Tag - NYSE:F

Consumer spending trends consistently higher for the most part, and has been trending consistently higher since the second quarter of 2009.

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.

Let me ask a simple question. Would you like to buy into one of the biggest sectors of the U.S. economy at 20 year lows?

I would. Housing typically contributes well in excess of 10 percent of U.S. total production, and home equity tends to be the largest part of a household's net worth. Now, home values are down, households have less equity, and homebuilders see a dim, but improving, future.

Last year General Motors Company filed for bankruptcy and collapsed into the government’s arms. With around $170 billion in debt in 2009 and only $82 billion in assets, the bankruptcy filing kicked off a major restructuring effort.

On November 17^th this restructuring will culminate with an initial public offering (IPO).

At the time bankruptcy was announced, Chief Executive Frederick Henderson said the move would “...give us another chance”. President Barack Obama also supported the move, saying GM would emerge a “...stronger and more competitive company”.

Now, almost a year and a half later, General Motors appears to be getting its second chance.

You've probably heard the quote from the great entrepreneur Henry Ford who once commented, "People can have the model-T in any color, so long as it's black".

 

The man's unique ability to combine innovation with simplicity is symbolic of the great entrepreneurial spirit that helped America become the world's leading superpower. Unfortunately, in modern America, the U.S. automobile industry has faltered and once great companies like Ford (NYSE:F) and General Motors have fallen from grace.

 

Ford also once said, "Nothing is particularly hard if you divide it into small jobs." That's the mentality that is needed right now for U.S. auto companies and parts suppliers if they are going to succeed in the 21^st century.

Stocks generally continued their upward trajectory and extended the rally today. The Dow closed up 33.63 points today to finish at 9,320.19; the Nasdaq finished up 2.70 points at 2,011.31; and the S&P 500 held over 1,000 to finished 1,005.61, up 2.98 points.

 

The Russell 2000 index finished up 4.38 point at 570.16.
 

Leading small-cap price gainers include Xerium Technologies (NYSE:XRM), up 33%; Georgia Gulf Corporation (NYSE:GGC) up 45%; Central Pacific Financial (NYSE:CPF) up 32%; and YRC Worldwide (Nasdaq:YRCW) up 30%.

 

Declining small-caps include WPT Enterprises (Nasdaq:WPTE) down 26%; The Phoenix Company (NYSE:PNX) down 19%; and Mellanox Technologies (Nasdaq:MLNX) down 17%.

 

*****Oil prices are slightly lower this morning. That should mean stocks will trade lower today as well. And while many are saying the fundamentals of this economic recovery do not support current prices for stocks or oil, I wouldn't get too excited about an imminent trade-worthy decline.

 

More likely, we will see any dip get bought by the bulls. And I doubt any dip will last for more than two days…

 

*****Sometimes, the financial markets can be very simpleminded--even downright dumb. And I believe now is one of those times. The federal government has committed to pouring as much cash into the economy as is necessary to keep prices from falling too much. And that may be all we need to know.

 

After all, banks can make money when they have the ability to borrow at 0.5% interest. They can make more money in fees when the government is sponsoring mortgage loan modifications. And when the government forced banks to raise more capital by selling stock, Goldman Sachs (NYSE:GS) may have made as much as $1 billion in profit from fees associated with secondary offerings.

 

Car companies and banks can make money from the Cash for Clunkers programs. Auto sales rose 13% in June, helped by this program. Heck, Ford (NYSE:F) posted its first rise in sales since 2007!

 

*****Some estimate that 40% of the world's wealth was lost in the wake of Lehman's collapse and the financial crisis. The only way to get that money back is to earn it. But companies aren't really earning money the old-fashioned way -- government policies are focused on allowing companies to do just that.

 

Sure, it's a form of trickle down economics. And while the long-term success may be questionable as there are always unintended consequences, make no mistake about the effect on the short-term. Assets are being reflated. Home values, stock prices, commodities - all can be expected to move higher.

 

*****Thanks to everyone who has sent in submissions for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt contest. In case you don't know, my first book is coming out on September 14, 2009. As part of the marketing plan for my book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks, I'm holding a T-shirt contest. I want you to be the one who comes with the slogan for The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks T-shirt. 

 

Submissions have already been posted to the Small Cap Investor Facebook page and we're holding this contest open for just a little longer to get your idea. Post your submission on the Small Cap Investor page on Facebook

Small Cap Investor page on Facebook  send it to tshirt@smallcapinvestor.com. We're keeping this open until Sunday, August 9th.

 

Everyone who submits a T-shirt slogan will get a 30-day, 100% complimentary trial to my SmallCapInvestor PRO advisory service. The winner 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. Voting on the slogan will begin shortly after the 9th.

 

*****The Managed America video conference is coming up next Monday, August 10 at 6:00 P.M. We'll cover the game plan for making profits in an America with sustained high unemployment, weak growth, weak banks, higher taxes, and excess government regulation. You don't want to miss this. It's free to attend and you can register HERE.

 

Ian Wyatt

Editor

Daily Profit

 

P.S. Tomorrow is NewsletterAdvisors.com Wednesday where we interview one of the country's top investment experts. We're fortunate to have Carla Pasternak of High-Yield Investing and High-Yield International, two of the leading publications for dividend and income investments. Don't miss tomorrow's edition of Daily Profit with our in-depth interview with Carla.

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 . . .

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 higher into mid-session, bolstered by a big acquisition on the pharma front, which sparks hope that small caps are undervalued overall. If there are deals being done for large caps, then there should be attractive acquisitions for a bevy of smaller companies. In addition, a surprisingly strong showing on existing home sales also provided a lift to the market. At 12:53 p.m. ET, the Russell 2000 (NYSE:IWM) was up 8.96, or 2.02%, at 453.32.

Buyers also were happy to see that bellwether stock General Electric Co. (NYSE:GE) retained its credit rating despite slumping profits last quarter. And massive bank Barclays said that they did not need additional capital to weather the current storm, which provided a boost to the financial sector. The Financial Select Sector SPDR Fund was up 2.2% at midday.

Energy stocks were on a roll today, up 2.9%, mirroring a 3% climb in cash crude oil prices. Energy prices and stock market direction have been trading hand-in-hand of late, so the rise in equities clearly supported crude oil. In addition, OPEC cuts appear to be attracting a higher compliance rate than usual, providing some offset to concern about weak demand and hefty reserves.

This morning’s existing home sales report came in with a rise of 6.5% to a rate of 4.74 million units, quite a bit better than the forecast of 4.40 million, according to the National Association of Realtors. In addition, the Conference Board said that an index of leading economic indicators rose 0.3%, which also topped the forecast for a slide of 0.3%. The home sales data were particularly positive for the market, as many believe that this whole mess started with a housing bubble and won’t turn around until the housing market shows that it has bottomed. Later this week we’ll get data on new home sales to add to the overall housing picture, but the bulk of home . . .

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 ...

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 . . .

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 . . .

Small-cap stocks extended the morning decline into midday trading, with retailer stocks leading the way down. Additional pressure came from sinking energy stocks, a weak tone in some commodity names, tumbling automakers and modest declines in financial shares as well. At 12:31 p.m. ET, the Russell 2000 (NYSE:IWM) was down 15.82, or 3.25%, at 470.44.

Last weekend was supposed to serve up one final heroic shopping push into the Christmas holiday, but awful weather in several key markets around the country didn’t exactly help save the day. Analysts at DA Davidson today said that this shopping season could be the poorest in some 25 years, since the recession back in the early 1980s. The S&P Retail Index was off some 4% at mid-session.

Crude oil prices resumed the downward path after showing some upside potential earlier this morning. Crude oil was off more than 3%, slipping back below $41 a barrel as Chinese imports tumbled to the lowest level of the year in November. Energy stocks were off about 2.5%.

Automakers were finding out that the glow from Friday’s $13.4 billion dollar White House bailout had a short shelf-life among investors. General Motors Corp. (NYSE:GM) was down 16% at midday, while Ford Motor Co. (NYSE:F) was off 11%. Credit Suisse analysts lowered its rating on GM to “underperform” and cut their price target to $1, saying that GM’s credit could be entirely wiped out if it complies with restructuring mandates in the bailout fine print.

Restaurants were a hot item on Friday, but were a little cool this morning, perhaps tied to profit-taking and also from the ongoing worries about the economy. Among small-cap movers, eatery chain Lubys Inc. (NYSE:LUB) was down 17%. Other small caps on the decline included Jones Apparel Group Inc. (NYSE:JNY) off 15% and Browne & Co. Inc. (NYSE:BNE), down 15% as the marketing communications firm gave back a huge chunk of Friday’s rally. Oxford Industries Inc. (NYSE:OXM) was down 14% as the apparel maker turned south along with other apparel and retail names after a strong performance last week. On the upside, MAP Pharmaceuticals Inc. (Nadsaq:MAPP) remains a popular small-cap share on the rise after . . .

Small-cap stocks pushed lower, pressured by concerns about corporate profits, worries about late holiday spending results and ongoing jitters about the economy and the credit crisis. Losses were limited by optimism about stimulus plans for 2009 and persistent bargain hunting from market watchers who believe the bottom has already been made. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 6.42, or 1.32%, at 479.84.

Some early enthusiasm was tied to news that President-elect Obama will ramp up the job-creation goal of his stimulus package to 3 million new jobs from 2.5 million. The market is already hoping that Obama’s stimulus plans will help spark an economic recovery as 2009 progresses.

Walgreens (NYSE:WAG) posted a smaller-than-expected quarterly profit and announced plans to trim new store opening goals. WAG shares were off 4.1% shortly after the opening. It’s still early to get a good picture for shopping results in the United States over this past weekend, but with winter storms in the Midwest and Northeast, it might be difficult for retailers to come up with great results. Early this morning, the S&P Retail Index was down 0.5%.

Crude oil prices were choppy into the stock market open, but copper prices rose 4% in London trading, bolstered by a dip in the U.S. dollar against the euro and by news of a big jump in China imports during November. The greenback remained down against the euro, which could underpin various commodity markets today.

Citigroup analysts said that they remain underweight on utilities, autos and real estate investment trusts. Carmakers were a source of weakness for overseas markets . . .

Small-cap stocks pushed higher Friday, gaining a boost from merger activity in the banking sector, a jump in restaurant shares and a lift from news of a rescue plan for automakers. All of those factors help offset sloppy action in commodities, and worries about retailer sales into a key shopping weekend. The Russell 2000 (NYSE:IWM) closed up 7.09, or 1.48%, at 486.26 and is now down 37% for the year. Meanwhile, the Dow is off 35% for 2088 and the S&P 500 is down 40%.

Small caps were noticeably strong relative to large caps, fueled by M&A activity in the banking area. “I think that the M&T Bank Corp. (NYSE:MTB) purchase of Provident Bankshares Corp. (Nasdaq:PBKS) has caused investors to see value in small-cap banks and the purchase came at a nice premium,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview. PBKS shares jumped 60% on the news.

Kalivas also said that positive profit news from restaurant operator Darden Restaurants Inc. (NYSE:DRI) provided a lift to the restaurant sector, which was reflected through impressive positive breadth in small-cap eateries. Small-cap restaurants on the move today included Cheesecake Factory Inc. (Nasdaq:CAKE) which jumped 12%; Brinker International Inc. (NYSE:EAT) up 29% as the firm completed a sale of the Macaroni Grill; The Steak n Shake Co. (NYSE:SNS), up 12%; and Papa Johns International Inc. (Nasdaq:PZZA) up 8%.

In addition, Kalivas said that the general atmosphere of cheaper gasoline and a mini-wave of refinancing activity provides a supportive element to the small-cap universe.

As for today’s quadruple witching expirations of stock index futures, options and single stock futures, Kalivas said that “pinning” action (which refers to . . .

Small-cap stocks opened higher, bolstered by news that the White House extended a rescue loan to beleaguered automakers, which sparked money flow into stocks and away from credit markets. Commodities are on weak footing this morning and credit ratings for a bevy of financial firms were lowered overnight, which could limit some buying enthusiasm. Investors will be on the lookout for pockets of unexpected volatility today as “quadruple witching” expirations take place. At 9:53 a.m. ET, the Russell 2000 (NYSE:IWM) was up 11.67, or 2.44%, at 490.84.

The White House this morning announced plans to extend a bridge loan to automakers, tapping TARP funds for $13.4 billion. The deal includes various restrictions, including executive pay caps and will allow a second draw from TARP funds in February. Investors embraced the news, erasing a 1% slide in stock index futures overnight in anticipation of the announcement. Shares in General Motors Corp. (NYSE:GM) were up 13% shortly after the open, while Ford Motor Co. (NYSE:F) was up 8%. GM said they would hold a press conference at 11 a.m. ET.

Speaking of TARP issues, Treasury Secretary Henry Paulson said this morning that he will go to Congress to ask for the second half of the TARP funding, which means that $350 billion has been spent and they want to start rolling out the second $350 billion soon. Paulson said he would go to Congress when “everyone agrees” it is the right time, in a clear attempt to avert rancorous political situations this time around, as it seems unlikely Congress will simply rubber stamp the funds like they did the first time around.

Today marks “quadruple witching” expirations for various stock derivatives products, which could stir a little extra volatility into the pot. There is always a sense of the unknown into a big year-end expiration like today, but my general rule . . .

Small-cap stocks were slightly lower early this morning, pulled down by a rash of weak profit reports and gloomy outlooks amid ongoing concerns about the economic environment. Energy stocks were a soft spot for the market as crude oil tumbled to fresh four-year lows. At 10:05 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.24, or 0.20%, at 485.35.

The Philly Fed report came in at 39.3, which was up from last month’s reading, but still slightly below the consensus forecast. The leading indicators report was down 0.4%, which was in line with projections.

Earlier this morning ahead of the opening, the weekly claims report came in at 554,000, which was in line with market projections, but still awful historically. The four-week moving average on claims rose to 543,750, which is the highest level since December 1982. Continuing claims edged down 4.384 million, down from 4.431, which is a mildly positive development – but again, these numbers are still among the highest in a generation and the overall employment picture in the United States is expected to get worse over the next couple of months.

Bullish traders will say that all the dreadful economic news is a known factor and is already priced into the market. What’s more, most of the profit news has been awful as well, but is also subject to the “been there, done that” market response. This morning, analysts at UBS lowered their forecast for 2009 profit estimates for the . . .

Small-cap stocks edged into positive ground into midday trading on support from commodity names, but in general the market appeared to be in a “breather” mood after Tuesday’s manic upside push when Federal Reserve policy makers surprised the market with aggressive interest rate cuts. At 12:20 p.m. ET, the Russell 2000 (NYSE:IWM) was up 0.03, or 0.01%, at 482.87.

In addition to the natural pause in bullish enthusiasm after such a memorable rally Tuesday, today’s profit reports were lackluster at best and pretty much anything tied to homes, homebuilders, home furnishings or real estate was struggling. Real estate investment trusts (REITS) were among the poorest performers so far today, as were houseware and home furnishing stocks. Companies such as Newell Rubbermaid Inc. (NYSE:NWL) and Leggett & Platt Inc. (NYSE:LEG) were taking a hit, down 28% and 10%, respectively.

Financial stocks were a drag on the market today, with the Financial Select Sector SPDR Fund off about 1.7%. Citigroup Inc. (NYSE:C) was down some 4.7% and Bank of America Corp. (NYSE:BAC) was off about 2.9%.

Crude oil prices held relatively steady despite a hefty 2.2 million barrel a day output cut pushed through by OPEC members. Skepticism about OPEC’s ability to hold the line on production might account for some of the lack of rally response in energy markets, as well as concerns that slumping global demand remains on the radar screen for some time to come. Energy stocks were slightly higher even though crude oil prices were calm; commodity markets in general likely found underlying support from yet another dramatic slide in the U.S. dollar, which was down 2.2% against the euro and off 1.3% against the yen, setting 13-year lows against the latter currency.

Looking at individual S&P sectors, the top performers included health care facilities, coal stocks, commercial printers, railroads, mining and metal stocks and steel companies. Interestingly, the saga of a bailout package to automakers seems to have simmered down a tad amid all the FOMC hoopla, but Tuesday afternoon Treasury Secretary Henry Paulson said that automakers would get funds as quickly . . .

Small-cap stocks started out the week with a whimper as bleak manufacturing data, sinking financial and homebuilder shares and money flow away from equities took a toll on the market. The Russell 2000 (NYSE:IWM) closed down 15.86, or 3.39%, at 452.57 and is now down 41% for the year, while the Dow is off 35% and the S&P 500 down 41%.

Bank and financial shares have been a persistent drag on the market in recent days. The big news on the banking front today was an analyst downgrade on JP Morgan Chase and Co. (NYSE:JPM), which pulled down the rest of the financial universe. JPM shares lost 7.4% on the day, and the Financial Select Sector SPDR was off 4.1%. The market also was reluctant to buy bank and financial stocks ahead of earnings releases from Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS); both firms lost some 1% on the day. Treasury market yields tumbled some 2% on the day, indicating that money was moving toward safe-haven outlets in concert with the weak tone in equities.

A fresh batch of economic data today was predictably awful, with the New York Manufacturing Survey sinking to a record low and the industrial production report showing a decline of 0.6%. That said, both of the reports were actually better than forecast and a much worse reading on manufacturing overnight in Japan didn’t stop the Nikkei from rising 5.2%, so it would be presumptuous to blame today’s . . .

Small-cap stocks extended the morning slide into midday trading, with financial, tech and homebuilder shares overpowering gains in energy and commodity names. Analyst downgrades for key companies in the financial and technology arenas played a role in magnifying worries about consumer spending and the never-ending credit crisis. At 12:21 p.m. ET, the Russell 2000 (NYSE:IWM) was down 11.08, or 2.36% at 457.35.

On the banking/financial front, analysts downgraded JP Morgan Chase and Co. (NYSE:JPM) and the firm was one of the major drags on large-cap indices, sinking some 6.8% and spreading selling in financial firms throughout the market. Analysts also downgraded Apple Inc. (Nasdaq:AAPL), which tumbled nearly 4% and sparked a slide throughout the technology arena. The tech-laden Nasdaq 100 was down 2.2% at mid-session, about double the percentage losses seen in the S&P 500 and Dow.

The Treasury Department announced it was reviewing information from the auto industry and providing regular updates to the White House, which kept enthusiasm for some kind of bailout for U.S. automakers running high. Even though the overall market was falling today, shares in General Motors Corp. (NYSE:GM) were up 5.5%, while Ford Motor Co. (NYSE:F) was up 3.6%.

Small-cap stocks pushed higher Friday in a miraculous recovery from a dreadful start. Investors embraced talk that the White House would find a way to funnel money into empty automaker coffers after Senate Republicans squashed a proposed aid package Thursday night. Tech stocks, real estate investment trusts, homebuilder and construction materials shares helped lift the Russell 2000 (NYSE:IWM) to a higher close, with the index closing up 17.22, or 3.82%, at 468.43. For the year, the Russell is now down 39%, while the Dow is off 35% and the S&P 500 is down 40%.

Today’s action started out under tremendous stress, with stock futures reeling overnight after Senate leaders rejected a $14 billion bailout bill for automakers. In addition, the commodities run that powered recent upside action looked tired, financial shares were still soft and news of a massive $50 billion investor fraud was in the mix. The market was poised for a 4% drop on the open, and who knows just how ugly things might have gotten … but that’s when the White House made it clear that they would throw a lifeline to drowning automakers. If the Senate wouldn’t approve a bridge loan to automakers without micromanaging their businesses and carving more concessions out of the union, then the Bush Administration would try to keep car makers afloat for a few weeks while the politics got sorted out. Turns out, it was a lifeline that rescued the stock market from what looked like a very troubling day. That said, General Motors Corp. (NYSE:GM) stock still slipped 4.3% today, while Ford Motor Co. (NYSE:F) was up 4.8%.

Technology shares were a clear source of strength today for the market, with big-time firms like Apple Inc. (Nasdaq:AAPL), up 3.4% and Intel Corp. (Nasdaq:INTC), up 5.2% setting the tone for a strong day in the tech arena.

The big event today was supposed to be the monthly retail sales report, which would most likely remind all of us just how bad spending is as we finish up the holiday season. As it turned out, the retail sales report was just as bad as predicted — which actually means it was good news. If you’re keeping tabs, the headline retail sales figure came in at minus 1.8%, right in line with the forecast. But the . . .

Small-cap stocks were holding ground into mid-session, buoyed by hope for a White House rescue for automakers and by a bounce in tech stocks, real estate investment trusts, homebuilders and gold stocks, which helped counter ongoing weakness in the financial arena. At 12:32 p.m. ET, the Russell 2000 (NYSE:IWM) was up 4.18, or 0.93%, at 455.39, even though the Dow and S&P 500 were both in negative territory.

On the auto front, the White House appears ready to throw a lifeline to cash-strapped firms via the TARP funds, which have previously been utilized primarily in the banking arena. President-elect Obama also stated that he was disappointed that the Senate shot down a $14 billion bailout bill and the hoped the White House and Congress will find a way to help beleaguered U.S. automakers. As it became apparent some type of emergency bridge loan or funding proposal would more than likely take place quickly, shares in both General Motors Corp. (NYSE:GM) and Ford Motor Co. (NYSE:F) rallied hard off the morning lows. In fact, Ford climbed into positive ground, after sinking some 26% earlier in the day.

The resilient rise in small caps was a welcome sign after stock index futures tumbled 4% overnight when the Senate first squashed the automaker bill. Real estate investment trusts (REITS) were on a serious roll today, with small-capper Prologis (NYSE:PLD) jumping 26%, reversing a big slide from Thursday. Small-cap firm Apartment Investment & Management Co. (NYSE:AIV) was up nearly 7% and Developers Diversified Realty Corp. (NYSE:DDR) jumped 11% -- all of these companies were hammered Thursday and were in correction mode today.

On the homebuilder front, small-cap firm Centex Corp. (NYSE:CTX) rose 4%, KB Home (NYSE:KBH) was up 4% as well and Lennar Corp. (NYSE:LEN) was up 5%. Homebuilder shares were a hot ticket last week when mortgage applications shot to the highest point since February, but they cooled off this week until . . .

Small-cap stocks started out the day in dramatic fashion, with a jolting opening decline taking place on news that the Senate shot down a bill authorizing $14 billion in bridge loans for the beleaguered U.S. auto industry. However, the opening slide wasn’t as bad as it looked about an hour before the open, as it appears like the White House will try to come to the rescue of automakers. In fact, the Nasdaq actually traded in positive territory briefly about 30 minutes after the open, and small caps jumped nearly 10 handles off the morning low. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.73, or 0.38%, at 449.51.

Much of the investor focus today will be on trying to decipher just what the Senate’s rejection of the automaker bailout will mean to the market. There have been a few outlier “gloomsday” scenarios that predict that a GM bankruptcy would send the stock market another 20% below the recent bear market lows as a domino effect ripples through the economy. There are still some options in play however that could avert a bankruptcy, including the Bush Administration trying to open up TARP funds for automakers. The initial reaction was predictably awful for General Motors Corp. (NYSE:GM) and Ford Motor Co. (NYSE:F), which were down 30% and 25%, respectively right after the open, but then were rapidly improving from the worst levels after the Treasury Department said they were ready to prevent an automaker failure.

The retail sales report headline figure came in at minus 1.8%, which was on target with analyst projections. That said, minus 1.8% is still a terrible figure and marked the fifth consecutive monthly decline. It should be noted, however, that a major downside force on retail sales was a whopping record decline in gasoline prices of 14.7%. In tandem with the retail sales release, the producer price index for November came in at minus 2.2%, which was a little lower than the projection for a decline of 1.8%. As . . .

A bleak picture of the nation’s employment picture sparked a solid opening decline for small-cap stocks. Bearish momentum was furthered by a batch of weak profit reports and outlooks for various companies, but another firm tone in commodities offered up support. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was down 4.03, or 0.85%, at 472.37.

The weekly unemployment claims report headline figure came in at 573,000, which swamped the forecast of 525,000 and which was a cycle high so far in the economic malaise. What’s more, it also marked the highest claims number in 26 years. Even more scary is that the number of continuing claims, which tracks people who are out of work and just can’t get a job, rose to 4.429 million, way above the 4.1 million forecast and the highest point since November 1974. It has been fashionable to rally on “bad” economic news lately amid ideas that the market will be forward looking and rally away from the lows long before the news bottoms out, but it is difficult to look past numbers as bad as today’s claims report – especially if you don’t see things getting better for some time to come.

“Although the labor force is much larger now that it was 25 years ago, the number of people actually covered by unemployment insurance has declined substantially,” Steven Wood, chief economist with Insight Economics, said in an email. “More importantly, the deterioration in initial claims, continuing claims, and the insured jobless rate has been as bad as they were during the 1981-1982 recession, which was the most severe in the post-World War II period. Although these data are not for the survey week, they suggest another substantial decline in payroll employment and another jump in the unemployment rate for December.”

The International Trade report also came out this morning and the deficit widened to $57.19 billion, well above the forecast for a deficit of $53.5 billion. The U.S. dollar extended overnight losses against the euro after the report, with the . . .