small-cap index fell 12.42 points, or 1.87%, to 650.48. The Dow Jones Industrial Average (INDU) gained 21.16 points, or 0.18%, to 11,972.25.

On a year-to-date basis, the Russell 2000 has shed 15.08%, while the Dow is down 9.74% and the S&P 500 has retreated 13.06%.

Stocks small and large opened significantly lower on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has purchased Bear Stearns (NYSE:BSC) for just $2 per share, according to an announcement on Sunday.

The buyout was unprecedented, as the U.S. Federal Reserve gave JPMorgan $30 billion in special financing to complete the deal and prevent further financial turmoil. Shares of Bear Stearns were worth over $170 a year ago, but the company was heavily involved in securities backed by subprime mortgages and was dealt a lethal blow by the housing downturn.

The Fed also lowered its discount rate, the rate at which it lends funds to commercial banks, to 3.25% from 3.50%. The central bank will hold a regularly scheduled policy meeting on Tuesday, with investors expecting a steep cut in its target federal funds rate.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling following news of the emergency sale of Bear Stearns. At 1:55 p.m. ET, the small-cap index had dropped 13.52 points, or 2.04%, to 649.38. The Dow Jones Industrial Average (INDU) was off 84.75 points, or 0.71%, to 11,866.34.

Wall Street is in a very bearish mood on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has purchased Bear Stearns (NYSE:BSC) for just $2 per share, according to an announcement on Sunday.

The buyout was unprecedented, as the U.S. Federal Reserve gave JPMorgan $30 billion in special financing to complete the deal and prevent a domino effect that would have wreaked havoc on other major financial institutions and deepened the current turmoil.

The U.S. Central Bank also lowered its discount rate, the rate at which it lends funds to commercial banks, to 3.25% from 3.50%, on Sunday.

“It is a measure of the severity of the current financial crisis,” said Dr. Bob Webb, professor of derivatives, trading and fixed income securities at the McIntire School of Commerce at the University of Virginia, in an e-mail. “It is also an indication of how poorly past attempts by the Fed and other central banks to deal with the crisis have fared.”

The Russell 2000 (NYSE:IWM) has trimmed some of its earlier losses but is still deep in negative territory.

At 11:51 a.m. ET, the small-cap index was down 10.86 points, or 1.64%, to 652.04. The Dow Jones Industrial Average (INDU) had retreated 59.51 points, or 0.50%, to 11,891.58.

Stocks small and large have pared some of their earlier losses but are still down on news that JPMorgan Chase & Co. (NYSE:JPM) has purchased Bear Stearns (NYSE:BSC) for just $2 per share, according to an announcement on Sunday.

In an effort to keep other investment banks from going bankrupt, which is what would have happened to Bear Stearns, the U.S. Federal Reserve gave JPMorgan $30 billion in special financing to complete the deal. That’s a risky and desperate move because if something goes wrong, it will be the Fed — not JPMorgan — that will absorb the losses.

The U.S. Central Bank also lowered its discount rate, the rate at which it lends funds to commercial banks, to 3.25% from 3.50%, on Sunday.

The Russell 2000 (NYSE:IWM) and the other major U.S. indices opened lower as news of Bear Stearns’ collapse made investors nervous.

At 10:11 p.m. ET, the small-cap index was missing 8.67 points, or 1.31%, to 654.23. The Dow Jones Industrial Average (INDU) had shed 56.91 points, or 0.48%, to 11,894.18.

Troubled investment bank Bear Stearns (NYSE:BSC) has been sold for just $2 per share, according to an announcement on Sunday. A year ago the New York-based company, which had been severely affected by the meltdown in the subprime mortgage sector, was worth over $170 per share.

The buyer is rival JPMorgan Chase & Co. (NYSE:JPM), which received about $30 billion in special financing from the U.S. Federal Reserve to complete the deal. That’s the first time in history that the Fed is giving money for one investment bank to buy another and prevent its bankruptcy.

Fear of widespread financial distress led the U.S. Central Bank to lower its discount rate, the rate at which commercial banks borrow from the Fed, to 3.25% from 3.50%, on Sunday.

The Russell 2000 (NYSE: IWM) futures have plunged and the small-cap index will open in negative territory.

Futures are lower and investors are nervous following news that troubled investment bank Bear Stearns (NYSE: BSC) has been sold for just $2 per share. A year ago the New York-based company, which had been severely affected by the meltdown in the subprime mortgage sector, was worth over $170 per share.

There are fears of a domino affect that could spread the pain to other investment banks and financial institutions.

The U.S. Federal Reserve responded on Sunday by lowering its discount rate, the rate at which commercial banks borrow from the Fed, to 3.25% from 3.50%.

The Russell 2000 tumbled again Friday, capping an up-and-down week that ended only fractionally higher than where it began. On Friday, the index was down 16.81, or 2.47%, to 662.90. Look for support today just below the market at 660, while critical support remains along the 650 zone. On the upside, resistance is at 668, then a vacuum up to 678 and 684.

There could be some morning volatility into the opening. The 9:15 a.m. Industrial Production data could introduce some volatility into the mix.

The Russell 2000 (NYSE: IWM) posted a big loss as news of liquidity problems at Bear Stearns spread credit fears. The small-cap index fell 16.81 points, or 2.47%, to 662.90. The Dow Jones Industrial Average (INDU) declined 194.65 points, or 1.60%, to 11,951.09.

On a year-to-date basis, the Russell 2000 has lost13.46%, while the Dow is down 9.90% and the S&P 500 has retreated 12.27%.

Stocks small and large tumbled today on news that Bear Stearns’ (NYSE: BSC) cash position has deteriorated significantly over the past 24 hours. The investment bank, which has been highly exposed to the subprime mortgage sector, turned to J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve for short-term financing to alleviate its liquidity problems.

There’s speculation that Bear Stearns will soon be purchased by one of its larger rivals. News of the company’s problems spread fears of a severe credit squeeze, leading to a sharp sell-off.

The Russell 2000 (NYSE: IWM) and the Dow have added to their losses as credit fears grip Wall Street. At 3:06 p.m. ET, the small-cap index had dropped 20.32 points, or 2.99%, to 659.39. The Dow Jones Industrial Average (INDU) was missing 275.33 points, or 2.27%, to 11,870.41.

The sell-off has intensified as news of liquidity problems at Bear Stearns (NYSE: BSC) have spread fears of a widening credit squeeze. The investment bank reported shortly after the opening that its cash position deteriorated significantly over the past 24 hours.

The New York-based company turned to J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve for short-term financing to alleviate its liquidity problems. Bear Stearns has been highly exposed to the meltdown in the subprime mortgage sector, first feeling pain last summer when two of its hedge funds went belly up due to bets made on securities backed by mortgages.

The Russell 2000 (NYSE: IWM) and the Dow are deep in negative territory on news of liquidity problems at Bear Stearns.

At 12:23 p.m. ET, the small-cap index had shed 14.42 points, or 2.12%, to 665.29. The Dow Jones Industrial Average (INDU) was down 177.96 points, or 1.47%, to 11,967.78.

The bears are running the show on news shortly after the opening that brokerage house Bear Stearns (NYSE: BSC) has seen its cash position deteriorate significantly over the past 24 hours, necessitating emergency short-term financing from J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve.

Bear Sterns has been among the financial companies most severely affected by the meltdown in the subprime mortgage sector.

In economic news, the University of Michigan reported after the start of trading that its preliminary index of consumer confidence fell to 70.5 in early March from 70.8 in February. Economists were expecting to see a steeper decline.

With stocks falling, shares of airline companies are leading the descent.

The Russell 2000 (NYSE: IWM) began in the green but soon fell deep into the red on news of problems at Bear Stearns.

At 10:05 a.m. ET, the small-cap index was down 13.77 points, or 2.03%, to 665.94. The Dow Jones Industrial Average (INDU) had shed 208.17 points, or 1.71%, to 11,937.57.

Stocks opened in positive territory on news before the opening that consumer prices surprisingly stayed put in February, according to the U.S. Labor Department. The core index, which excludes the costs of food and energy, was also unchanged. Economists were expecting both measures to rise 0.2%.

The numbers make it easier for the U.S. Federal Reserve to lower interest rates when it next meets on March 18; however, consumer prices have increased 4% on a year-over-year basis, above the Fed’s preferred range of between 1% and 2%.

The bullish sentiment evaporated quickly, though, on news that J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve will loan money to Bear Stearns (NYSE: BSC) to help it deal with its liquidity problems.

Bucking the negative trend is Exelixis Inc. (Nasdaq: EXEL). The biotechnology company reported before the start of trading that Genentech Inc. (NYSE: DNA) has exercised the option to further develop and market Exelixis’ experimental cancer drug XL518.

"Bad, ugly times are priced into the market," says Jim Oberweis, Jr., editor of The Oberweis Report. The advisor is focused on growth stocks and is known for his Octagon Strategy, which assesses growth stocks based on eight primary metrics, including growth expectations, financial stability and valuation.

Perhaps the most critical of these concerns is that a stock's price-to-earnings multiple not exceed its growth rate. In other words, if the P/E is 30, the stock must be showing 30% annual growth. This steadfast focus on growth at a reasonable  price has led to a top long-term performance record for Oberweis.

"Fear of the future is what drives stocks lower and when the market is near the bottom, it doesn't usually feel like better times lie ahead,” he says. “But when everyone is betting on bad times, even mediocre improvements can lead to powerful rallies."

One sign that adds to Oberweis' current bullishness is the move by Wall Street firms to lay off employees. "Fears have been brought to life by layoffs at Goldman Sachs (NYSE: GS), Merrill Lynch (NYSE: MER), Morgan Stanley (NYSE: MS), Lehman Brothers (NYSE: LEH) and Bear Stearns (NYSE: BSC),” he says.

To be precise, he says, the last time the "Wall Street Man and the Common Man met in line at the unemployment office" was in mid-2002, after the dot-com bust had crushed the investment banks and shaken technology firms alike.”

He says that at that time, the investment industry shrank, confidence sagged and layoffs ensued, but as it turns out, it was a good time to be buying stocks.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting solid gains on news of data that point to a stabilization in the U.S. housing market.
 
At 10:49 a.m. ET, the small-cap index was up 5.28 points, or 0.73%, to 729.23. The Dow Jones Industrial Average (INDU) was up 24.22 points, or 0.19%, to 12,851.71.

Pending U.S. home sales fell a more-than-expected 2.6% in November to a reading of 87.6, the National Association of Realtors reported after the start of trading. The October reading was an upwardly revised 89.9.

However, the numbers are seen as a positive sign for the troubled U.S. housing sector.

The Chicago-based trade group reported that the pending sales activity indicates that existing-home sales will hold steady in the coming months before rising late in the year.

“A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008,” said Lawrence Yun, NAR chief economist, in a statement. “There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase.”

Total new-home sales for 2007 are projected to fall to 773,000, and then decline further to 669,000 in 2008 before rising above 700,000 in 2009.

The stagnation in U.S. housing sector is one of the main factors dragging down domestic economic growth and raising fears of a possible recession.

Shifting gears, the bulls gained strength before the start of trading on news that the CEO of Bear Stearns (NYSE: BSC) is stepping down. The New York-based investment bank took a hard hit in 2007 due to the meltdown in the subprime mortgage sector, which is inextricably tied to the problems in the housing sector.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are rising despite generally bearish economic and financial news.
 
At 10:45 a.m. ET, the small-cap index was up 2.14 points, or 0.28%, to 758.27. The Dow Jones Industrial Average (INDU) had climbed 20.49 points, or 0.16%, to 13,227.76.

The day began with news before the start of trading that the U.S. economy grew at an annual rate of 4.9% during the third quarter, according to final figures released by the Commerce Department. The economy grew 3.8% in the second quarter.

The third-quarter growth was the fastest pace in four years, but many economists projected that growth will slow down markedly in the fourth quarter and into the first half of 2008 as the credit squeeze and falling home prices take their toll.

As the economy slows, the labor market will probably cool. Statistics released before the opening confirm this.

The U.S. Labor Department said that jobless claims for the week ended Dec. 15 increased 12,000 to 346,000 from an upwardly revised level of 334,000 in the preceding week. The rise is greater than projected.

The four-week moving average, considered a more stable measure, showed an increase of 4,250 to 343,000. The level a week earlier was 338,750.

Elsewhere, investment bank Bear Stearns (NYSE: BSC) reported a quarterly loss of $854 million, or $6.90 per share, compared with net income of $563 million, or $4.00 per share, a year earlier.

The New York-based company was one of the first to feel the pain of the meltdown in the subprime mortgage sector when two of its investment funds went belly-up this summer.

The Russell 2000 (NYSE: IWM) fell today on news that reminded investors of the fallout from the subprime mortgage mess. The small-cap index retreated 7.91 points, or 1.04%, to 752.06. The Dow Jones Industrial Average (INDU) was off 65.84 points, or 0.49%, to 13,248.73.

On a year-to-date basis, the Russell 2000 has dropped 4.49%, while the Dow has advanced 6.21% and the S&P 500 has gained 3.26%.

Only the bears showed up today following news that financial services giant JPMorgan Chase & Co. (NYSE: JPM) downgraded fellow industry players Bear Stearns (NYSE: BSC), Goldman Sachs Group, Inc. (NYSE: GS) and Lehman Brothers Holdings Inc. (NYSE: LEH) to “sell” from “market perform.”

The news spooked investors who worried that a stagnating U.S. housing market could continue to plague banks and financial institutions and cause more economic malaise, possibly even triggering a recession.

All three New York-based financial services companies had invested in securities backed by subprime mortgages and took a hit during the third-quarter, declaring billions in write-downs on mortgage and other credit assets.

Economists worry that the ongoing slump in the U.S. housing sector and a credit squeeze will combine to significantly drag down U.S. economic growth in the fourth quarter of 2007 and into 2008.

The Russell 2000 (NYSE: IWM) opened in negative territory as credit jitters continue to weigh down the financial sector.

At 10:26 a.m. ET, the small-cap index was down 6.54 points, or 0.86%, to 753.43. The Dow Jones Industrial Average (INDU) had lost 36.25 points, or 0.27%, to 13,278.32.

The futures were pointing down and stocks predictably opened with a drop on news that JPMorgan Chase & Co. (NYSE: JPM) downgraded Bear Stearns (NYSE: BSC), Goldman Sachs Group, Inc. (NYSE: GS) and Lehman Brothers Holdings Inc. (NYSE: LEH) to “sell” from “market perform.”

All three New York-based financial services companies had invested in securities backed by subprime mortgages and have been negatively affected by the slump in the U.S. housing sector.

Financial stocks have been taking a beating over the past months, and today JPMorgan lowered its estimates for the sector’s fiscal fourth quarter and 2008.

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will probably open with a drop.

The bears are ready to go on news that an analyst with JPMorgan Chase & Co. (NYSE: JPM) downgraded Bear Stearns (NYSE: BSC), Goldman Sachs Group, Inc. (NYSE: GS) and Lehman Brothers Holdings Inc. (NYSE: LEH) to “sell” from “market perform.”

All three New York-based financial services companies have invested in securities backed by subprime mortgages and have been negatively affected by the slump in the U.S. housing sector.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• America’s Car-Mart, Inc. (CRMT), up 17% on news it swung to a fiscal second-quarter profit.
• U.S Auto Parts Network (PRTS), up 5%.
• Cache Inc. (CACH), up 5%.

Biggest percentage losers:

• China GrenTech Corporation Ltd. (GRRF), down 7%.
• Paragon Shipping Inc. (PRGN) down 6%.
• Parallel Petroleum Corp. (PLLL) down 5% on news it has raised its credit facility to $200 million from $150 million.

The Russell 2000 (NYSE: IWM) and the Dow posted solid gains following news of a milestone deal between General Motors and the United Auto Workers. The small-cap index added 6.12 points, or 0.76%, to 809.12. The Dow Jones Industrial Average (INDU) moved up 99.50 points, or 0.72%, to 13,878.15.

Stocks began the day on a bullish note and stayed in positive territory throughout the session following news that the United Auto Workers union and General Motors Corp. (NYSE: GM) reached an agreement for a new national contract.

This afternoon, about 73,000 factory workers ended their two-day strike and began returning to work after it was announced that the Detroit-based company has promised to invest in UAW factories in the United States and make improvements to its retirement benefits. In return, General Motors will shift to an independent trust over $50 billion in debt that it owes to the UAW for the health benefits of retired workers.

Some observers are referring to the deal as a huge step forward for the automaker, which should now be able to operate under a cost structure similar to that of Japanese rival Toyota Motor Corp. (NYSE: TM). General Motors, a Dow component, has posted losses in the past two years while Toyota has been chipping away at its market share.

News of the deal dominated headlines today as investors apparently disregarded negative economic reports.

The Russell 2000 (NYSE: IWM) and the Dow lost ground as news of a strike at General Motors weighed heavy on investors’ minds. The small-cap index fell 7.31 points, or 0.90%, to 805.80. The Dow Jones Industrial Average (INDU) dropped 61.13 points, or 0.44%, to 13,759.06.

Workers at General Motors Corp. (NYSE: GM) took to the street today as the automaker failed to reach a labor agreement with the United Auto Workers.

The nationwide strike is the first in more than 30 years at the Detroit-based company and comes at a time when the troubled GM is trying to cut costs and raise its head above water after two years of steep losses.

The dispute revolves around GM’s need to reduce labor and health-care costs and the UAW’s focus on protecting the benefits of 73,000 members who work at the company’s U.S. production facilities. Union leaders declared a willingness to continue negotiations and most observers expect the dispute to be resolved quickly.

News of the strike emboldened the bears and scared away the bulls.

Otherwise, the day began with futures pointing up and stocks poised to rise following news that tech sector heavyweights have received analyst upgrades.

The Russell 2000 (NYSE: IWM) and the Dow (INDU) are trading near the flat line following news of upgrades in the tech sector.

At 10:00 a.m. ET, the small-cap index had lost 2.67 points, or 0.33%, to 810.44. The Dow Jones Industrial Average was down 8.78 points, or 0.06%, to 13,811.41.

With little coming out on the economic front, investors are taking a cue from analysts’ upgrades of major tech sector players.

Shares of Apple Inc. (Nasdaq: AAPL) are rising after Citi Investment Research, the research arm of financial services giant Citigroup Inc. (NYSE: C), raised its target price. Citi cited lower cost estimates and an upbeat outlook for upcoming product launches.

Mobile device maker Motorola Inc. (NYSE: MOT) is looking good after RBC Capital Markets upgraded the Schaumburg, Ill.-based company to “outperform” from “sector perform.”

Adding to the upbeat news from the tech sector, EMC Corp. (NYSE: EMC) a maker of data-storage computers and software, was upgraded by both Citigroup and Bear, Stearns & Co. (NYSE: BSC).

Elsewhere, shares of General Motors Corp. (NYSE: GM) are looking up due to speculation that the Detroit-based automaker will be able to reach a new labor agreement with the United Auto Workers and avoid a strike by the union’s 73,000 members.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index is likely to move up following news of analysts’ upgrades.

With little in the way of economic news, investors are focusing their attention on bullish developments in the tech sector.

Shares of Apple Inc. (Nasdaq: AAPL) are rising after Citi Investment Research, the research arm of financial services giant Citigroup Inc. (NYSE: C), raised its target price. Citi cited lower cost estimates and an upbeat outlook for upcoming product launches.

Mobile device maker Motorola Inc. (NYSE: MOT), is also enjoying a pre-market bump after RBC Capital Markets upgraded the Schaumburg, Ill.-based company to “outperform” from “sector perform.”

Adding to the upbeat news from the tech sector, EMC Corp. (NYSE: EMC) a maker of data-storage computers and software, was upgraded by both Citigroup and Bear, Stearns & Co. (NYSE: BSC).

The Russell 2000 (NYSE: IWM) and the Dow halted two days of strong gains on concerns about the far-ranging impact of the subprime meltdown and news of mixed earnings. The small-cap index fell 7.64 points, or 0.93%, to 809.76. The Dow Jones Industrial Average (INDU) lost 48.86 points, or 0.35%, to 13,766.70.

Futures were pointing south and small-cap stocks opened with a drop following news that financial services giant Bear Stearns Companies Inc. (NYSE: BSC) suffered a 61% drop in the third quarter due to its investment in securities backed by subprime mortgages.

Of the major financial institutions, the New York-based brokerage house is the most exposed to the subprime mortgage market and has suffered the most since the meltdown began earlier this year.

On the other hand, Goldman Sachs Group, Inc. (NYSE: GS) announced that its quarterly earnings soared 79%, breezing past Wall Street’s projections.

Transport giant FedEx Corp. (NYSE: FDX) added to the negative tone when it announced that it is reducing its fiscal year 2008 expectations due to a weaker U.S. economy.

Meanwhile, U.S. Federal Reserve Chairman Ben Bernanke appeared in front of Congress and told lawmakers that the recent financial turbulence stems from the troubled subprime mortgage sector, “but the resulting global financial losses have far exceeded even the most pessimistic estimates of the credit losses on these loans.”

Consequently, “recent developments in financial markets have increased the uncertainty surrounding the economic outlook,” Bernanke said to members of the House of Representatives Financial Services Committee.

That was enough to set the stage for the bears to dominate the session. The Russell 2000 went down and never neared positive territory, while the Dow bounced around close to the flat line before settling on a downward trajectory early in the afternoon.

Otherwise, the economic news that came out today was generally positive.

The U.S. Labor Department reported that the number of American workers filing for unemployment benefits fell 9,000 to 311,000 for the week ended Sept. 15, the lowest level in seven weeks.

Economists had forecasted claims to stay at their upwardly revised previous level of 320,000.

The numbers indicate a surprising improvement in the labor market, which has become the focus of attention during the past few weeks as fears of an economic slowdown have multiplied.

Elsewhere, the Federal Reserve Bank of Philadelphia reported that its monthly index of regional manufacturing activity showed an unexpectedly strong rise in September. The index covers Pennsylvania, New Jersey and Delaware.

The Russell 2000 (NYSE: IWM) is falling with the Dow (INDU) trailing, while the price of oil rises yet again and the U.S. dollar slides. At 2:50 p.m. ET, the small-cap index had shed 11.42 points, or 1.4%, to 805.98. The Dow Jones Industrial Average was down 60.32 points, or 0.44%, to 13,755.24.

The bears are running the show this afternoon as stocks interrupt two days of strong gains.

Transport giant FedEx Corp. (NYSE: FDX) set the negative tone when it announced before the start of trading that it is reducing its fiscal year 2008 expectations due to a weaker U.S. economy.

Similarly, financial services giant Bear Stearns Companies Inc. (NYSE: BSC) reported that its profit fell a breathtaking 61% in the third quarter due to its investment in securities backed by subprime mortgages.

In economic news, the Federal Reserve Bank of Philadelphia reported after the opening that its monthly index of regional manufacturing activity showed an unexpectedly strong rise in September.

The Business Outlook Survey showed that the indices for general activity, new orders, employment and shipments increased, reflecting continued underlying growth. According to the survey, 30% of manufacturing companies report an increase in activity, while 19% report a decline.

The index covers Pennsylvania, New Jersey and Delaware.

Elsewhere, the price of oil has added about $1.39 to nearly $83.32 a barrel, which is yet another record level. The increase follows news that production from the Gulf of Mexico has been decreased due to forecasts that a tropical depression affecting the region could intensify. Oil has been above $80 during the past week.

The Russell 2000 (NYSE: IWM) and the Dow (INDU) are below the flat line after two days of strong gains.

At 10:38 a.m. ET, the small-cap index had lost 3.69 points, or 0.45%, to 813.71. The Dow Jones Industrial Average had shed 24.80 points, or 0.18%, to 13,790.76.

Speaking to Congress this morning, U.S. Federal Reserve Chairman Ben Bernanke told lawmakers that the recent financial turbulence stems from the troubled subprime mortgage sector, “but the resulting global financial losses have far exceeded even the most pessimistic estimates of the credit losses on these loans.”

The result, Bernanke said, is that “recent developments in financial markets have increased the uncertainty surrounding the economic outlook.”

Nevertheless, he said the overall financial system remains strong.

News of those remarks cast a dark cloud over Wall Street and stocks fell out of the gate, since recovering some of their losses.

Contributing to the bearish sentiment this morning, financial services giant Bear Stearns Companies Inc. (NYSE: BSC) reported that its profit fell a whopping 61% in the third quarter due to its investment in securities backed by subprime mortgages, marking the company’s worst quarterly performance since 2006.

On the other hand, Goldman Sachs Group, Inc. (NYSE: GS) announced that its quarterly earnings soared 79%, easily outpacing Wall Street’s projections. Profit for the three months ended Aug. 31 was $2.85 billion, or $6.13 per share, while analysts had forecasted a profit of $4.35 per share. The New York-based investment bank had a net income of $1.55 billion, or $3.26 per share, a year earlier.

In economic news, the number of American workers filing for unemployment benefits fell to the lowest level in seven weeks, announced the U.S. Labor Department before the start of trading. Initial jobless claims for the week ended Sept. 15 fell 9,000 to 311,000, while economists were expecting claims to stay at their upwardly revised previous level of 320,000.

The four-week average dipped to 320,750, from 324,250.

The labor market has come in focus as fears of an economic slowdown have increased in the past few weeks, but today’s numbers show an unexpected improvement.

Overseas, Japan’s Nikkei 225 added a minuscule 0.2%, while in London the FTSE 100 let go 0.6%.

Elsewhere, a Philadelphia-area manufacturing survey will be coming out later today.

The Russell 2000 (NYSE: IWM) futures are sagging and the small-cap index will likely open lower despite good employment news.

The number of American workers filing for unemployment benefits fell to the lowest level in seven weeks, the U.S. Labor Department said. Initial jobless claims for the week ended Sept. 15 fell 9,000 to 311,000, while economists were expecting a more modest decline of 6,000.

The labor market has come in focus as fears of an economic slowdown have increased in the past few weeks. Today’s numbers show that the labor market remains strong.

Bearish news is coming out of financial services giant Bear Stearns Companies Inc. (NYSE: BSC), which reported that its quarterly profit fell a whopping 61% due to its investment in securities backed by subprime mortgages.

On the other hand, investment bank Goldman Sachs Group, Inc. (NYSE: GS) announced that its quarterly earnings soared 79%.

Elsewhere, U.S. Federal Reserve Chairman Ben Bernanke spoke to Congress this morning. The Fed chief told the House Financial Services Committee that the contagion from the subprime mortgage meltdown has spread throughout financial markets and could have negative consequences for the overall economy.

The Russell 2000 (NYSE: IWM) and the Dow fell following mixed economic data and more bad news from the U.S. housing sector. The small-cap index shed 4.21 points, or 0.53%, to 783.11. The Dow Jones Industrial Average (INDU) lost 50.56 points, or 0.38%, to 13,238.73.

The day got off to a bearish start following news that Lehman Brothers Holdings Inc. (NYSE: LEH) lowered the third-quarter and second-half earnings forecasts of four of the five largest securities firms due to credit problems stemming from the subprime meltdown.

The New York-based investment bank projects that Goldman Sachs Group Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), Merrill Lynch & Co., Inc. (NYSE: MER) and The Bear Stearns Companies Inc. (NYSE: BSC) will be negatively impacted by turmoil in the credit and asset-backed and mortgage markets during the third quarter.

Many financial institutions with investments in securities backed by subprime mortgages have been hurt this summer as cash-strapped borrowers defaulted and foreclosures increased in the wake of the ongoing slump in the U.S. housing sector. Bear, Stearns already got burned in June, when two of its investment funds lost nearly all of their $3.2 billion in value.

Stocks fell but immediately started rising, helped by news of strong economic growth.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are falling following negative news from the financial sector.

At 10:12 a.m. ET the small-cap index was down 1.23 points, or 0.16%, to 786.09. The Dow had retreated 48.61 points, or 0.37%, to 13,240.68.

The bears have taken center stage on news that investment bank Lehman Brothers Holdings Inc. (NYSE: LEH) has cut the third-quarter and second-half earnings forecasts of four of the five largest securities firms due to problems in the credit markets following the subprime meltdown.

Goldman Sachs Group Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), Merrill Lynch & Co., Inc. (NYSE: MER) and The Bear Stearns Companies Inc. (NYSE: BSC) will be negatively impacted by turmoil in the credit and asset-backed and mortgage markets during the third quarter, according to an analyst at New York-based Lehman Brothers.

Many financial institutions that have invested in securities backed by subprime mortgages have been hurt this summer due to the ongoing slump in the U.S. housing sector and the rising number of delinquencies and foreclosures.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are both down on news of downgrades in the financial sector and worries about consumer confidence.

At 9:55 a.m. ET the small-cap index had lost 9.53 points, or 1.21%, to 779.92. The Dow had shed 84.05 points, or 0.63%, to 13,238.08.

The financial sector is helping the bears this morning after industry giant Merrill Lynch & Co., Inc. (NYSE: MER) downgraded shares of investments banks The Bear Stearns Companies Inc. (NYSE: BSC), Lehman Brothers Holdings Inc. (NYSE: LEH) and Citigroup Inc. (NYSE: C) to “neutral” from “buy.”  The New York-based company cited renewed global credit concerns that could hurt earnings.

The Russell 2000 (NYSE: IWM) futures are in negative territory and the small-cap index is likely to open lower due to worries in the financial sector.

The financial sector is sagging in pre-market trading, after industry giant Merrill Lynch & Co., Inc. (NYSE: MER) downgraded to “neutral” from “buy” shares of investments banks The Bear Stearns Companies Inc. (NYSE: BSC), Lehman Brothers Holdings Inc. (NYSE: LEH) and Citigroup Inc. (NYSE: C). The New York-based company cited renewed global credit concerns that could hurt earnings.

Two hours before the close the Russell 2000 (NYSE: IWM) is in the red while the Dow is posting solid gains. At 2:12 p.m. the small-cap index had shed 1.14 points, or 0.15%, to 754.28. The Dow Jones Industrial Average (INDU) was up 90.80 points, or 0.69%, to 13,272.71.

Small cap stocks are bobbing up and down, only briefly venturing into positive territory before submerging again. Larger-cap indices are generally trading above the flat line on news of an improvement in the outlook of major financial firms.

Financial services heavyweight UBS upgraded brokerage house Merrill Lynch & Co., Inc. (NYSE: MER) to “buy” from “neutral” saying that the stock price is low and buying makes sense.

The analysts claim that the major brokerage houses are strong enough to handle credit losses caused by the subprime meltdown.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) gained on news of modestly upbeat economic data, despite more credit concerns. The small-cap index added 1.80 points, or 0.23%, to 777.92. The Dow moved up 150.38 points, or 1.14%, to 13,362.37.

The day got off to a negative start following news that Bear, Stearns & Co. Inc. (NYSE: BSC) will prevent investors from pulling their money out of a troubled hedge fund, which renewed concerns about loans and securities derived from home mortgages.

The New York-based financial services heavyweight is a repeat offender. Two similar hedge funds that had placed bets on securities backed by subprime loans imploded in late June, losing virtually all their value.

In a sign that the contagion has spread globally, Australia’s Macquarie Bank warned that two of its debt funds face losses of up to 25%. On Monday, Germany’s IKB Deutsche Industriebank AG reported that it will fall short of its 2007-2008 earnings forecast after one of its investment funds got burned.

The Russell 2000 (NYSE: IWM) is firmly in negative territory while the Dow is flat. At 2:22 p.m. the small-cap index had lost 4.79 points, or 0.62%, to 771.33. The Dow Jones Industrial Average (INDU) had added 2.43 points, or 0.02%, to 13,214.42.

Trading continues volatile, with investors weighing news of cautiously optimistic economic data against fears of a deepening credit crunch.

The bears felt emboldened on renewed concerns about loans and securities derived from home mortgages following news that Bear, Stearns & Co. Inc. (NYSE: BSC) will prevent investors from pulling their money out of a troubled hedge fund.

That’s the third case of a fund managed by the New York-based financial services heavyweight feeling the heat after placing bets on securities backed by subprime mortgages. Two similar hedge funds imploded in late June, losing virtually all their value.

The Russell 2000 futures are pointing south and the small-cap index is likely to open with a decline following more concerns about credit markets.

Renewed concerns about loans and securities derived from home mortgages are likely to bring out the bears, with financial services giant Bear, Stearns & Co. Inc. (NYSE: BSC) announcing that it will prevent investors from pulling their money out of a troubled hedge fund.

Funds that had placed bets on securities backed by subprime mortgages were among the first to feel the painful aftershocks of the slump in the U.S. housing sector, but the contagion has spread to the broader mortgage industry and mainstream lenders.

Shares of MC Shipping Inc. (AMEX: MCX) have sailed into positive territory on news the operator of second-hand vessels is being purchased by a private-equity affiliate of investment bank Bear, Stearns & Co. Inc. (NYSE: BSC).

The newly formed entity will pay $14.25 per share in cash, or about $284 million, for MC Shipping, according to an announcement after the start of trading. That’s 19.6% above the stock’s closing price of $12.10 on Friday, July 27.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) stumbled hard for the second day in a row on fears that cheap credit has dried up. The small-cap index fell 13.65 points, or 1.72%, to 777.83. The Dow lost 208.10 points, or 1.54%, to 13,265.47.

The Russell 2000 fell four out of five days this week, dropping a cumulative 58.61 points to its lowest level since March 14.

Credit has been cheap for the past few years, fueling a boom in corporate takeover deals and helping cash-strapped families finance new home purchases.

But fears are mounting that the party is coming to an end.

The U.S. housing sector started to weaken in the second half of 2006, when stagnant prices led to increased delinquencies and foreclosures jumped as borrowers struggled to repay cheap loans.

The pain was first felt by the subprime financial sector, which serves individuals with poor credit histories, but it increasingly appears that there has been a sizeable ripple effect.

The Russell 2000 (NYSE: IWM) and the Dow fell as stocks reacted to news of more subprime woes. The small-cap index dropped 3.98 points, or 0.47%, to 845.91. The Dow Jones Industrial Average (INDU) lost 53.33 points, or 0.38%, to a record close of 13,918.22.

Once again, subprime mortgage problems downed stocks.

News that two hedge funds managed by Bear, Stearns & Co. (NYSE: BSC) have become essentially worthless – one has imploded completely while the other has lost over 90% of its value – pushed the major U.S. indices down as soon as trading began.

The funds had made bets on sub-prime mortgage bonds, which turned problematic when housing prices started declining and delinquencies and foreclosures increased.

The major U.S. indices have extended their losses as investors sort through the subprime meltdown. At 12:50 p.m. The Russell 2000 (NYSE: IWM) is leading the way down, having lost 9.81 points, or 1.15%, to 840.08. Dow Jones Industrial Average (INDU) is down 95.43 points, or 0.68%, to 13,876.12.

Stocks started falling as trading began on news that one hedge fund managed by Bear, Stearns & Co. (NYSE: BSC) has become worthless while the other has lost more than 90% of its value. The funds had made bets on sub-prime mortgage bonds and started feeling the heat as housing prices began to decline in the second half of 2006 and delinquencies and foreclosures increased.

Custom stuffed animal maker Build-A-Bear Workshop, Inc. (NYSE: BBW) is evaluating potential strategic alternatives to enhance long-term shareholder value and plans on expanding its North American store base to at least 350 stores, the St. Louis, Mo.-based company  said this morning. Shares are up $3.25, or 14%, to $25.76.

Shares of Trump Entertainment Resorts Inc. (Nasdaq: TRMP) are up on news this morning that the Atlantic City, N.J.-based casino hotels have been upgraded to “Peer Perform” from “Underperform” by investment bank Bear, Stearns & Co. Inc. (NYSE: BSC).