Tag - :PSPT

In a fitting finish to an exasperating day, small-cap stocks collapsed in the final half-hour of trading as worries about a recession and tight credit lines clouded exuberance tied to a dramatic coordinated global rate cut ahead of this morning’s stock market open. The Russell 2000 (NYSE:IWM) closed down 12.39, or 2.22%, at 546.57, the lowest daily close since August 2004.

It was a turbulent session that saw the market sharply higher ahead of the open, sharply lower shortly after the open, solidly higher in mid-morning, sharply lower at midday, solidly higher with an hour to go, but then finally sinking back into a red sea by the close. For the year, the Russell is now down 28.6%, while the Dow is off 30.2% and the S&P 500 is down 32.9%. At the lows today, the Russell was down 37.1% from the all-time highs.

At approximately 7:00 a.m. ET this morning, the Federal Reserve slashed the target rate for fed funds to 1.5% from 2.0%, which marked the lowest level for fed funds since August 2004. At the same time, central bankers in England, Switzerland, Sweden and China also announced rate cuts, resulting in the first concerted international action on weak economic conditions since the 9/11 attacks seven years ago.

The market appeared to struggle mightily early today with whether or not the surprise global rate cut move was really enough to unclog credit lines and jolt the economy out of the grip of recession. For most of the day, the answer to those questions appeared to be “no.” However, tech stocks led the way back out of the midday slump, apparently driven by bargain hunting and by ideas that access to cheaper money would help investment in technology companies. The tech-laden Nasdaq 100 gave back a 4% afternoon rally by the close, but still managed to finish flat on the day, bouncing off five-year lows in the process. At the trough today, the Nasdaq 100 was down 42% from record highs, near levels consistent with previous recession . . .

Starrett LS Co. (Nasdaq:SCX), Union Bankshares Inc. (Nasdaq:UNB) and PeopleSupport Inc. (Nasdaq:PSPT) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: NewStar Financial Inc. (Nasdaq:NEWS), Oneida Financial Corp. (Nasdaq:ONFC), Synta Pharmaceuticals Corp. (Nasdaq:SNTA), CBL & Associates REIT (Nasdaq:CBL), Nelnet Inc. (Nasdaq:NNI) and Cheniere Energy Partners L P (Nasdaq:CQP).

Here are the biggest percentage gainers among small caps:

Small-cap stocks opened lower, but clawed back to a mild gain about 20 minutes after the open as fear about a recession and tight credit conditions battled overnight euphoria tied to global central bank rate cuts. This marked the first globally coordinated rate cut by central bankers since the 2001 recession in the aftermath of the 9/11 terrorist attacks. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.53, or 0.63%, at 562.48.

Volatility in the two-hour time frame ahead of the actual market opening has been unprecedented this week. Today saw S&P e-mini futures trade in an astonishing 92-handle range overnight as the market rallied on the rate cut news, then slumped as traders digested the news and decided it wouldn’t necessarily avert recession or unclog credit lines. Unless you were awake early this morning well before the opening, then you never even got to rejoice in a brilliant overnight rally in stock market derivatives.

The market was in retreat mode overnight in the wake of Tuesday’s slide to fresh four-year lows, but when the announcement came out at 7:00 a.m. ET that central bankers around the world were slashing interest rates in concert, it sparked a big relief bounce in equities. European shares went from a stunning 6% loss to a brief positive print, bolstered by not just the coordinated global rate cuts, but also by news that the Bank of England was injecting 50 billion pounds to help the banking business. The news on rate cuts came a little late to rescue Asian stocks, with Japan down 9.3%, Hong Kong off 8.7%, China down 3.7%, Taiwan down 5.7%, Australia off 5%, Singapore down 6.6%, South Korea down 5.2% and India down 3.1%. Trade on Russian and Indonesian shares was halted when they reached 10% declines.

For the record, the Federal Reserve slashed its target rate on Fed funds to 1.5% from 2%, the lowest level since August 2004. Meanwhile, the European Central Bank, Bank of England, Swiss central bank, Swedish central bank and even the Chinese central bank also sliced rates this morning.

Perhaps one early sign that the rate cuts weren’t going to gain immediate traction in the market was that gold prices pushed higher despite the news. Gold is seen as a safe-haven and if that market continues to grind higher, its unlikely money . . .

UAL Corp. (Nasdaq:UAUA), DryShips Inc. (Nasdaq:DRYS) and Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Stewart Enterprises Inc. (Nasdaq:STEI), PeopleSupport Inc. (Nasdaq:PSPT), Dendreon Corp. (Nasdaq:DNDN), Canadian Solar Inc. (Nasdaq:CSIQ), NetGear Inc. (Nasdaq:NTGR) and Hercules Offshore Inc. (Nasdaq:HERO).

Here are the most actively traded companies among small caps:

PeopleSupport Inc. (Nasdaq:PSPT) plunged 19% this morning after announcing that Essar Services has requested to delay the closing of its previously announced acquisition of PeopleSupport.

In a statement issued before the bell this morning, Los Angeles, Calif-based PeopleSupport said it is currently evaluating the request.

Essar Services has asked PeopleSupport, a provider of offshore business process outsourcing, to schedule the closing and effective date of the deal for no later than Oct. 31, 2008.

The deal, originally announced in early August, is valued at $250 million.

Essar Services is actually a subsidiary of Indiaʼs Aegis BPO, which would be the actual acquirer.

By late morning, PeopleSupport is at $9.71, down $2.30 from Monday's close. The stock has ranged from $6.77 to $15.25 during the past 52 weeks.

For detailed price information and news stories on PeopleSupport, click PSPT.

Ameristar Casinos Inc. (Nasdaq:ASCA), Seanergy Maritime Units (Nasdaq:SRG.U) and PeopleSupport Inc. (Nasdaq:PSPT) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Trina Solar Ltd. (Nasdaq:TSL), SL Industries Inc. (Nasdaq:SLI), SuccessFactors Inc. (Nasdaq:SFSF), UAL Corp (Nasdaq:UAUA), YRC Worldwide Inc. (Nasdaq:YRCW) and Dendreon Corp. (Nasdaq:DNDN).

Here are the biggest percentage losers among small caps:

Small-cap stocks slipped back into the red after opening solidly higher. The opening brush into the green was powered by news that the Federal Reserve would open a commercial paper window that should help businesses fund operations. Additional support was tied to oversold conditions and bottoming patterns on daily chart studies after Monday afternoon’s recovery bounce that attracted some cautious bargain-hunting. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.24, or 0.21%, to 594.67.

The Fed’s announcement on commercial paper appeared to be the punch that truly packed power this morning, sparking some thought that this move could help unclog credit lines. Those concerns remained very much in play into this morning’s trading when inter-bank lending rates were still tight overnight. In addition, the commercial paper facility could take some of the edge off the calls for an emergency rate cut, which already seemed unnecessary at this stage since Fed funds have been trading below the target 2% level often in recent days anyhow.

That said, central bankers in Australia announced a stunning 100-basis-point decline in rates overnight, which did spark optimism for hefty coordinated rate cuts in the West as well. PIMCO, which manages the largest bond fund in the world, has already been calling for the Fed funds target to be slashed by 100 bps, preferably in concert with cuts by other worldwide central banks.

Price gyrations in futures markets right before the opening were volatile and extreme, with S&P 500 futures soaring 12 handles, tumbling 14 handles, then jumping 20 handles in the 30 minutes before the real opening. At first the market was underpinned by oversold conditions, then pulled down on disappointment when the Fed simply announced the timing for auctions already planned, then it roared back again when the Fed said they would start a new commercial paper facility. Tossed into the wacky seesaw trading were headlines that Iran forced down a U.S. fighter . . .

Palomar Medical Technologies Inc. (Nasdaq:PMTI), Dendreon Corp. (Nasdaq:DNDN) and UAL Corp. (Nasdaq:UAUA) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: A Power Energy Generation Systems Ltd. (Nasdaq:APWR), PeopleSupport Inc. (Nasdaq:PSPT), Canadian Solar Inc. (Nasdaq:CSIQ), Kohlberg Capital Corp. (Nasdaq:KCAP), Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) and China Sunergy Co Ltd. (Nasdaq:CSUN).

Here are the most actively traded companies among small caps:

Small-cap stocks stumbled Monday, pressured by concerns about the economy, spiking inflation data and jitters ahead of Tuesday’s FOMC announcement. Losses were limited by a sharp decline in crude oil prices, but it wasn’t enough to pull the Russell 2000 (NYSE:IWM) into the green. For the day, the Russell slipped 12.02, or 1.68% to 704.14.

It was an interesting day for the markets as a seller’s mentality gripped investors across nearly all major asset classes. Usually, money will flow from one area to another (like stocks into commodities) but today’s action saw commodities get hammered, even while stocks were soft, and also as credit instruments were weak.

“Mass liquidation is never good,” said Dominic Boyle, market strategist with Lind-Waldock, in an interview with SmallCapInvestor.com. “We’re seeing the biggest one-day decline in commodities since March. It’s especially troubling to see the stock market struggling in the face of steep losses in crude oil,” he said...

PeopleSupport Inc (Nasdaq:PSPT), New Century Bancorp Inc (Nasdaq:NCBC) and Tollgrade Communications Inc (Nasdaq:TLGD) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: US Airways Group Inc (Nasdaq:LCC), Medivation Inc (Nasdaq:MDVN), Astronics (Nasdaq:ATRO), Transition Therapeutics Inc (Nasdaq:TTHI), NewMarket Corp (Nasdaq:NEU) and Aixtron ADR (Nasdaq:AIXG).

Here are the biggest percentage gainers among small caps:

Small caps pulled off their lows midday though remained besieged in the red after a government issued consumer spending report showed a sizeable jump in inflation and after Europe’s largest bank HSBC reported a dismal quarter, warning for continued challenges near term. Traders were also treading carefully ahead of the Federal Reserve’s Federal Open Market Committee meeting Tuesday.

At 12:30 p.m. ET, the Russell 2000 (NYSE:IWM) was down 8.87, or 1.24% at 707.29, while the Dow has managed to eclipse the green, up 4.89, or 0.04%, to 11,331.21.

This morning’s personal income report from the Commerce Department highlighted the threat of inflation. While personal income clocked in better than expected at an increase of 0.1% compared with the forecast of a decline of 0.2%, the inflation portion of the report showed the year-over-year PCE price index soared to 4.1%-- the highest rate in 17 years. The rise in personal income was the smallest rise since April 2007 and was owed mostly to the increase in gas prices.

Investors have become increasingly skittish about the threat of inflation, as rising energy prices have served to crimp consumer purse strings and this report served to play to that fear.

With the limelight on the personal income report, investors paid little attention to the better-than-expected factory orders report, which came in at 1.7%, above the consensus forecast for a rise of 0.7%.

The Federal Reserve holds its monthly policy meeting Tuesday and is widely expected to hold the Fed Funds target steady at 2%. Investors will focus on the central bank’s comments in light of anemic second-quarter GDP data and continued inflation fears.

“With personal spending higher than expected in June and a likely upward revision to inventories, U.S. GDP for Q2 is likely to be revised north of 2%,” Andy Busch, global foreign exchange strategist for BMO Capital Markets said in an email. “This will make it very difficult to get the wheels rolling on the ‘recession procession’ of market participants clamoring for a Fed rate cut.”

Small-cap stocks pressed lower in early trading, pulled down by losses in overseas equities trading, a swollen inflation picture from morning economic data and ongoing jitters over financial shares. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.60, or 1.20% at 707.55. The Russell is testing short-term support along the 707.50 line; a breach of that point would put the next key support point near 701.00.

This morning’s personal income report provided a mixed picture within the data series, with personal income better than expected, and consumer spending above forecast. However, the market focused on the inflation portion of the report, which showed the year-over-year PCE price index at 4.1%, the highest rate in 17 years. And even though headline personal income was better than expected at 0.1% vs. the projection for a dip of 0.2%, it was still the smallest rise since April 2007. The factory orders report at 10:00 a.m. ET came in at 1.7%, which was well above the forecast for a rise of 0.7%.

In stock market trading around the world, equities were out of favor overnight. Japan’s Nikkei was off 1.2%, Hong Kong’s Hang Seng down 1.5%, and China’s stock market down 2.3%. Elsewhere, Taiwan was down 0.3%, as was Australia. Meanwhile, Singapore was down 1.0%, South Korea off 1.9% and India down 0.5%.

European shares were also down heading into the U.S. stock market open, with financial shares acting as a drag after HSBC reported a 28% decline in first half profits and reported a hefty $14 billion debt write down tied to bad U.S. home loans and other asset losses. Major U.S. banks Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Wachovia (NYSE:WB) were down 2.7%, 2.1% and 4.0%, respectively, shortly after the open. Earlier this morning, Oppenheimer analyst Meredith Whitney predicted on CNBC that housing prices were on tap for further losses and she painted a dreary picture for banks, investment banks and brokers.

Some large-caps to keep an eye on today that could spill trends over into the small-cap arena include Chicago Bridge& Iron Co. (NYSE:CBI), which could get a boost after a bullish article in Barron’s over the weekend. Other stocks finding favor in Barron’s include railroad firms Union Pacific (NYSE:UNP) and Canadian National Railway Co. (NYSE:CNI).

Some relief for stocks could come from a pullback in crude oil prices this morning, with futures down more than $1 a barrel, slipping below $124. Bears were pointing to rising output from OPEC on the supply side, and pinched demand from major customers tied to high prices and soft economic growth. However, a new storm was brewing in the Gulf of Mexico, which could keep the bears in check. Elsewhere on the commodity inflation front, platinum prices tumbled 5% overnight as concerns about a global slump in the automotive industry take hold. Copper prices – which are a key indicator of global demand – slumped to 4-month lows. There was some thought that demand from China would basically be at a standstill for a few weeks for the Olympics, which kick off later this week. Also, orange juice and coffee futures were taking a hit this morning, so physical goods price pressures were not a big concern early today for equities.

Shares of PeopleSupport, Inc. (Nasdaq:PSPT) are jumping in pre-market trading after the offshore business process outsourcing provider said this morning that it will merge with Aegis BPO, part of Indian conglomerate Essar Group, through a $250 million cash transaction.

The merger news overshadowed the company’s lackluster second-quarter earnings report. PeopleSupport swung to a loss in the quarter due to increased employee compensation costs, facility costs, and the appreciation of the Philippine Peso compared with a year-ago. Results also fell short of the consensus on Wall Street.

Shares surged 26%, or $2.47, to $12 in pre-market trading. For detailed price information and recent news stories about PeopleSupport, click PSPT. 

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $50 million and $750 million:

Biggest percentage gainers:

• STEC, Inc. (Nasdaq:STEC), up 10% after the provider of flash memory products posted first-quarter results that trumped analysts’ estimates and issued rosy second-quarter guidance above the consensus on Wall Street.
• Eagle Test Systems Inc. (Nasdaq:EGLT), up 9%.
• Approach Resources, Inc. (Nasdaq:AREX), up 9%.

Biggest percentage losers:

• RRsat Global Communications Network Ltd. (Nasdaq: RRST), down 4.3%, despite reporting first-quarter results that met Wall Street’s expectations. The provider of content management and global distribution services also issued second-quarter revenue guidance that was inline with the Street.
• Immersion Corp. (Nasdaq:IMMR), down 3.3%.
• PeopleSupport Inc. (Nasdaq:PSPT), down 2.3%.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) failed to hold mid-morning gains and slipped into negative territory, as investors’ concerns about weak job reports sent stocks plunging. Before the opening, the Labor Department reported that payrolls plunged a greater-than-expected 63,000 in February, heightening recession fears and causing gyrations early in the session.

The Russell 2000 shed 0.40%, or 2.67 points, to 660.11. The Dow Jones Industrial Average lost 1.22%, or 146.7 points, to 11,893.69.

Economists were forecasting an increase in payrolls of 25,000 for February. Today’s data come on the heels of a larger-than-anticipated decline in payrolls in January of 17,000.

The unemployment rate was essentially unchanged at 4.8%, compared with 4.9% in January. Economists were projecting the unemployment rate to edge up to 5%.

Average hourly earnings rose by $0.05, or 0.3%, over the month, according to the Labor Department.

The Federal Reserve’s statement this morning that it will increase the amount of loans it makes to banks failed to calm concerns and buoy the market. Specifically, the central bank augmented auctions of four-week funds to banks to $50 billion from its original $30 billion planned for March 10 and March 24. The Fed also said it will avail an additional $100 billion through repurchase agreements.

In a statement, Fed officials also stipulated that the central bank will continue auctions for at least six months, and would increase the size of such auctions further if needed.

The Russell 2000 (NYSE: IWM) and the Dow failed to hold mid-morning gains and slipped into negative territory by midday, as investors’ concerns about weak job reports sent stocks plunging. Before the opening, the Labor Department reported that payrolls plunged a greater-than-expected 63,000 in February, heightening recession fears and causing gyrations early in the session.

At 2:45 p.m. ET, the small-cap index was down 6.95 points, or 1.05%, to 655.83. The Dow Jones Industrial Average (INDU) had sunk 194.89 points, or 1.62%, to 11,845.50.

Economists were forecasting an increase in payrolls of 25,000 for February. Today’s data come on the heels of a larger-than-anticipated decline in payrolls in January of 17,000.

The unemployment rate was essentially unchanged at 4.8%, compared with 4.9% in January. Economists were projecting the unemployment rate to edge up to 5%.

Average hourly earnings rose by $0.05, or 0.3%, over the month, according to the Labor Department.

The Federal Reserve’s statement this morning that it will increase the amount of loans it makes to banks failed to calm concerns and buoy the market. Specifically, the central bank augmented auctions of four-week funds to banks to $50 billion from its original $30 billion planned for March 10 and March 24. The Fed also said it will avail an additional $100 billion through repurchase agreements.

In a statement, Fed officials also stipulated that the central bank will continue auctions for at least six months, and would increase the size of such auctions further if needed.

The Russell 2000 (NYSE: IWM) and the Dow failed to hold their mid-morning gains, slipping back into negative territory by mid-day, as investors’ concerns surrounding the worst jobs report in five years continued to loom.

At 12:25 p.m. ET, the small-cap index was down 1.54 points, or 0.23%, to 661.24. The Dow Jones Industrial Average (INDU) had sunk 97.61 points, or 0.81%, to 11,943.11.

Before the open, the Labor Department reported that payrolls plunged a greater than expected 63,000 in February, heightening recession fears and causing gyrations early in the session.

Economists were forecasting an increase in payrolls of 25,000 for February. Today’s data come on the heels of a larger-than-anticipated decline in payrolls in January of 17,000.

The unemployment rate was essentially unchanged at 4.8%, compared with 4.9% in January. Economists were projecting the unemployment rate to edge up to 5%.

Average hourly earnings rose by $0.05, or 0.3%, over the month, according to the Labor Department.

The Russell 2000 (NYSE: IWM) and the Dow have reversed declines from earlier this session, after the Federal Reserve said it will inject liquidity into the market quelling investors’ concerns surrounding the worst jobs report in five years.

At 10:49 a.m. ET, the small-cap index was up 4.63 points, or 0.70%, to 667.41. The Dow Jones Industrial Average (INDU) had advanced 26.46 points, or 0.22%, to 12,066.85.

To ease the latest shocks to the economy, the Federal Reserve said this morning that it will increase the amount of loans it makes to banks. Specifically, the central bank augmented auctions of four-week funds to banks to $50 billion from its original $30 billion planned for March 10 and March 24. The Fed also said it will avail an additional $100 billion through repurchase agreements.

In a statement, Fed officials also stipulated that the central bank will continue auctions for at least six months, and would increase the size of such auctions further if needed.

Before the open, the Labor Department reported that payrolls plunged a more than forecasted 63,000 in the month of February, heightening recession fears and causing gyrations early in the session.

Economists were forecasting an increase in payrolls of 25,000 for February. Today’s data comes on the heels of a larger-than-anticipated decline in payrolls in January of 17,000.

Shares of PeopleSupport Inc. (Nasdaq: PSPT) have edged upward on news after the close on Wednesday that the provider of offshore business process outsourcing services has rejected an acquisition bid from IPVG Corp. and AO Capital Partners.

“After a careful and thorough review of the proposal, the board concluded that the proposal is not in the best interests of PeopleSupport or its shareholders,” said chairman and CEO Lance Rosenzweig in a statement.

The Los Angeles-based company had received an unsolicited $15 per share bid from Philippines-based IPVG, which is primarily engaged in business process outsourcing and information technology, and investment firm AO Capital Partners.

Looking ahead, PeopleSupport also released preliminary guidance for the full fiscal year ending Dec. 31.

The company, which has about 9,000 employees worldwide, expects revenue between $180 million and $190 million, well above Wall Street’s projections of $140.66 million.

Earnings are forecasted between $0.65 per share and $0.81 per share, which is below analysts’ projected earnings of $0.87.

“Although PSPT is taking great strides toward improving operations, we are concerned that the truncated period in which the company developed guidance could contribute to increased volatility,” said analyst Samuel Sanders with investment bank Susquehanna Financial Group in a research note. Sanders is maintaining a “neutral” rating.

At 12:54 p.m. ET, shares of PeopleSupport (PSPT) had advanced $0.19, or 1.38%, to $13.96. The 52-week high of $24.41 was reached on Feb. 8, while the 52-week low of $8.19 was set on Aug. 6.

GPC Biotech AG (Nasdaq: GPCB), Optelecom-NKF, Inc. (Nasdaq: OPTC) and PeopleSupport, Inc. (Nasdaq: PSPT) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

PeopleSupport, Inc. (Nasdaq: PSPT), an offshore business process outsourcing provider reported robust third-quarter earnings and issued guidance after the market close on Tuesday, pushing shares higher today.

For the three months ended Sept. 30, the Los Angeles, Calif.-based company recorded net income of $6.4 million, or $0.27 per share, compared with net income of $3.5 million, or $0.18 per share in the same period last year. Analysts surveyed by Thomson Financial were forecasting EPS of $0.06.

“PeopleSupport posted results well ahead of our estimates due to strong ramps with several clients, including JP Morgan Chase and a higher-than-expected contribution from Vonage and the renting of excess capacity to captive operators,” wrote Friedman Billings Ramsey analyst Matthew McCormack in a research note today. “PeopleSupport also posted a gain of $0.11 from its hedging program.”

Revenue increased to $36.9 million, an increase of 23% from revenue of $30.1 million in the third quarter of 2006. Analysts surveyed by Thomson Financial were anticipating revenues of $ $34.73 million. 

Looking ahead, PeopleSupport said it is launching new services, such as providing facilities and business process outsourcing infrastructure to Fortune 500 and mid-market companies pursuing captive business process outsourcing operations in the Philippines.

“We believe the risk profile has increased, given the announcement that the company will go forward with its building plan in Cebu, likely costing $40 million to $50 million over the next two years,” wrote McCormack. “We believe that its plan to enter into a lease-back arrangement for a new building in metropolitan Manila is a better alternative.”

The Russell 2000 (NYSE: IWM) futures are pointing down and the small-cap index will open in negative territory on news of a loss at General Motors.

Automaker General Motors Corp. (NYSE: GM) announced this morning that its third-quarter net loss was a stunning $39 billion, or $68.85 per share, compared with a loss of $147 million, or $0.26 per share a year earlier. The Detroit-based company explained that its huge loss was due to a one-time charge against deferred tax assets. GM has now lost all the deferred tax credits it accrued over the previous three years.

In economic news, the U.S. Labor Department reported that third-quarter productivity increased more than expected. Preliminary numbers show a rise of 4.9%, while economists were expecting an increase of 2.5%. That’s the fastest pace of growth in the last four years.

Productivity increased a downwardly revised 2.2% in the second quarter.

Interestingly, unit labor costs—a key measure of inflation—declined 0.2% in the second quarter. That also defied economists, who were forecasting a rise of 0.8%.

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:

• PeopleSupport Inc. (PSPT), up 15% on news of a larger third-quarter profit.
• DRD Gold Ltd. (DROOY), up 14%.
• CRM Holdings Ltd. (CRMH), up 10% on news of a rise in third-quarter profit.

Biggest percentage losers:

• Nastech Pharmaceutical Company Inc. (NSTK), down 28% on news it has reacquired teriparatide nasal spray for treatment of osteoporosis from its collaboration partner, Procter & Gamble Pharmaceuticals Inc. (PG).
• Sierra Wireless Inc. (SWIR) down 10% on news of a product launch in Japan.
• Lakes Entertainment Inc. (LACO) down 8% on news of a third-quarter net loss.

Cost Plus, Inc. (Nasdaq: CPWM), Novacea, Inc. (Nasdaq: NOVC) and Isramco, Inc. (Nasdaq: ISRL) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers:

Accredited Home Lenders Holding Co. (Nasdaq: LEND), Trump Entertainment Resorts Inc. (Nasdaq: TRMP) and James River Coal Company (Nasdaq: JRCC) are among the most actively traded companies in Wednesday pre-market trading among those with market capitalizations under $500 million:

The following are the most actively traded companies in Monday's trading among those with market capitalizations under $500 million:

After a morning bounce stocks are trading close to the flat line this afternoon, while the price of oil dropped more than one dollar.  In small-cap action, shares of PeopleSupport, Inc. (Nasdaq: PSPT) are sagging on news an analyst lowered the company’s target price, but reports of healthy profit margins boosted Rockford Corp. (Nasdaq: ROFO).

At 2:26 p.m. ET the Russell 2000 had gained 0.17 points, or 0.02 percent, to 829.04.  The Dow Jones Industrial Average was up 2.60 points, or 0.02 percent, to 13,243.98, on track for another record close.

The following were the most actively traded companies in Thursday's trading among those with market capitalizations under $500 million: