Tag - :TGIC

As of press time, 1:00 P.M. eastern, stocks are trading down. The Dow was at 9,324; the Nasdaq at 1,987; and the S&P 500 holding over the crucial 1,000 level at 1,005.

Holding their own were small-cap stocks in the Russell 2000, down on 1/10th of one percent at 572.

Small-cap leading today's declines include Triad Guaranty (Nasdaq:TGIC) down 21% on reporting after Friday's close that the firm posted a net quarterly loss of $359 million versus a net loss of only $199 million from the year ago same period; General Steel Holdings (NYSE:GSI) down 13% on reporting that Q2 losses had widened to $31.8 million from $24.3 million; and Allied Capital (NYSE:ALD) down 13% posting Q2 losses of $0.16 per share and remaining in default on its debt.

That stocks are trading down as little as they are suggests traders are pausing as they await major retailer earnings reports and the results from the Federal Reserve meeting that begins on Tuesday. While the general expectation is that the Fed will maintain rates where they are, they are expected to possibly suggest an extension of the Term Asset-Backed Securities Loan Facility (TALF). The TALF was recently broadened to include commercial mortgage-backed securities.

*****Nobel Prize winning economist Paul Krugman thinks August is the trough month for the U.S. economy. And yes, he is reading a lot into the improved unemployment numbers from July.

Of course, it took trillions in direct spending, guarantees and loans to do it, but he believes we've got actual growth coming. It's worth noting, too, that Krugman estimates the stimulus plans have saved 1 million jobs. So, without the stimulus, unemployment would be around 12%.

*****Krugman's not the only one feeling good about the economy. Also at the Capital Markets Symposium in Kuala Lumpur, economists Laura Tyson (White House economic advisor) and Raghuram Rajan (former IMF lead economist) echoed his feelings. We even heard that a new bull market is here from Goldman's reclusive strategist Abby Joseph Cohen. 

The evidence? Well, there's the improved unemployment numbers, better than expected Q2 GDP number, improved manufacturing numbers, and improvement in the Case-Shiller home price index.

What's missing? Retail sales and commercial real estate.

*****Last week, we got sales reports from a variety of retailers, and they were not good. Clearly with 6.5 million people out of work, there's simply not as much money to be spent. But perhaps equally important is whether employed consumers start to feel more secure and start spending more.

This week, we get earnings from Wal-Mart (NYSE:WMT) and Macy's (NYSE:M). I expect Wal-Mart will be fine. I'm not so sure about Macy's. Investors are also looking forward to back-to-school shopping. Early expectations are that sales will not be good for back-to-school. That probably means there's room for an upside surprise.

Of course, stabilization of the unemployment rate is critical for spending. But so is new job creation. And frankly, that still seems likely to take some time. It's likely that GDP growth is capped at 2% for 2010, and probably 2011, too.

*****We've discussed commercial real estate here in SCI Daily. Now, the Fed appears ready to discuss this issue. It's reported that the FOMC will have commercial real estate on the agenda at this weeks' meeting. That sounds like bad news for the bears…

If the Fed wants to do something about commercial real estate, it certainly can attack the problem via interest rates or loan guarantees. And with another weight lifted off the market's shoulders, we could expect stock prices to head higher.

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*****I'd like to thank SCI Daily readers for your help with the T-shirt slogan contest to support the launch of my first book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks. We've stopped taking submissions for the slogan. We're going through them now and will post the very best to our Facebook page for you to vote on. Watch this space for more information and how you can vote.

Everyone who submitted a T-shirt slogan received a 30-day, 100% complimentary trial to my SmallCapInvestor PRO advisory service. The winner of the voting process gets a one-year subscription to ALL of my advisory and trading services ($2,680 value), plus a signed copy of the book and three t-shirts.

*****The Managed America Internet video conference airs tonight at 6:00 P.M. It's free to attend and there's still time for you to register. Click here to register for this free online event.

Best Regards,

Ian Wyatt
Editor
SCI Daily

Stocks closed lower today as investors took some profits off the table after the market had a long sustained rally. The Dow closed down 39.22 points to 9,280.97; the Nasdaq finished at 1,993.05, down 18.26 points; and the S&P 500 stayed over 1,000 to close at 1,002.72, down 2.93 points.
 

The Russell 2000 was down 4.75 points to close the day at 565.99.

Small-cap price gainers were lead by Radian Group (NYSE:RDN) up 83% on news that the firm handily beat Wall Street expectations. Wall Street had called for the firm to report a quarterly per share loss of $1.51 while the Radian actually reported $2.82 to the positive. Radian's revenues were reported at $577.4 million, with analysts calling only for $284 million.

Other small-cap gainers include Triad Guaranty (Nasdaq:TGIC) up 65%; American Axle & Manufacturing (NYSE:AXL) up 44%; and UQM Technologies (AMEX:UQM) up 31%.

*****Stocks rallied out of the hole yesterday, as expected. It should be clear now that government intervention in the financial markets is supporting asset prices across the board. That includes cars, houses, stocks, bonds - you name it.

Now, I don't mean to suggest that economic fundamentals support current stocks prices. Most likely, earnings expectations and valuations are getting a little out of whack. Barron's has the P...E ratio for the Dow Industrials at 14.76 and the Wall Street Journal says it's 15.03. And forward estimates are about the same. In the current environment, that's fair value at best.

At worst, earnings estimates are too aggressive and valuations should be lower. While the U.S. economy is expected to grow slightly this quarter, I don't see that translating to earnings surprises when third quarter earnings come in. If companies can manage to meet expectations, I'd consider that a victory. Clearly, I don't see much upside for valuations based on fundamentals.

For the bulls, however, the story is about how much downside there is. And again, the government is saying "not much."

*****70% of the U.S. economy is consumer spending. That's a big ratio, and it shows why the U.S. can plunge in to recession easily. It also shows why I expect it to take a while before we return to decent growth rates.

The unemployment rate is pushing 10%. Economists expect it to move into double-digits in early 2010. Personally, I can't believe it will take that long.

The U.S. lost 371,000 jobs in July. Since December 2007, 6.5 million jobs have been lost. There were 5.7% fewer job cuts announced in July than a year ago. That's supposed to sound like the rate of job losses is slowing. And believe it or not, some economists are saying that payrolls could actually rise some in early 2010. Sounds crazy, I know.

But suppose payrolls start rising at the same rate they've been declining? If 371,000 people get jobs every month, it'll take 17 months to get the unemployment rate back where it was when the recession began. That would put the U.S. economy back on track by January 2011 at the absolute earliest.

*****One aspect of government intervention (which I call "Managed America"), is that the U.S. dollar is being systematically devalued. Against the Euro, it's trading lower than when that currency was introduced. (Reference point: today the U.S. dollar fetches just 0.69 Euros while back on January 1, 1999-when the Euro was introduced-you could get 0.86 Euros for your dollar. That's a 25% long-term slide in the value of the dollar.)

This is having a profound effect on commodity prices. Oil, copper, even steel prices are up significantly this year. And given China's continually robust demand and the near certainty that the dollar will remain weak, investing in commodities is rewarding investors handsomely. And if inflation takes hold as the global economy starts to go and central bankers leave stimulative monetary policy in place, commodity prices will hit new all time highs.

My Global Commodity Investing advisory service is benefiting from current commodity prices and will provide one of the only safe havens if inflation picks up. You can find out more about Global Commodity Investing here.

*****The Managed America video conference is coming up next Monday, August 10 at 6:00 P.M. It's free to attend and you can register HERE.

Best Regards,

Ian Wyatt
Editor
SCI Daily

The Russell 2000 (NYSE: IWM) futures are up slightly and the small-cap index will likely open in positive territory.

Today will be a quiet day, with little news on the economic or corporate front. The Mortgage Bankers Association will reveal numbers on mortgage application volume for the week ended Jan. 4, but that measure typically gets little reaction from investors.

Overseas, the United Kingdom’s FTSE 100 index fell 1.4%, while Japan’s Nikkei 225 index climbed 0.5%.

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:

• Epicor Software Corp. (EPIC), up 15% on news it forecast fourth-quarter revenue above expectations.
• Triad Guaranty Inc. (TGIC), up 12%.
• Isle of Capri Casinos, Inc. (ISLE), up 12%.

Biggest percentage losers:

• InfoSpace, Inc. (INSP), down 49%.
• Premier Exhibitions, Inc. (PRXI), down 31%.
• Spectrum Control, Inc. (SPEC), down 15% on news that fourth-quarter earnings were below analysts’ expectations.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices posted losses today following mixed housing news and more mortgage concerns. The small-cap index fell 19.09 points, or 2.64%, to 704.86. The Dow Jones Industrial Average (INDU) lost 238.42 points, or 1.86%, to 12,589.07.

On a year-to-date basis, the Russell 2000 has declined 7.99%, while the Dow is down 5.09% and the S&P 500 has shrunk 5.32%.

Small-cap stocks opened in positive territory and then gained more following news of an announcement at 10 a.m. ET that pending U.S. home sales fell 2.6% in November to a reading of 87.6.

The decline is more than what economists were expecting, but investors apparently liked the fact that the figures for October and September were revised higher.

Additionally, the National Association of Realtors reported that it expects existing-home sales to hold steady during the following months before rising later in the year and improving in 2009.

“On the one hand, we have a pent-up demand from the four million jobs added to our economy over the past two years of sales decline,” said Lawrence Yun, NAR chief economist, in a statement. “On the other, consumers continue to wait for additional signs of market stabilization.”

The Russell 2000 (NYSE: IWM) is falling as investors take a dim view of the state of the U.S. housing market. At 1:53 p.m. ET, the small-cap index was down 3.57 points, or 0.49%, to 720.38. The Dow Jones Industrial Average (INDU) was up 3.41 points, or 0.03%, to 12,830.90.

Stocks have trimmed their morning gains and small caps have fallen in the red following news that Countrywide Financial Corp. (NYSE: CFC), the biggest U.S. mortgage lender, is facing swelling debt-protection costs.

There’s speculation that the Calabasas, Calif.-based company, which had liquidity problems last summer due to the meltdown in the subprime mortgage sector, could file for bankruptcy later this week.

That’s a stark reminder of the depth and size of the mess in the subprime mortgage sector, which began as U.S. home prices started to decline in the second half of 2006, leading to a wave of foreclosures and loan delinquencies.

A number of mortgage lenders have called it quits since then, but Countrywide will potentially be the biggest casualty yet.

That has apparently spooked investors.

Shortly after the start of trading the National Association of Realtors reported that pending U.S. home sales fell a more-than-expected 2.6% in November to a reading of 87.6. The October reading was an upwardly revised 89.9. The figure for September was also revised higher.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices dropped on news that the Fed lowered its target interest rate 0.25%. The small-cap index let go 24.93 points, or 3.15%, to 766.27. The Dow Jones Industrial Average (INDU) lost 294.26 points, or 2.14%, to 13,432.77.

On a year-to-date basis, the Russell 2000 is down 2.69%, while the Dow has advanced 7.68% and the S&P 500 has added 4.31%.

Stocks sank today as investors were apparently disappointed after the U.S. Federal Reserve decided to lower its target for the federal funds rate 0.25% to 4.25%.

“Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending,” the Federal Open Market Committee said at about 2:15 p.m. ET, in a statement accompanying the decision. “Today’s action, combined with the policy actions taken earlier, should help promote moderate growth over time.”

Wall Street was expecting the reduction, with some voices calling on the central bank to act more boldly to prevent the possibility of the U.S. economy falling into recession due to declining house prices and fallout from the meltdown in the subprime mortgage sector.

Small-cap stocks, which opened on a bullish note and were holding on to modest gains, reacted to the news by going on a steep descent.

The Russell 2000 (NYSE: IWM) futures have moved up and the small-cap index is likely to open in positive territory.

The bulls are ready to go on speculation that the U.S. Federal Reserve will cut its target interest rate when it meets in December. The speculation is due to a speech by chairman Ben Bernanke after the close on Thursday, during which he said that uncertainty has increased and the Fed must remain alert.

In economic news, the U.S. Commerce Department reported that consumption increased 0.2% in October, below the rate projected by economists. Consumption added 0.3% in September.

The lackluster performance can be blamed on a slowdown in the labor market, higher energy prices and the seemingly never ending slump in the housing sector.

Investors will also be looking at data on October construction spending, which will be released by the U.S. Census Bureau at 10 a.m. ET. Economists are expecting to see a decline.

Small-cap stocks jumped nearly 3% today, propelled by surprise earnings from Wal-Mart and an easing of credit fears. The Russell 2000 (NYSE: IWM) added 22.06 points, or 2.88%, to 789.15, snapping a two-day losing streak. The Dow Jones Industrial Average (INDU) gained 319.54 points, or 2.46%, to 13,307.09, its first rise in four sessions.

On a year-to-date basis, the Russell 2000 has advanced 0.22%, while the Dow has risen 6.67% and the S&P 500 has added 4.55%.

Trading got off to a bullish start this morning on news that Wal-Mart Stores Inc. (NYSE: WMT) saw a 7.9% increase in third-quarter profit at its U.S. stores, while revenue rose 8.9%.

The result pleasantly surprised analysts and eased fears that the U.S. consumer was cutting back on spending. Americans do about 10% of their shopping at the Bentonville, Ark.-based retailer, which began offering discounts two weeks earlier than last year to lure customers.

Stocks were gaining momentum, with the Russell 2000 adding more than 1% within the first 30 minutes of trading.

The bears had no chance, even after Bank of America Corp. (NYSE: BAC) said that it projects a fourth-quarter pre-tax charge of $3 billion due to its purchase of collateralized debt obligations that have plummeted in value because of the stagnating U.S. housing market. Collateralized debt obligations are loans—such as mortgages—that are pooled together and sold to institutional investors as a package.

The Russell 2000 (NYSE: IWM) is posting gains this afternoon as investors respond to better-than-expected earnings from Wal-Mart and a drop in the price of oil. At 2:17 p.m. ET, the small-cap index had advanced 14.25 points, or 1.86%, to 781.34. The Dow Jones Industrial Average (INDU) was up 223.54 points, or 1.72%, to 13,211.09.

Futures were higher and the day began on a bullish note following news that Wal-Mart Stores Inc. (NYSE: WMT) reported a 7.9% increase in third-quarter profit at its U.S. stores, while revenue rose 8.9%. The increase was primarily due to discounts that began two weeks earlier than last year.

The result pleasantly surprised analysts and eased fears that the U.S. consumer was cutting back on spending. Americans do about 10 percent of their shopping at the Bentonville, Ark.-based retailer.

Stocks’ upward trajectory was not affected by news that Bank of America Corp. (NYSE: BAC) is projecting a fourth-quarter pre-tax charge of $3 billion due to its purchase of collateralized debt obligations. Like many other financial actors, the second largest bank in the United States is taking a hit from fallout of the stagnation in the housing market.

The Russell 2000 (NYSE: IWM) moved lower today on news from Wachovia Corp. (NYSE: WB) of more than $1 billion in losses due to the credit crunch. The small-cap index dropped for the third time this week, retreating 8.52 points, or 1.09%, to 772.38. The Dow Jones Industrial Average (INDU) shed 223.55 points, or 1.69%, to 13,042.74.

On a year-to-date basis, the Russell 2000 has lost 1.92%, while the Dow has advanced 4.56% and the S&P 500 has added 2.62%.

The bears dominated the session today following news that Wachovia Corp. expects to suffer additional losses of $1.1 billion in the third quarter due to collateralized debt obligations.

The Charlotte, N.C.-based bank, the fourth largest in the United States, also said that it will write down collateralized debt obligations of about $1.11 per share for the month of October and expects to see loan losses of over $500 million in parts of the country that have been most severely affected by the slump in the housing sector.

The news comes as the latest reminder that the subprime mess continues to plaque the financial system.

The small-cap futures were pointing south and the Russell 2000 joined the other major U.S. indices in opening with a drop.

There was some upbeat economic news today, coming in the form of a surprise narrowing of the U.S. trade deficit. The Commerce Department reported that the deficit declined 0.6% to $56.5 billion in September, the lowest level since May 2005, as exports increased due to a weak dollar and strong growth overseas. In August the deficit stood at $56.8 billion.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices raced ahead today on news of solid earnings from big players. The small-cap index added 15.28 points, or 1.90%, to 821.39. The Dow Jones Industrial Average (INDU) gained 134.78 points, or 0.99%, to 13,806.70.

On a year-to-date basis, the Russell 2000 has increased 4.31%, while the Dow has added 10.68% and the S&P 500 has gained 8.38%.

Futures were pointing up and trading began in the green following news that Microsoft Corp. (Nasdaq: MSFT) increased its first-quarter net income 23% to $4.29 billion, or $0.45 per share, above the $0.39 per share projected by analysts. The rise was due to a whooping 87% growth in the company’s entertainment and devices segment, primarily due to strong sales of its video game “Halo.”
 
Adding to the upbeat pre-market sentiment was Countrywide Financial Corp. (NYSE: CFC), the largest mortgage lender in the United States, which said that it will return to profitability in the fourth quarter after losing money in the third quarter due to the meltdown in the subprime mortgage sector.

The bulls took control of trading out of the gate and kept their feet to the pedal throughout the session. With positive earnings news grabbing the headlines, the bears decided to sleep.

But there was some negative news, coming in the form of a larger-than-expected drop in October consumer confidence. The Reuters/University of Michigan final sentiment index fell to a reading of 80.9, the lowest level in more than a year. Economists were expecting to see a decline to a level of 82 from 83.4 in September.

Triad Guaranty Inc. (Nasdaq: TGIC), Graham Corp. (AMEX: GHM) and US BioEnergy Corp. (Nasdaq: USBE) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) is posting gains midway though the session, buoyed by earnings news. At 1:34 p.m. ET, the small-cap index had added 8.66 points, or 1.07%, to 814.77. The Dow Jones Industrial Average (INDU) was up 78.12 points, or 0.57%, to 13,750.04.

Trading began on a bullish note as investors responded to news that Microsoft Corp.’s (Nasdaq: MSFT) first-quarter earnings beat Wall Street’s projections. The Redmond, Wash.-based company posted a stunning 87% growth in its entertainment and devices segment, primarily due to strong sales of its video game “Halo.”

Meanwhile, Countrywide Financial Corp. (NYSE: CFC), the largest mortgage lender in the United States, said that it will return to profitability in the fourth quarter and outpace projections after taking a hit in the third quarter due to the meltdown in the subprime mortgage sector this summer.

In small-cap news, industrial products maker Graham Corp. (AMEX: GHM) increased its quarterly profit seven-fold, while Gulf Island Fabrication, Inc. (Nasdaq: GIFI) stumbled after missing analysts’ third-quarter profit expectations.

Elsewhere, the U.S. dollar has fallen to another all-time low against the euro. One greenback can now be exchanged for 0.695 of the currency adopted by 13 countries in the 27-member European Union. This morning the dollar was at 0.698 euros.

The weak dollar is contributing to another rise in the price of oil, which is denominated in the U.S. currency. A barrel of oil now costs $90.99, up $0.53. Earlier in the day the price of oil was closer to $92 a barrel.

The Russell 2000 (NYSE: IWM) is the top performer as the major U.S. indices rise on news of upbeat earnings.

At 10:25 a.m. ET, the small-cap index had gained 9.11 points, or 1.13%, to 815.22. The Dow Jones Industrial Average (INDU) was up 94.78 points, or 0.69%, to 13,766.70.

The small-cap futures were pointing north following news that Microsoft Corp. (Nasdaq: MSFT) reported after Thursday’s close that its first-quarter earnings beat analysts’ expectations, mainly due to strong sales of the videogame “Halo.”  The Redmond, Wash.-based also raised its outlook for the full fiscal year.

Contributing to the upbeat sentiment is Countrywide Financial Corp. (NYSE: CFC), the largest mortgage lender in the United States, which announced that it will return to profitability in the fourth quarter and beat Wall Street’s expectations. The New York-based company also reported a third-quarter net loss, its first in a quarter century, due to the meltdown in the subprime mortgage sector this summer.

Among small-cap companies, Callidus Software Inc. (Nasdaq: CALD) has been left behind after reporting a wider-than-expected third-quarter net loss.

In economic news, U.S. consumer confidence tumbled more-than-expected. The Reuters/University of Michigan final sentiment index fell in October to a reading of 80.9, the lowest level in more than a year. Economists were expecting to see a decline to a level of 82. The index was at 83.4 in September.

Sturm, Ruger & Co. (NYSE: RGR), Triad Guaranty Inc. (Nasdaq: TGIC) and Barrett Business Services, Inc. (Nasdaq: BBSI) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

Shares of Triad Guaranty Inc. (Nasdaq: TGIC) tumbled to a 52-week low after the company was downgraded today by Bear Stearns to “underperform” from “peer perform,” on account of claims that rose at a higher-than-expected pace in the third quarter.

The small cap, which provides private mortgage insurance products to residential mortgage lenders and investors, reported an abysmal third quarter late Wednesday evening. For the quarter ended Sept. 30, 2007, the Winston-Salem, NC.-based firm recorded a net loss of $31.8 million, or $2.13 per share, compared with net income of $19.4 million, or $1.30 per share, for the same quarter in 2006. The mean earnings estimate of six analysts polled by Thomson Financial was for earnings per share of $0.72.

Bear Stearns analyst Michael Nannizzi had estimated a loss of $0.31 per share for the third quarter assuming the company had built $50 million in reserves. Triad reported a loss on reserve-building of almost $80 million. Nannizzi lowered his rating on Triad Guaranty to reflect a much “sharper deterioration” in Triad’s portfolio than originally anticipated.

Primary delinquencies increased upwards of 27% to 7,541 from 5,940 from the second to the third quarter of 2007, according to Nannizzi.  Over the same period, according to Nannizzi, primary claims paid increased roughly 38% to $23.1 million from $16.7 million.

Nannizzi said he’s concerned with the company’s combination of high risk/capital ratio and higher than expected losses. He estimates the company’s risk/capital ratio at almost 18:1, compared with the industry average of below 10 times, and said he believes it would be “prudent” for Triad to remain below 20 times leverage.

The Russell 2000 (NYSE: IWM) is in the green as news of a surprisingly bullish housing report offset generally negative economic reports.

At 10:42 a.m. ET, the small-cap index had gained 2.41 points, or 0.30%, to 813.26. The Dow Jones Industrial Average (INDU) had added 16.67 points, or 0.12%, to 13,691.92.

The small-cap futures were higher before the opening on news that Motorola Inc. (NYSE: MOT) reported its first profit in 2007. The Schaumburg, Ill.-based telecommunications giant also announced a better-than-expected outlook for the fourth quarter.

In economic news, orders for durable goods, which are intended to last at least three years, fell 1.7% in September, according to the U.S. Commerce Department. Economists were expecting a rise of 1.5% following a downwardly revised decline of 5.3% in August.

On the plus side, orders for non-defense capital goods excluding aircraft increased 0.4% after a rise of 1.8% in August. That measure is a key barometer of business spending and today’s reading is a sign that businesses are continuing to spend money on capital equipment despite the uncertain U.S. economic environment.

Elsewhere, the number of U.S. workers applying for jobless benefits fell less than expected for the week ended Oct. 20, the U.S. Labor Department said before the start of trading. Unemployment claims declined 8,000 to 331,000, while economists were calling for a much larger drop of 17,000.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will likely open in positive territory.

The earnings season continues to march on, with attention this morning focused on Motorola Inc. (NYSE: MOT). The Schaumburg, Ill.-based telecommunications giant reported a third-quarter profit, its first in 2007, and announced a better-than-expected outlook for the fourth quarter.

In other news, orders for durable goods, which are intended to last at least three years, fell 1.7% in September, according to the U.S. Commerce Department. Economists were expecting a rise of 1.5% following a revised decline of 5.3% in August.

Silver lining came in the form of a 0.4% increase in orders for non-defense capital goods excluding aircraft, after a rise of 1.8% in August. That measure is a key barometer of business spending.

At 10 a.m. ET, the U.S. Commerce Department will release the numbers on new homes sales in September. Economists are expecting to see a decline.

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:

• Transcend Services Inc. (TRCR), up 17% on news of record third-quarter earnings.
• iRobot Corp. (IRBT), up 14% on news of a higher 2007 revenue outlook.
• ZOLL Medical Corp. (PLCE), up 12%.

Biggest percentage losers:

• Spartan Motors Inc. (SPAR), down 19% on news of a decline in third-quarter profit.
• Heelys Inc. (HLYS), down 11% on news of a lower third-quarter outlook.
• Triad Guaranty Inc. (TGIC) down 10% on news of a third-quarter loss.

The Russell 2000 (NYSE: IWM) and Dow lost big today as news of disappointing earnings and residual credit fears scared investors. The small-cap index suffered the biggest loss of the major U.S. indices, falling 26.24 points, or 3.18%, to 798.79. The Dow Jones Industrial Average (INDU) retreated for the fifth time this week, letting go 366.94 points, or 2.54%, to 13,522.02.

On a year-to-date basis, the Russell 2000 has increased 1.44%, while the Dow has added 8.34%.

The Russell 2000 futures were flat before the start of trading but the index opened in negative territory on news that Charlotte, N.C.-based Wachovia Corp. (Nasdaq: WB), the fourth largest U.S. bank, reported a 10% decline in its third-quarter profit due to difficult credit market conditions.

The bank also said that that it recorded a provision for credit losses of $408 million, about four times the level during the same three months of 2006.

The news came as an unpleasant reminder that the turmoil in the subprime mortgage sector, which peaked during summer months, is still relevant and capable of spreading shockwaves throughout the financial sector.

The subprime mortgage sector started bleeding earlier this year after U.S. housing prices went into reverse in the second half of 2006. The ongoing housing recession has been identified by observers as the biggest risk to the economy.

Triad Guaranty Inc. (Nasdaq: TGIC), Nanophase Technologies Corp. (Nasdaq: NANX) and Isramco, Inc. (Nasdaq: ISRL) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

The Russell 2000 (NYSE: IWM) is posting steep losses as investors react to news of poor earnings and more credit fears. At 1:37 p.m. ET, the small-cap index was down 13.78 points, or 1.67%, to 811.25. The Dow Jones Industrial Average (INDU) had retreated 2098.26 points, or 1.5%, to 13,680.70.

The bears have been running the show ever since Wachovia Corp. (Nasdaq: WB) reported before the opening that its third-quarter profit fell 10% due to difficult credit market conditions.

Charlotte, N.C.-based Wachovia, the fourth largest U.S. bank, also said that it recorded a provision for credit losses of $408 million, about four times the level during the same three months of 2006.

Contributing to more poor earnings news was heavy equipment maker Caterpillar Inc. (NYSE: CAT), which announced that quarterly profit missed analysts’ forecasts. The company forecasts that the ongoing slump in the U.S. housing sector will result in a 12% drop in sales of machinery and engines in 2007. Peoria, Ill.-based Caterpillar expects international sales to pick up the slack.

In commodities news, the price of oil has eased $1.43 to $88.04 a barrel. The recent spike in oil prices was partially attributed to tensions along the border between Iraq and Turkey and the weakness of the U.S. dollar.

The Russell 2000 (NYSE: IWM) edged out a gain while the Dow Jones Industrial Average (INDU) fell after news of weak earnings from Bank of America (NYSE: BAC) and Pfizer (NYSE: PPE) reminded investors that the subprime crisis is negatively impacting corporate earnings. The small-cap index added 0.14 points, or 0.02%, to 825.03. The Dow shed 3.58 points, or 0.03%, to 13,888.96.

Bank of America Corp.’s third-quarter net income plunged 32% due to write-downs on leveraged buyout loans and higher credit loss provisions. The firm’s third-quarter profit was $3.7 billion, or $0.82 per share, below analyst expectations of $1.06 per share and from $5.4 billion, or $1.18 per share, during the same period of 2006.

In other bearish news, Pfizer Inc.’s third-quarter net income plummeted 77%, due to a $2.8 billion charge related to the company exiting its insulin product Exubera. The company made the decision to exit Exubera because of intense competition from generic competitors. Pfizer’s third-quarter net income totaled $0.76 billion, or $0.11 per share, below Wall Street projections of $0.52 per share and from $3.36 billion, or $0.46 per share, a year earlier.

At 8:30 a.m., the U.S. Department of Labor said the number of Americans filing first-time applications for state unemployment benefits increased beyond economists’ expectations. For the week ended Oct. 13, the number of initial jobless claims rose to 337,000, above a forecast 315,000 and compared with 309,000 during the prior week.

Triad Guaranty Inc. (Nasdaq: TGIC), NovaStar Financial Inc. (NYSE: NFI) and Avici Systems Inc. (Nasdaq: AVCI) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

The Russell 2000 (NYSE: IWM), along with the other major U.S. indices, is treading lower this morning after disappointing earnings from Bank of America Corp. (NYSE: BAC) refreshed investors’ concerns that the subprime mortgage debacle is materially cutting into corporate earnings and the economy.

At 10:37 a.m. ET, the small-cap index had shed 1.33 points, or 0.16%, to 823.56. The Dow Jones Industrial Average (INDU) was down 25.61 points, or 0.18%, to 13,866.93.

Bank of America’s third-quarter net income plunged 32% on account of write-downs on leveraged buyout loans and higher credit loss provisions. The firm’s third-quarter profit was $3.7 billion, or $0.82 per share, below analyst expectations of $1.06 per share and from $5.4 billion, or $1.18 per share, during the same period of 2006.

Adding to bearish earnings news, Pfizer Inc.’s (NYSE: PFE) third-quarter net income plummeted 77%, due to a $2.8 billion charge related to the company exiting its insulin product, Exubera. The company made the decision to exit Exubera because of intense competition from generic competitors. Pfizer’s third-quarter net income totaled $0.76 billion, or $0.11 per share, below Wall Street projections of $0.52 per share and from $3.36 billion, or $0.46 per share, a year earlier.

Earnings from Bank of America and Pfizer overshadowed Nokia Corp.’s (NYSE: NOK) strong third-quarter results. The mobile device maker reported an 85% increase in third-quarter profit, on a 26% increase in the number of phones shipped in the quarter.

As stocks sold off, treasuries rose for the fourth straight trading session for the first time since August, as the effects of the credit crisis reared its ugly head on reducing earnings at some of the largest U.S. banks. The yield on the two-year note fell to 3.92% at 10:06 a.m.

The odds for a quarter-percentage point Fed rate cut at the Oct. 31 meeting rose to 68% odds from a 54% chance Wednesday. The increased odds of a Fed rate cut sent the dollar tumbling to a record low against the euro. The dollar fell to $1.42 against the euro at 11 a.m. ET.

A rollercoaster ride of trading today ended with the Russell 2000 (NYSE: IWM) gaining ground while the Dow fell after news of a temporary rise in the price of oil. The small-cap index added 1.54 points, or 0.19%, to 824.89. The Dow Jones Industrial Average (INDU) shed 20.40 points, or 0.15%, to 13,892.54.

On a year-to-date basis, the Russell 2000 has increased 4.76%, while the Dow has added 9.11%.

Stocks began on a bullish note following news of better-than-expected third-quarter earnings from tech sector heavyweights Intel Corp. (Nasdaq: INTC) and United Technologies Corp. (NYSE: UTX), but quickly shed those gains halfway through the trading session as the price of oil briefly rose to an intraday high above $88 a barrel.

Investors got jittery around noon ET, after the Turkish parliament overwhelmingly approved a military attack into northern Iraq in order to fight Kurdish rebels, causing the price of oil to clear $88 a barrel before moderating down to $87.40. A cross-border spat could disrupt Iraq’s oil supplies.

Nevertheless, small caps managed to sneak into positive territory just before the close, while the Dow languished in the red.

Meanwhile, U.S. housing starts fell to the lowest annualized pace in 14 years in September. The U.S. Census Bureau announced today that housing starts fell to 1.191 million, missing economists’ projections of 1.285 million. The level in August was an upwardly revised 1.327 million of privately owned housing units.

The stagnation in the housing sector seems to have no end in sight, as building permits, an indicator of future construction plans, also fell.

Triad Guaranty Inc. (Nasdaq: TGIC), WebMD Health Corp. (Nasdaq: WBMD) and ACA Capital Holdings, Inc. (NYSE: ACA) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers:

The Russell 2000 (NYSE: IWM) has erased its morning gains after news of a fresh spike in the price of oil. At 1:32 p.m. ET, the small-cap index was down 3.53 points, or 0.43%, to 819.82. The Dow Jones Industrial Average (INDU) had shed 74.14 points, or 0.53%, to 13,838.80.

The price of oil continues to set record highs, up $0.54 to $88.15 a barrel on news that the Turkish parliament overwhelmingly approved a military attack into northern Iraq in order to fight Kurdish rebels.

Military conflict could disrupt supplies from Iraq, the world’s third largest exporter.

Stocks started falling soon after 12 p.m. ET, the early gains made after major tech players reported better-than-expected earnings quickly disappearing.

Meanwhile, U.S. President George Bush said today that homeowners need help in order to avoid foreclosures, but spoke out against a bailout of lenders whose loose lending practices contributed to the current housing recession.

Speaking of the housing recession, before the opening the U.S. Census Bureau announced that housing starts for the month of September fell to an annualized pace of 1.191 million, the lowest in 14 years. Economists were expecting a rate of 1.285 million units following August’s upwardly revised level of 1.327 million privately owned housing units.

Triad Guaranty Inc. (Nasdaq: TGIC), National Security Group (Nasdaq: NSEC) and NovaStar Financial Inc. (NYSE: NFI) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage gainers: