Tag - :GM

Read any basic investment book and it will tell you that small-cap stocks are riskier than large-cap stocks. On an individual basis, that may be true.

However, if you do your homework and dig deep into the financials of small-cap stocks, you can reduce risk and increase reward dramatically.

For the record, small cap analyst Tyler Laundon points out that small caps tend to outperform large caps over the long-term. He believes that many investors mistake small cap 'risk' for what is actually short-term price volatility...

Evidence is mounting that the auto industry is springing back to life.

The auto industry worldwide is on the mend, and that signals opportunity for investors to become reacquainted not only with the big vehicle makers, but some of the smaller parts suppliers.

The days of the General Motors (NYSE: GM) and Ford (NYSE: F) profit machines cranking out generous earnings and dividends may be over. But that doesn't mean that there aren't solid dividend paying stocks in the auto sector.

Are you ready for the electric revolution in the automotive industry?

During the past few months, a limited number of Americans have begun to buy the Chevrolet Volt from General Motors Co. (NYSE: GM) and the Leaf from Japan's Nissan (OTC: NSANY.PK).

In the usually quiet week between Christmas and New Year's China shook up the investing world by saying that it will further limit exports of rare earth elements. By now you've likely heard of rare earth elements, either in this letter or from other media outlets.

Small Caps making up the Russell 2000 are up 3.76% as of reporting at 1:30 P.M. Eastern today. This leads the Dow Jones Industrials, up 2.85%, and the Nasdaq, up 2.62%.  

Leading small cap gainers today include U-Store-It Trust (NYSE:YSI), up 19.6%, which owns and operators self storage facilities in the United States on news of its establishment of a self storage network to include the company owned 386 facilities as well as 150 locations run with third-party partners, and plans for 250 more in the works to join the network.  

Other small cap leaders include MarineMax (NYSE:HZO) up 22.64%; American Axle (NYSE:AXL) up 22.06%; Russ Berrie & Co (NYSE:RUS) up 19.6%, Celldex Therapeutics (Nasdaq:CLDX), up 32.1%; Green Plains Renewable Energy (Nasdaq:GPRE), up 32.7%.  

Readers from Friday's edition will recall that GPRE was a market leader before the weekend as well. It closed on Friday at $4.40 after flirting with the $4.50 mark having opened at $3.41 in the morning. In Monday's open GPRE gapped up to start at $5.00 and as of press time is at $5.84, up 32.7% for the day. 

Since the opening bell after Memorial Day, GPRE is up 107%. GPRE produces, distributes, and markets ethanol and related products in the United States. GPRE was founded in Omaha, Nebraska in 2006. GPRE recently purchased two ethanol plants previously owned by VeraSun Energy.  

*****Both the Nasdaq and the S&P 500 are hitting new recovery rally highs today. Part of the reason for today's strength is the better than expected construction numbers released this morning.  

The 0.8% gain in construction spending for April was the biggest gain in nearly a year. And it was far better than economists' expectations of a 1.5% drop.  
This is how it will be during an economic recovery. There will be wild swings in data. Don't be surprised if construction contracts for May, and then picks up in June. Or vice versa. It really could go either way. And that won't necessarily be bad news.  
Of course, it would be great to see the numbers continue to steadily improve. But that's not the way it works when an economy is recovering from the type of shocks the U.S. economy has received.  

*****General Motors (NYSE:GM) ended the suspense. As expected, it filed for bankruptcy protection this morning. It's the 4th largest bankruptcy filing in US history. GM has $82 billion in assets and $172 billion in debt.  

GM stock is up +20% in the early going today. I want to know why. My guess is that shorts are covering their positions. Still, I don't know why. It's expected that GM common stock will be cancelled as part of the bankruptcy proceedings.

That would mean that shorts don't have to cover their position. However, shorts may continue to incur borrowing fees from the shares they have sold. In order to be completely free of the trade, maybe covering is the way to go.  

*****I've read that GM may resume trading as a new public company in 6-12 months. I don't see why it should take that long. A motivated bankruptcy judge ought to be able to deal with GMs debt faster than that.  

But I will say that, depending on the terms of the bankruptcy, GM stock should be a good buy when it comes public again. GM will be stripped of one of its major stumbling blocks - pension benefits.  

It's estimated that pension benefits add $1,500 in expenses for GM on each car it builds. Obviously, in today's competitive environment, that's insurmountable.  
However, once these costs are gone, and GM can operate with leaner margins, the stock could be a good buy.  

*****SmallCapInvestor PRO readers are enjoying their second +100% gain this year. The stock is Genco Shipping (NYSE:GNK) and it was recommended on April 9 at $14.20 a share. Please do not by the stock now. We will be taking our profits on it in the near future.  

We're holding our other triple digit winner. This domestic oil and gas stock is up +130%. But the strength in oil prices means that there should be more gains coming. Look to this sector to continue providing winning small caps in the months to come. 
I'm getting ready to increase our exposure to China in SmallCapInvestor PRO. The two Chinese stocks in the portfolio now are up, and China is the best growth story in the world right now (indeed, some analysts and economists are calling for China, not the U.S., to lead us to recovery). For more on SmallCapInvestor PRO, please please click HERE.
*****Graham Corp (AMEX:GHM) reported earnings on Friday. And they were not very good. The stock has lost nearly $3 over the past few days. That's plenty for me. If you bought Graham on my recommendation in Daily Profit, it is now time to take your profits. I hope you did well.  

Stocks are in the red today after new data did little to bolster investors’ spirits that the economy is slowly getting better.

At 2:51 pm ET, the Russell 2000 (NYSE:IWM) is down 1.43%, while the Dow is down 1.10% and the S&P 500 is down 1.44%.

Today the Labor Department said consumer prices in April were flat, as economists predicted, while New York-area manufacturing activity and industrial production contracted less than economists expected. Investors remain cautious ahead of several reports out next week on housing.

Small caps bucking the decline today include BioCryst Pharmaceuticals (Nasdaq:BCRX), up 30% after reporting encouraging results from its Phase II lymphoma trial, and Fuqi International (Nasdaq:FUQI), 20% higher following strong first-quarter results.

******You know over the course of the past few months I’ve not held Wall Street or the banking executives in high regard. I hold them almost — that’s almost — singularly accountable for our current recession (Uncle Sam and private citizens who borrowed too much are to blame as well), but the government is beginning to really stick its nose too far. For example, today’s headlines (those not about whether Nancy Pelosi knew about torture and when she knew it) are consumed with government pushing itself on private industry, most notably with the pressure on Bank of America (NYSE:BAC) to change its board.

Granted, “regime change” is a necessity for most of the companies receiving TARP money. After all, they’re the ones who got us into this mess. But shouldn’t it be shareholders forcing the issue? You saw how they forced Ken Lewis of Bank of America to give up his role as chairman. This was done at the shareholder level, not by some bureaucrats in a windowless office overlooking the National Mall.

But for many Beltway insiders this isn’t enough. Someone’s got . . .

Stocks are continuing their descent Monday afternoon on news that GM CEO Rick Wagoner has been asked to step down by the Obama administration.

At 1:33 pm ET, the Russell 2000 (NYSE:IWM) is down 12.97, or 3.02%, at 416.03, while the Dow is down 3.34% at 7,516.60 and the S&P 500 is down 3.4% at 788.18.

This morning the White House rejected turnaround plans from GM (NYSE:GM) and Chrysler. In response to the rejected proposals, the Obama administration pushed out GM's Wagoner and directed Chrysler to move quickly to forge a partnership with Fiat if it expects to receive additional government assistance. Wagoner was replaced with GM COO Fritz Henderson.

Small-cap Providence Service Corp. (Nasdaq:PRSC) is up over 30% this afternoon after the company guided earnings above estimates. Also climbing higher today is small-cap retailer Shoe Carnival, Inc. (Nasdaq:SCVL), rising 15% on higher-than-average volume, and InterDigital, Inc. (Nasdaq:IDCC), up 16% after cutting 100 jobs and announcing a business realignment.

******I didn’t know former General Motors CEO Rick Wagoner was so popular. The morning headlines in the financial press make it sound as though stocks are selling off because Wagoner and other auto industry executives failed to put forth strong enough turnaround plans to guarantee more government loans.

Never mind that the S&P 500 rallied 167 points, or 25%, over the last two weeks. Ignore the possibility that one of the sharpest rallies in stock market history might have some investors taking profits.

Now, that’s not to say that the hard line taken by the Obama administration toward the automakers isn’t affecting the stock market. It is. But just as the market rallied on news starting March 9, the bad news from the automakers is a catalyst for selling. News tends to catalyze investors’ predispositions.

*****The suggestion by the Obama administration that Wagoner step aside if GM is to get any more government money is certainly interesting. I’m sure that there will be many pundits criticizing the President for this move. After all, do we believe that President Obama knows more about making cars than a Detroit CEO?

Even though Wagoner pinned his company’s future on the Hummer . . .

Stocks are navigating through choppy trade midday on news of an improvement in U.S. consumers’ moods, financials cutting earlier losses, and an upgrade of Merck (NYSE:MRK), which boosted the healthcare sector.

At 1:36 pm ET, the Russell 2000 (NYSE:IWM) is up 2.11, or 0.54%, to 392.23. The Dow is up 0.25% to 7,188.30 and the S&P 500 is up 0.15% to 751.88.
The Reuters/University of Michigan Surveys of Consumers reported today that its preliminary index reading of confidence for March increased to 56.6 from 56.3 in February. That beat economists' expectations for a reading of 55.
The Rally

Stocks made another impressive move higher on Thursday. I think we’re all enjoying seeing a little upside for stock prices. There is a light at the end of the tunnel. But I don’t want us to lose sight of the near certainty that at least one of the lights we’ll see in the darkness will be the proverbial oncoming train.

Market bottoms can be difficult events to get a handle on. Bullish and bearish sentiment is in equilibrium. As individual investors, we might feel that things aren’t getting any worse, but they aren’t getting better, either. Sell-offs appear to clearly be buying opportunities (like when the Dow dropped to 6,440), but any upside is immediately suspect because there’s no real improvement to the fundamental picture.

It’s important to remember that the markets are constantly in flux. Even when things look calm, tension is building below the surface that will propel stocks in one direction or another. Consider the underlying events during this week’s rally …

Re-valuing Banks

We know the bearish story for stocks pretty well by now. But when Citigroup (NYSE:C) came out and said things were going well for it, a . . .

Stocks climbed higher into the midday despite a credit rating cut for large-cap benchmark General Electric Co. (NYSE:GE).

At 12:45 pm ET, the Russell 2000 (NYSE:IWM) is up 11.02, or 3.01%, to 377.32. The Dow is up 1.8%, finally above the 7,000 mark, and the S&P 500 is up 1.94% to 735.39.

The cut on GE’s credit rating did little spark fear in investors, who had expected deeper cuts for the large-cap company. GE is currently up 12%. Small-cap automaker General Motors (NYSE:GM) is also helping to buoy the Dow this afternoon, after GM’s CEO reported the company will not need the $2 billion loan for March that it previously requested from the U.S. government.

Earlier this morning unemployment and retail sales numbers were released, causing stocks to open lower. The Labor Department said first-time requests for unemployment insurance increased to 654,000 from the previous week's figure of 639,000, above analysts' expectations. The government also reported that retail sales fell in February for the seventh time in the past eight months. Retail sales edged down 01% last month, less severe than the 0.5% drop that economists had expected. 

A 34% gain in seven days

As promised, SmallCapInvestor PRO readers took their gains on Arena Pharmaceuticals (Nasdaq:ARNA) on Wednesday. The final haul was 34%. Not bad for holding a stock for seven days. I expect we’ll re-buy Arena if it drops to $4.50 over the next few days.

I hope Small-Cap Daily readers were able to lock in some gains on the stocks we recently recommended here.

*****The next few days should be interesting for the stock market. I’m a bit surprised that the major indices finished in the green on Wednesday. I’ll be more surprised if they finish with gains today.

Congress will be discussing mark-to-market rules today. It’s a safe bet that some kind of easing of these rules will happen. That would essentially buy the banks some time that could be better spent than writing down assets and taking losses. And . . .

Stocks continued their drop from the opening on a pullback in energy prices and on rumors that small-cap General Motors (NYSE:GM) may file bankruptcy.

At 11:30, the Russell 2000 (NYSE:IWM) was down 16.96, or 4.57%, at 354.34, while the Dow is down 3.16% to 6,658.88, and the S&P 500 is down 3.69% to 686.60.

The bad news out this morning weighed on stocks, and included a survey release that showed nearly 12% of mortgage holders are behind on payments or are in foreclosure.

GM auditors have said they have “substantial doubt” as to whether the battered automaker has the ability to continue, and GM said they may have to seek bankruptcy protection if its huge restructuring plan falls through. GM shares slid over 16% and are now under $2 per share.

Small caps bucking the downward trend today include Weight Watchers International (NYSE:WTW), up 18 on heavier-than-average volume. Cornell Companies (NYSE:CRN) is up over 10% after reporting a rise in Q4 profit, and also reporting positive Q4 profit results was Genesco, Inc. (NYSE:GCO), up 10% on the news.

*****Wednesday's rally could have been stronger, though you can't really be surprised that investors aren't jumping head first back in the stock market. Volume appears to have been solid, but not outstanding.

The most encouraging aspect to Wednesday's rally was leadership. We got leadership from technology and oil. If investors are buying in anticipation of an economic recovery, then oil necessarily must trade higher. Because any uptick in economic activity means increased demand for oil. And with OPEC production cuts taking hold and recent reserve draw-downs, the oil market has to be tight. 

*****Jason Cimpl, analyst for TradeMaster Daily Stock Alerts, made 10% on the US Oil Trust ETF (USO) last week. And the USO position he recommended . . .

Stocks are expected to extend losses seen on Thursday, with Dow futures down 1.82% and S&P 500 index futures down 1.74%.

At closing on Thursday, the Dow fell to the lowest level in more than six years, which caused a giant global sell-off in overnight trading. In Japan, stocks were down 2% while in Europe they were falling sharply deeper.

The stock market has limped along the past two weeks — reaching low levels not seen in the past fews months — as investors continue to lose confidence in myriad government programs put forth by the Obama administration programs to strengthen the economy, and poor economic data is continually released every week.

Speaking of data, a new report on consumer prices, which measures inflation, was released this morning at 8:30 am ET. Economists predicted the Consumer Price Index likely rose by 0.3% last month, and the data turned out to be exactly in line with the predictions. The rise was the largest monthly increase in prices since July. (The CPI fell 0.7% in December after dropping 1.7% in November and 1% in October).

Large-cap banks CitiGroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC) were getting hammered again in pre-market this morning, after being ravaged on Thursday. Citigroup is down 12.75% to $2.19, while Bank of America has fallen nearly 7% to $3.66 in trading ahead of the bell.

In other news, General Motors (NYSE:GM) has cut loose its Saab division, which filed for bankruptcy protection this morning, while Lowe's (NYSE:LOW) reported a 60% drop in Q4 profits this morning and forecasted a 2009 profit below estimates.

Stocks opened higher Wednesday, just one day after suffering steep losses tied to ongoing investor concerns about the economy, but quickly turned south ahead of President Obama’s $75 billion mortgage relief plan release.

At 10:27 am ET, the Russell 2000 (NYSE:IWM) is down 5.31, or 1.24%, to 423.59. The Dow and S&P 500 are faring slightly better, but are still in the red, down 0.48% and 0.60%, respectively.

President Obama’s signing of the $787 billion economic stimulus bill into law on Wednesday did little to bolster market sentiment, but there is hope that his $75 billion mortgage relief plan, to be unveiled this afternoon, will buoy the stock market to higher waters. A main cause of the recession has been steep declines in housing prices and sales coupled with rising foreclosures; a solid housing plan out of the Obama administration may be seen as welcoming news to investors.

Before the bell, the Commerce Department reported that construction of new homes and apartments fell to a record low annual rate of 466,000 in January — a 16.8% drop compared with analyst predictions of a mere 5% . . .

After major losses suffered on Tuesday, stocks are expected to open modestly higher Wednesday, propelled by President Obama's anticipated announcement at 12:15 pm ET of a plan to prevent mortgage foreclosures.

The announcement will come on the heels of new housing data, released at 8:30 a.m. ET. The Commerce Department said construction of new homes and apartments fell to a record low annual rate of 466,000 in January, a 16.8% drop compared with analyst predictions of a mere 5% drop. Analysts were forecasting an annual rate of 530,000 units from 550,000 units in December. A main cause of the recession has been steep drops in housing prices and sales coupled with rising foreclosures; a solid housing plan out of the Obama administration will be seen as welcoming news to investors.

In other economic data out in pre-market, import prices fell for the sixth month in a row in January. This signals that low commodity prices and the global recession will be major elements of disinflation in the months ahead.

General Motors (NYSE:GM) and Chrysler submitted their proposal late Tuesday to the U.S. Treasury, asking for a combined $22 billion more in emergency . . .

Stocks started off this four-day trading week in grim fashion, as sour U.S. manufacturing data did little to ease investor fears that the recession will let up anytime soon. Add to that today’s news that the SEC charged Houston-based Stanford Financial Group with massive alleged fraud involving a multibillion-dollar investment scheme, and today’s potent cocktail sent small caps tumbling 17.05, or 3.80%, to 431.31. The Dow fell 3.25%, while the S&P 500 careened 4.08%. The major indices closed at or near the day’s lows.

For the year, the Russell 2000 (NYSE:IWM) is down 14.13%, while the Dow is down 13.95% and the S&P 500 is down 12.63%.

Manufacturing in New York contracted in February at the fastest pace on record, falling to minus 34.65. Economists expected a reading of minus 24.

General Motors (NYSE:GM) and Chrysler were in a race to finish restructuring plans to present to the federal government today but seemed unlikely to complete deals with debtholders and union workers by the government-imposed deadline. The companies planned to submit the details to the Obama administration to illustrate that the two battered automakers can return to profitability. At the close, shares of GM were down a dizzying 13.6% to $2.16. The proposal is still being hammered out.

Today gold reigned supreme, hitting a seven-month high on economic concerns fueled by the weak manufacturing data. Gold rose to $966 per ounce, and briefly touched $971 per ounce during afternoon trading. Small-cap gold companies . . .

Small caps opened lower, extending losses seen on Friday. At 10:40, the Russell 2000 (NYSE:IWM) is down 15.09, or 3.37%, to 433.27. The Dow is down 3.15%, while the S&P 500 is 3.91% lower. This morning’s slide took the S&P 500 below the 800 level for the first time since the bear market low of Nov. 21 as financials and shares of big energy companies weighed.

General Motors Corp. (NYSE:GM) is down 12.8% ahead of its expected proposal out today with Chrysler LLC. The companies plan to submit the details to the Obama administration to illustrate that the two battered automakers can return to profit. The proposal aims to cut jobs and pare brands, among other things, in hopes of securing billions of dollars in additional federal aid that the companies say they will pay back. General Motors is asking for another $4 billion on top of the $9 billion it has already received, while Chrysler wants another $3 billion on top of the already borrowed $4 billion.

President Obama is scheduled to sign the $787 billion stimulus bill into law today, and is set to detail a plan on Wednesday to help stem mortgage foreclosures. By the losses Wall Street has seen this morning, it seems investors have . . .

Stocks are expected to open lower today on worries that the government's stimulus won't be the quick fix investors had hoped for to cure the ailing economy.

President Obama is scheduled to sign the $787 billion stimulus bill into law today, and is set to to detail a plan on Wednesday to help stem mortgage foreclosures. By the way that stocks are selling off ahead of the opening, it seems investors have already priced the Obama news into the market and are looking for steadier direction. The Dow average futures fell 1.83% in pre-market, while the S&P's 500 index futures tumbled 2.09% and Nasdaq 100 index futures fell 2.36%.

Also in the news this morning is a proposal being hammered out between General Motors Corp. (NYSE:GM) and Chrysler LLC to submit to the Obama administration by Tuesday to illustrate the two battered automakers can return to profit. The proposal aims to cut jobs and pare brands, among other things, in hopes of securing billions of dollars in additional federal aid that the companies say they will pay back. General Motors is asking for another $4 billion on top of the $9 billion it has already received, while Chrysler wants another $3 billion on top of the already borrowed $4 billion.

The markets closed out a losing week on Friday, where Treasury Secretary Timothy Geithner's stimulus comments on Tuesday and the legislative voting on the bank bailout plan did little to squelch negative investor sentiment. On Friday the Dow closed at 7,850.41, its lowest close since Nov. 20, when the index settled at . . .

U.S. stocks are expected to open higher following gains overnight in Europe and Asia, where banking, steel and semiconductor shares lifted the world market to its first gain in four days. Australia joined the United States in passing a stimulus program, and there is some budding hope ahead of the weekend that these various spending plans will help stabilize global economic activity. The Dow is called 30 points higher, while the Russell 2000 (NYSE:IWM) is seen up 0.4%, near 452.25.

Looking at overseas action, European shares were up about 1.8%, while Asian markets gained nearly 1% to generate the first winning day in Asia this week. Japan was up 0.9%, South Korea up 1%, India up 1.7%, China up 3.4%, Hong Kong up 2.4%, Singapore up 1.2% and Australia climbed 1.2% after pushing through its own stimulus program despite running into obstacles earlier this week.

Some stocks making noise overnight include General Motors Corp. (NYSE:GM), rising some 3.5% after gaining a provision in the stimulus package that will erase a tax liability of $10 billion. Wells Fargo & Co. (NYSE:WFC) was active on the downside after saying it will have hefty write downs. Small-cap apparel firm Abercrombie & Fitch Co. (NYSE:ANF) posted a big drop in quarterly profits ahead of the opening and said they would not issue a forecast for 2009, but the stock was up solidly in pre-market trading, which shows just how low expectations have already been made for . . .

Small-cap stocks pushed higher Tuesday, shaking off losses in the banking and financial sector amid gains for homebuilders, drug and energy shares. The Russell 2000 (NYSE:IWM) closed up 3.28, or 0.73%, at 452.90, but lagged gains in the Dow and S&P 500, which takes some of the edge off the advance. For the year, the Russell is down 9.3%, while the Dow is off 7.9% and the S&P 500 is down 7.1%.

The market started off on a defensive note and continued to chop around on both sides of positive ground until the bulls gained traction in the afternoon. About 30 minutes into the session an upbeat reading on pending home sales and an announcement by the Federal Reserve that they would extend various credit windows helped underpin the market.

For the record, pending home sales came in plus 6.3%, well above the forecast for a flat reading. The upside release helped spark a rise in homebuilder stocks with the ISE Homebuilders Index climbing 8.3%. Several key companies in the homebuilder universe fall within small-cap guidelines, including Meritage Homes Corp. (NYSE:MTH), which jumped 17% on the day. Small-cap builders KB Home (NYSE:KBH) rose 10%, while Centex Corp. (NYSE:CTX) was up 10%.

The other piece of economic data in play today came from various sales reports out of automobile companies. As expected, vehicle sales fell off a cliff again in January, with General Motors Corp. (NYSE:GM) collapsing 49%, Ford Motor Co. (NYSE:F) down some 40%, while Toyota Motor Corp. (now the world’s largest automaker) saw a sales drop of 34% and Nissan tumbled 30%. Despite the sober news on sales, Ford shares actually finished higher on the day (up about 4%), while General Motors was down 3%.

Energy shares outpaced the overall market rise today, helped along by a modest 1.7% advance in crude oil futures, which gained $0.70 a barrel to $40.78. Crude prices were underpinned by talk of additional production cuts out of OPEC and some . . .

Small-cap stocks drifted lower into mid-session, unable to keep pace with mild gains in large-cap indices as smaller banks and financial firms were a drag on the Russell 2000 (NYSE:IWM). At 12:17 p.m. ET, the Russell was down 0.60, or 0.13%, at 449.02.

Losses were limited by a surprisingly stout rise in pending home sales, which were up 6.3%, compared with market expectations for a flat number. Homebuilder stocks seemed to get a lift from the number, with the ISE Homebuilder Index rising 5.2%. Small-cap homebuilder KB Home (NYSE:KBH) was up 6.8%, while Meritage Homes Corp. (NYSE:MTH) was up 10.9%.

The Federal Reserve also announced plans to keep programs on commercial paper operations running for a longer time frame, which was a supportive element for the market. Despite those two upbeat news items, bank stocks were a major drag on the market, with the KBW Banking Index off about 4.1%.

Earnings were a mixed bag today, but expectations are so low on the profit front, that any sign of mild upside surprises is embraced by investors. Drug maker Merck & Co. (NYSE:MRK) beat the estimate and was a big supportive element for the Dow index. Drug stocks in general were outpacing the overall market, with the AMEX Pharmaceuticals Index up 1.6%.

Looking at sector activity, motorcycle manufacturers were a top performer today, but the large automakers were in retreat mode as they release sales numbers today. General Motors Corp. (NYSE:GM) was down 6.1%, while Ford Motor Co. (NYSE:F) was down 3.1%. Personal products companies, steel stocks, coal firms and general merchandise stores were all doing well today. On the downside, the . . .

Small-cap stocks remained sharply lower into mid-session, but were up from the extreme morning lows. Losses were stirred by worries over the economy, a revenue warning from key tech player Intel Corp and news of a big fraud from a major Indian outsourcing firm. At 12:33 p.m. ET, the Russell 2000 (NYSE:IWM) was down 11.90, or 2.31% at 502.81.

President-elect Obama addressed several issues at mid-morning, ranging from the Middle East situation to the economy. He said that his stimulus plan will likely be at the high end of expectations, which likely helped pull stocks off the morning lows. Equities markets in the United States and even around the world have embraced talk of a major infrastructure spending plan forwarded by Obama. Obama said that he will deliver a major speech on the economy and the stimulus package on Thursday. He is slated to take over as President on January 20.

Ahead of the opening today, the ADP National Employment Survey reported that 693,000 private sector jobs were lost in December, which was a record high for the ADP report (the data base started in 2001). That figure was way above the consensus ...

Small-cap stocks turned in their best performance of the New Year today, as investors decided that a dreary picture of the current economic environment would simply make it that much easier for incoming President-elect Obama to push through a big fiscal stimulus package. The Russell 2000 (NYSE:IWM) closed up 9.68, or 1.92% at 514.71, the highest daily finish since November 4. For the first three days of trading in 2009, the Russell is up 3.1%, while the Dow is up 2.7% and the S&P 500 is up 3.5%.

In what promises to be a very busy week on the economic data front, the market skipped merrily through several gloomy reports today, with services sector activity, pending home sales and factory orders all consistent with an economy mired deep in recession. Even when a report beats the forecast, as was the case with today’s ISM Non-Manufacturing report on services sector activity, it’s still a low number historically. For the record, the ISM report came in at 40.6, well above the consensus projection of 37.0 and a nice turn of events considering the ISM’s tally on manufacturing Friday reflected a 28-year low.

Elsewhere on the data front, factory orders came in down 4.6%, which was quite a bit ...

Small-cap stocks remained higher into midday trading, surviving a choppy response to economic data this morning that served up better-than-expected numbers on services sector activity, but slumping factory orders and sinking pending home sales. The market now can calm for a an hour or so, waiting for the FOMC minutes, which will be released at 2:00 p.m. ET. At 12:26 a.m. ET, the Russell 2000 (NYSE:IWM) was up 6.15, or 1.2% at 511.18, outpacing more modest gains in the Dow and S&P 500.

Homebuilder, energy and retailer stocks were solid performers so far today, and surprisingly, airline stocks were doing well despite a rise to five-week highs in crude oil prices. Energy futures did peel back off the morning peak, which may have served up a little relief for companies with large exposure to energy price risk. There was also some thinking that when crude oil seemingly failed above $50 dollars today that was a positive signal that even the geopolitical tension in Israel and the gas dispute in Russia weren’t enough to stoke a major explosion right now.

Looking at sector activity so far today, the best performers were health care facilities, industrial real estate investment trusts, metal and mining stocks, internet retailers, semiconductors, life insurers, coal and automobile manufacturers. Speaking of ...

Small-cap stocks started out the first full week of 2009’s trading in choppy, bifurcated fashion, with support from energy and homebuilding stocks countered by selling in banking, financial, gold, telecom and drug shares. The Russell 2000 (NYSE:IWM) closed down 0.82, or 0.16% at 505.03, and is now up 1.1% for the New Year, compared with a gain of 2.0% for the Dow and 2.7% for the S&P 500.

The day looked to start out with a bullish bias amid gains in overseas trading tied to optimism over incoming President-elect Obama’s stimulus plans. Officials said this weekend that the measures could include $310 billion in tax cuts, an idea that was embraced by overseas investors – especially in those companies with strong sales to U.S. customers. However, the market has already had a few “Obamanomics” rallies in recent weeks and didn’t seem inclined to run with this latest information.

Telecom and banking shares were both bruised by analyst downgrades in the respective sectors. Dow component JP Morgan Chase and Co. (NYSE:JPM) was one ...

U.S. stocks are expected to open the first trading day of 2009 near steady levels, with support from overnight gains in Europe and Asia countered by a weak tone in energy. Mining stocks were up in Europe amid gains for industrial metals, even though gold was down. Tech stocks and phone component companies were higher in Asia, but several key markets were closed for the holiday. The Dow is expected to open about down about 5 points, while the Russell 2000 (NYSE:IWM) was seen opening flat at 499.45.

Volume promises to be extremely light, which could make for choppy, uneven trading throughout the session. Stocks in Europe were up about 2% overnight and most of the Asia markets were higher as well. Hong Kong was up 4.5%, Singapore up 3.8%, South Korea was up 3.2% and Australia was down 0.2%. Markets in Japan, China and Taiwan were closed for the holiday. Stocks in India were up 0.5% after the central bank slashed interest rates by 100 basis points.

Individual stocks on the move overnight included General Motors Corp. (NYSE:GM) ...

Small-cap stocks pushed higher in early trading, lifted by news that General Motors Corp. (NYSE:GM) will receive an additional $6 billion in rescue funds, including a $5-billion stake in the financing arm, GMAC. In other developments, a better-than-feared reading on Midwest manufacturing helped soothe the pain from a weak consumer confidence figure. Today's small-cap percentage gainers are Savient Pharma (Nasdaq:SVNT), Franklin Street Properties Corp. (NYSE:FSP), and Elizabeth Arden Inc. (Nasdaq:RDEN).

Other Market Watch highlights included:

• Even though crude oil prices were lower, commodities in general were holding together fairly well, underpinned by a drop in the U.S. dollar against the euro. 
• The Consumer Confidence report came in at 38.0, which was below the forecast of 45.2. Today’s reading marked a record low for consumer confidence as unemployment is on the rise.  
• The Chicago Purchasing Manager’s Survey came in at 34.1, which was better than the forecast and which marked the first rise since August.  
• The Case-Shiller Home Price Index came in at minus 18% in October vs. year-ago levels, which reflects a record annual price decline. However, traders noted the data is dated.  

Small Cap Gainers:

• Savient Pharma is up 11% to $5.47 after news late Mon. that the FDA is giving fast review to its gout drug. See (Nasdaq:SVNT)  
• Franklin Street Properties Corp is up 9.2% after news late Monday it will be added to the S&P SmallCap 600 after Wednesday's close. See (NYSE:FSP)  
• Beauty products company Elizabeth Arden Inc. is up 9.1% to $11.71 after Wedbush Morgan upgrade to "Buy" from "Hold," with a $15 price target. See (Nasdaq:RDEN)  
• AmTrust Financial Services, Inc. is up 8.8% in pre-market, to $12.19. See (Nasdaq:AFSI)


Small Cap Losers:

• Biopharma company Maxygen, Inc., which focuses on developing improved versions of protein drugs, is down 10.4% to $8.11. See (Nasdaq:MAXY)  
• The Finish Line, Inc. is one of the biggest small-cap losers in pre-market trading this morning, down 6.7% to $5.00. See (Nasdaq:FINL)
• Auto supplier Gentex is down 4% in pre-market trading to $7.99 a share. See (Nasdaq:GNTX)  

U.S. stocks are expected to open higher, lifted by gains in Europe and Asia, where tech stocks, steel companies and oil shares were on the rise despite a dip in oil prices. Automakers were climbing in pre-market trading on news that the rescue package for General Motors Corp. (NYSE:GM) has been increased. The market still will have to navigate a series of economic reports this morning, including information on home prices, manufacturing and consumer confidence. The Dow was expected to open 75 points higher, while the Russell 2000 (NYSE:IWM) was seen up 0.6%, near 469.00.

The Treasury announced plans to buy a $5 billion stake in GM’s financing arm, GMAC. In turn, GMAC said that it will immediately resume financing and that it will modify credit criteria to include retail financing for customers. In addition to the $5-billion for GMAC, the government also increased the loan to GM by another $1 billion, adding to the $13.4 billion announced back on December 19.

In overseas trading, Europe shares were flirting with a 1% advance heading into...

Small-cap stocks pushed higher Friday, lifted by a rise in commodity markets, which in turn provided a lift to commodity-themed stocks. Energy markets were a key component on the commodity rise, with crude oil prices up 6.6%, helping offset weakness in financial shares. Volume was extremely light Friday as many market participants took advantage of Thursday’s Christmas holiday to carve out a four-day weekend. The Russell 2000 (NYSE:IWM) closed up 6.28, or 1.34%, at 476.77, and is now down 38% for 2008. The Dow is off 36% for the year, while the S&P 500 is down 41%.

Today’s light volume, limited range affair was remarkably similar to Wednesday’s session, which saw the thinnest one-day range since the whole stock market collapse kicked into gear back in mid-September. On a weekly basis, this was also the tightest range seen in several months.

When looking at sector activity today, commodities were a recurring upside theme, with metals and mining firms, gold stocks, aluminum, oil and gas drillers ranking among the best performing sectors. The U.S. dollar was down modestly against the euro, but this appeared to be more a push for commodity markets than simply a value play based on foreign exchange movement. The Commodity Research Bureau Index was up about 1.3% on the day, with energy, grains and metals leading the way. Gold prices were up 2.7% to a weekly high, and grain markets took flight amid concerns about . . .

Small-cap stocks remained slightly higher into midday trading as the market was on track to eclipse Wednesday’s tame affair as the new “sleepiest” market day of the season. The market was underpinned by gains for energy stocks, automakers and assorted commodity themes, which helped counter losses in financials, tech stocks, casinos, airlines and home entertainment software shares. At 12:27 p.m. ET, the Russell 2000 (NYSE:IWM) was up 1.58, or 0.33%, at 472.06.

General Motors Corp. (NYSE:GM) has been one of the more dynamic stocks so far today, and remained up nearly 14% at mid-session on news that the automaker’s financing arm has been granted bank holding status. This will allow GMAC LLC to access the Federal Reserve’s discount lending windows, which should help the firm stave off bankruptcy in these difficult times for carmakers. Ford Motor Co. (NYSE:F) was up 9%, getting spillover support from the GM rise.

Commodity stocks were faring well today, with energy shares leading the way. The Energy Select Sector SPDR Fund was up about 1%, with crude oil climbing back above $36 a barrel on news that United Arab Emirates officials said they would trim output. There was a sizable rally in grains markets today, which were bolstered by dry weather in South America, the upside pop in energy and a soft tone in the U.S. dollar.

In tandem with the firm tone in commodities, the Brazilian stock market rose 1.7% today as the country is a major exporter of raw goods. Both mining companies and energy names were solid gainers within the Brazilian Bovespa Index on the Sao Paulo stock exchange.

Individual small caps on the rise today included Integral Systems Inc. (Nasdaq:ISYS), which gapped higher and was up 15% after the firm announced results of . . .

Small-cap stocks pushed higher on the open, bolstered by a mild bounce in energy markets, approval for GM’s finance arm to become a bank holding company and a modest rise in Asian equities. Those supportive elements were countered by a dreary picture on the consumer spending front. At 9:56 a.m. ET, the Russell 2000 (NYSE:IWM) was up 1.82, or 0.39%, at 472.30.

With many European markets closed overnight for the Christmas holiday and with quite a few Americans extending Thursday's break into a four-day weekend, volume in equities could be lethargic today. And next week could be an extension of the tame action, with another Thursday holiday for New Year’s celebrations ahead of the weekend.

MasterCard Advisors said that holiday spending from Nov. 1 through Dec. 24 shapes up as one of the worst holiday seasons in decades, with overall sales down 2% to 4%. With about two-thirds of the U.S. economy driven by spending, the slide in year-end shopping is a stark reflection that consumers are struggling amid rising unemployment and falling home values. Despite plenty of gloom about what appears to be a very sluggish holiday spending environment this year, Amazon.com Inc. (Nasdaq:AMZN) officials said that this holiday season was its “best ever” with the peak day coming on Dec. 15. AMZN shares were up 3.7% shortly after the open. Even with all the retailer worries abounding right now, it’s interesting to see that Wal-Mart Stores Inc. (NYSE:WMT) has been the best performing Dow stock this year.

General Motors Corp. (NYSE:GM) was up 10% this morning, lifted by news that the automakers financing arm, GMAC LLC was granted approval by the Federal . . .

U.S. stocks are expected to open modestly higher, supported by gains in Asian markets overnight, a bounce in crude oil prices and approval for GM’s financial division to become a bank holding company. However, gains should be limited by worries over sluggish holiday spending as the economy limps into year-end and the recession deepens. The Dow is expected to open 60 points higher, while the Russell 2000 (NYSE:IWM) is called about 0.7% higher, near 473.80.

In overseas trading, Japan shares were up 1.6%, despite the largest drop in factory output in 55 years. Taiwan shares were up 0.2%, but markets in China, Singapore and South Korea were slightly lower. Overall, the Asian index was up about 0.5% in thin holiday trading. It should be noted that many markets in Europe, plus exchanges in Australia and Hong Kong were closed for the Christmas holiday.

GMAC LLC, which operates the finance arm for General Motors Corp. (NYSE:GM), was approved to become a bank holding company by the Federal Reserve, which would allow GM access to discount lending programs. Shares in GM were up about 7% in pre-market trading on the news.

Crude oil futures rose about $0.85 a barrel heading into the U.S. stock market open, which could provide a lift to energy stocks. Meanwhile, the U.S. dollar . . .

The Russell 2000 (NYSE:IWM) closed down 1.35% as the stock market limps into the final six trading sessions of a year that could be the worst since the Great Depression era. Some of today’s small-cap gainers are Scopus Video Networks (Nasdaq:SCOP), Spartan Chassis (Nasdaq:SPAR) and Colony Unico American Corp. (Nasdaq:UNAM).

Other Market Watch highlights today included:

• The new home sales report came in at an annualized rate of 407,000 units, which was below the forecast for 415,000.
• The truly scary news came from the existing home sales data, which showed sales at an annual rate of 4.49M units, off the 4.93M forecast. 
• Retailer shares also were a drag on the market as stores are getting a chilly reception this holiday season from consumers.
• The S&P Retail Index slipped 1.4% today, and big department stores were among the weakest performers on the session. 
• With a short trading week in tow, the market is getting force-fed a sizable batch of economic data into just a two-day window.
• Crude oil prices tumbled to a contract low today and eventually settled down $0.93 a barrel at $38.98, losing about 2.3% on the session.
• On the docket Wednesday, market watchers will get a chance to react to personal income data, durable goods and weekly claims.

Small Cap Gainers:

• Scopus Video Networks Ltd. jumped 41%, gapping higher on unusually heavy volume on news that the digital video networking firm would be purchased by Harmonic Inc. for $5.62 a share in cash. See (Nasdaq:SCOP).
• Spartan Chassis has reached an agreement with the U.S. government in connection with an investigation of military contracting in South Carolina. Shares . . .

Small-cap stocks struggled again on Tuesday, unable to shrug off awful data on home sales, which were so bad they defied claims that the housing market has bottomed. Retailer shares also were a drag on the market as stores are getting a chilly reception this holiday season from consumers. The Russell 2000 (NYSE:IWM) closed down 6.44, or 1.35%, at 468.64, and is now down 39% for the year. Meanwhile, the Dow is off 37% for 2008, and the S&P 500 is down 41%, as the stock market limps into the final six trading sessions of a year that could be the worst since the Great Depression era.

With a short trading week in tow, the market is getting force-fed a sizable batch of economic data into just a two-day window. The first run of data today had mixed signals; on a positive note, consumer sentiment perked up more than expected in the latest Reuters/Michigan sentiment survey, rising to 60.1, compared with a consensus projection of 58.6. While that’s still a low reading historically, it raises some hope that sentiment is finally on an upswing.

As for the “not-so-good” economic news, the latest picture of the nation’s housing market came in much worse than feared. New home sales tumbled 2.9% to an annualized rate of 407,000 units, below the forecast of 415,000 units. But the really bad news was seen for existing home sales, which make up the lion’s share of housing activity. Existing home sales crumbled 8.6% for the worst decline in 11 years and the rate plunged to 4.49 million units – way below the projection for 4.93 million units. Even more disheartening is that the median home price fell 13.2%, the largest percentage decline in 40 years of collecting data. And it’s not like the bargain basement prices cleaned up inventory either – in fact, the supply of homes is still pegged at 11.2 months (16.7 months for condos). There are many market watchers who believe that the stock market won’t be able to find a bottom until the housing market turns around and these numbers certainly didn’t instill confidence on that front.

“Existing home sales peaked during the summer of 2005 and fell steadily through September 2007. From then through October 2008, home re-sales had been relatively flat, suggesting a bottom may have been reached. However, sales slumped again in November, reflecting the effects of the credit crunch,” Steven Wood, chief . . .

Small-cap stocks turned lower into mid-session trading, unable to sustain a mild morning rise as ongoing worries about the economy came back to the forefront following dreadful data on home sales. As expected, homebuilders were among the hardest hit stocks so far today, with retailers, banks and auto manufacturers also acting as a drag on the market. At 12:49 p.m. ET, the Russell 2000 (NYSE:IWM) was down 7.79, or 1.64%, at 467.28.

Existing home sales, which account for the overwhelming majority of activity, plunged 8.6% to an annual rate of 4.49 million units, far below the projection of 4.93 million units. What’s more, the price on homes tumbled 13.2%, the biggest percentage decline in 40 years. The ISE Homebuilders Index tumbled 3%, outpacing the overall market slide by a wide margin. Among small-cap homebuilders, Centex Corp. (NYSE:CTX) was off 4.1%; KB Home (NYSE:KBH) was down 3%; and Lennar Corp. (NYSE:LEN) was down 4%.

The worst performers so far today have been the automakers, with General Motors Corp. (NYSE:GM) down 15% and Ford Motor Co. (NYSE:F) off 16% following news that their credit ratings were slashed. The PHLX Retail Index was down 1% at midday, while the S&P Retail Index was off about 0.5%. Big department stores were among the worst sector groups today, with Macy’s Inc. (NYSE:M) sinking 5.5%.

The ongoing fretting about the economy pulled down crude oil prices, which slipped below $39 a barrel, off about 3.7% at midday. Energy shares weren’t as weak as the cash market, but were still down about 0.9%, with oil and gas drillers among the weaker performers.

Financial shares were holding up reasonably well, but banks were a noticeable source of strain in the financial arena. The KBW Banking Index was off . . .

Small-cap stocks pushed higher on the opening, maintaining an early gain on a jump in consumer confidence that helped counter absolutely dreadful reports on the housing market. At 10:04 a.m. ET, the Russell 2000 (NYSE:IWM) was up 4.04, or 0.85%, at 479.12.

The new home sales report came in at an annualized rate of 407,000 units, which was below the forecast for 415,000. But the truly scary news came from the existing home sales data, which showed sales at an annual rate of 4.49 million units, way off the 4.93 million forecast. The pace of home sales plunged a record 8.6% in November and the median home price dropped to $181,300, which was a 13.2% annual decline, the largest since records have been kept over the past 40 years.

Despite the gloomy home news, consumer confidence as seen in the Michigan sentiment survey rose to 60.1, which was better than the forecast of 58.6, and which helped counter the horrendous home sales report. Earlier this morning, the GDP report came in at minus 0.5%, which was in line with expectations. The GDP data marked the final revision for the third quarter and reflected the sharpest decline in GDP from the previous quarter since Q3 2001 right after the 9/11 attacks.

In overnight trading, European shares were slightly firm, but Asia stocks took a hit, with car makers still in the spotlight. As for U.S. automakers, credit ratings for both General Motors Corp. (NYSE:GM) and Ford Motor Co. (NYSE:F) were slashed. Shortly after the open, GM was down 11%, while Ford was down 12%. Both automaker stocks . . .

U.S. stocks are expected to open slightly higher after a tame GDP report and will now wait on a raft of numbers slated for a 10:00 a.m. ET release. Overseas trends were mixed, with Europe firm and Asia lower. The Dow should open up about 50 points, meanwhile, the Russell 2000 (NYSE:IWM) should open modestly higher, near 476.25.

The final revision to third-quarter GDP was not changed, and hit the forecast on the nose at a decline of 0.5%, which is consistent with an economy that is in recession. Fourth-quarter GDP is expected to reflect further deterioration. There will be data on home sales and consumer sentiment later this morning that could set the tone for trading.

In overseas trading, Asian stocks took a hit, with Hong Kong off 2.7%, China down 4.8%, Taiwan down 2.8%, Australia off 0.7%, Singapore down 1.2%, South Korea down 3.2% and India off 2.4%. Japan markets were closed for a holiday.

Both U.S. automakers received credit downgrades, with Standard & Poor’s slashing the rating for General Motors Corp. (NYSE:GM), while Moody’s cut the ratings for Ford Motor Co. (NYSE:F). GM shares were off some 4% in pre-market trading.

After the close Monday, Textron Inc. (NYSE:TXT) said it would exit all non-captive financial businesses and trim some 2,200 jobs as the aircraft maker . . .

Small-cap stocks started out what is traditionally one of the quietest weeks of the year in the stock market with a jolting decline as concerns about corporate profits and the slumping economy took a toll on retailer, tech stocks, automakers and energy shares. However, a late bounce off the worst levels of the day took some of the sting out of the decline. The Russell 2000 (NYSE:IWM) closed down 11.19, or 2.30%, at 475.07.

Risk appetite on the equity side of things was also an issue today, with small caps noticeably underperforming large caps most of the day. Part of that might have been an adjustment off the nice rise last Friday and Tuesday for small-cap fare. Still, despite the soft tone in equities, Treasury markets were relatively tame and actually were lower into the final hour of trading, which suggests investors weren’t fleeing stocks for safe-havens, they were just worried about stocks in general.

A big part of that worry was likely tied to expectations for this year’s shopping season to be dismal. Last weekend was supposed to spark a final rush of last-minute holiday shopping, but dreadful weather in many locations probably kept shoppers huddled up indoors instead of at the stores. The International Council of Shopping Centers is anticipating holiday sales to drop as much as 1%, the largest decline since at least 1969, when the group started tracking data.

The U.S. economy is heavily dependent on consumer spending, but with the economy in recession all year and unemployment climbing to the highest levels in a generation, even steep discounts at the stores haven’t been able to save holiday cheer for retailers. The S&P Retail Index tumbled more than 4% today. As for small-cap shops on the move today, Charming Shoppes Inc. (Nasdaq:CHRS) collapsed 20%, basically giving back most of Friday’s dramatic surge. That theme of giving back . . .