Tag - NYSE:GE

The tragedy in Japan points to the negative potential impact of living in the nuclear age: dangerous byproducts from energy production, such as radiation. But it's not just a reactor meltdown in Japan that needs to be monitored - there are also many types of routine waste generated today in the U.S. that need to be properly disposed of.

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

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

Merger and acquisition activity is lifting the bid for many consumer stocks. In the past few weeks, Fortune Brands (NYSE: FO) said it would focus on its spirits business, including Jim Beam, and split off its consumer goods and sports products, making them ripe for acquisition. And an investor group headed by Kohlberg Kravis Roberts is looking to unlock the value in Del Monte Brands (NYSE: DLM), which it's acquiring for $5.3 billion.

Essentially, the company provides a secure storage solution for personal medical records. As Chad noted, this is an industry that is receiving a ton of support from the Obama Campaign. President Obama said he wants all medical records to be digitized by 2014. The push has created huge opportunities for digital medical record companies like General Electric.

But as you would expect, I prefer the approach of investing in the smaller players since they represent the greatest profit potential. It's hard for even a big market opportunity to move the needle on General Electric's stock given its $15.9 billion market cap, and the fact that digital medical records are just a very small portion of the company's overall business.

I really like the industry, but Medefile is simply too small for me. The company is in a great market that is likely to grow in the next couple of years, so it's worth keeping an eye on it. But for me the risks are too high at the moment to make an investment.   

Stocks closed higher today as Meredith Whitney's comments on Goldman Sachs (NYSE:GS) helped to lift financials, including Bank of America (NYSE:BAC), which she indicated as being inexpensive. Previously she'd been down on financials and very accurate with her assessment concerning their exposure to sub-prime mortgages.

The Dow closed up 185 points today to end at 8,332. The Nasdaq and S&P 500 followed suit to close at 1,793 and 901, respectively.

The Russell 2000 closed at 492, up 11 points.

Small-cap stocks showed leadership behind Territorial Bancorp (Nasdaq:TBNK) of Honolulu, Hawaii, which was up 49% to close at $14.94. Shares in TBNK started trading today as part of an initial public offering with the opening price set at $10.

Other small-cap gainers include PMI Group (NYSE:PMI) up 31%; iBasis (Nasdaq:IBAS) up 28% on news that Dutch telecommunications firm Koninklijke KPN issued an offer of $1.55 per share or roughly $48.2 million to acquire 44 percent of the shares outstanding in iBasis; and American International Group (NYSE:AIG) up 24%.

Decliners were lead by China-based baby formula producer American Dairy (NYSE:ADY) down 44% after issuing news that it had reduced guidance by stating that Q2 revenue would be increase only 10% against the year-prior period.

American Dairy had previously grown by nearly 200% after the company was untainted by the scandals surrounding other Chinese dairy producers over contaminated baby formula that left six infants dead and millions of gallons of milk considered suspect and destroyed.

Other decliners include CardioNET (Nasdaq:BEAT) down 34%; Sinclair Broadcast Group (Nasdaq:SBGI) down 21%; and American Axle & Manufacturing (NYSE:AXL) down 15%.

*****A few weeks ago, Treasury Secretary Geithner had to go to China to assure our largest creditor that their investment in the U.S. dollar was safe. Now he's off to Saudi Arabia and United Arab Emirates for another round of "strong dollar" propaganda.  
Of course, it's not an easy task to convince foreign governments that the U.S. wants a strong dollar when interest rates are at zero and we're selling tens of billions in Treasury bills virtually every week. You may recall Geithner's assurances elicited laughter from a group of Chinese college students when he made the strong dollar pledge there.  

If college students know the score, you can bet everyone else does, too.  But Treasury auctions have been met with plenty of demand, and that's a good thing.

*****Fed Chief Bernanke is expected to reveal to Congress just how he plans to reverse his stimulative monetary policy next week. The Fed has expanded the money supply by about $1 trillion, cut rates to zero and doubled the assets on its balance sheet.  

In normal times, this would be highly inflationary. But these aren't normal times. Were it not for the Fed's action, the U.S. economy would be broken even more than it already is.  

Now, normal times will return. And how the Fed plans to reel in liquidity when the economy starts to grow again is critical. The potential for runaway inflation is real, and the Fed will have to be just as diligent at fighting inflation as it was fighting deflation.  

*****Goldman Sachs (NYSE:GS) received an upgrade from the very same banking analyst that predicted collapse of mortgage-backed securities, Meredith Whitney.  
Upgrading Goldman is easy. The bank is practically a subsidiary of the U.S. government. But the timing is interesting, given that Goldman reports earnings before the bell tomorrow.  

And speaking of earnings, this is a big week for some important companies. In addition to Goldman, we get Intel (Nasdaq:INTC) after the bell tomorrow. Thursday, we'll hear from JP Morgan (NYSE:JPM), Google (Nasdaq:GOOG) and IBM (NYSE:IBM). Then Friday, we get General Electric (NYSE:GE), Bank of America (NYSE:BAC).  

Tech and financials - the anchors for the U.S. economy will be reporting this week. Investors will be watching these early earnings reports closely. Much of the rally of the past few months can be attributed to investors' faith in companies meeting Q2 earnings, even if expectations were substantially lowered. Any bad news from these bellwether companies and the market could turn. We'll be watching closely. 

*****As if earnings weren't enough, there's a full slate of economic data coming out this week, too. Tuesday, it's the Producer Price Index (PPI) along with retail sales and business inventories. 

Wednesday, we get the Consumer Price Index (CPI), the Empire Manufacturing Survey from New York state, capacity utilization, industrial production, crude inventories and the minutes from the last FOMC meeting. 

Thursday, it's initial unemployment claims and the Philadelphia Fed. 
And finally, on Friday, we get building permits and housing starts for June.   
Whew! That's going to be a lot of data to review.  

*****On January 15, my Top Stock Insights advisory service released its Predictions 2009 special issue. This issue was our blueprint for profits with mid- and large-cap stocks as we headed into the new year.  

In that issue, I outlined the case for oil, gold, commodities and biotech/healthcare stocks. And we took 51% profits on an oil stock, 25% on a gold stock, another 25% on a commodity stock and we're still holding three biotech/healthcare double-digit winners in the portfolio. 

In other words, our expectations for the year led my readers to some nice gains this year, and there's more to come... 

Now, I'm all set to release an update to that special Predictions issue that will get us through the rest of this year with more solid gains. It comes out on Wednesday, and if you'd like to get my blueprint for profits for the rest of 2009, please click here. Or go to topstockinsights.com. 

*****Also, if you missed TradeMaster Daily Stock Alerts technical analyst Jason Cimpl's weekly video chart analysis, here's that link again. 

Stocks are seesawing this afternoon about housing construction data tumbled to a record low.

At 2:57 pm ET, the Russell 2000 (NYSE:IWM) is up 0.63%, while the Dow is up 0.27% and the S&P 500 is up 0.63%.

The Commerce Department reported this morning that the construction of homes and apartments fell 12.8% last month to the lowest pace on records dating back a half-century. Analysts were expecting a rise.

Small-cap semiconductor company Kulicke and Soffa Industries Inc. (Nasdaq:KLIC) is up 28% this afternoon after it increased its revenue outlook for the third fiscal quarter. Formula Systems (Nasdaq:FORTY) has climbed 23% after reporting a rise in Q1 profit, and Lifeway Foods Inc. (Nasdaq:LWAY) is 20% after reporting record first-quarter 2009 revenues and earnings.

*****Stocks are down this morning after a “surprise” drop in new housing starts and a fall in new building permit applications. This shouldn’t really be a surprise. After all, we are in a recovering economy, and that means progress will come in fits and starts. And since housing was the underlying cause of the last run-up and a major contributor to the market slide, there should be no question that we’ll see “surprises” like this going forward.

Recall that we’ve seen some upside surprises from the housing market in recent weeks. Yesterday’s big move was attributed, in part, to an improvement in a homebuilders confidence survey. A little bad news to balance out the good should be expected.

Still, the data from April represents a new all-time low for housing starts on an annualized basis. Year over year, housing starts are down 54%, and the housing market was already headed down then.

If there is a bright side, it’s in the understanding that economic sectors, like the stock market, have to bottom out before they can improve. We could be seeing the housing market bottoming out now.

Bell-weather homebuilder Toll Brothers (NYSE:TOL) reports tomorrow. Toll Brothers is a major player in new home construction so look to them as a bellwether . . .

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

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

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

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

A 34% gain in seven days

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

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

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

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

Stocks opened in the green and are continuing their positive trot through midday, buoyed by Tuesday’s news that beleaguered Citigroup (NYSE:C) is operating at a profit.

At 12:27 pm ET, the Russell 2000 (NYSE:IWM) was up 1.39, or 0.38%, at 369.14, while the Dow was up 0.02% at 6,927.77, and the S&P 500 was up 0.22% at 721.18.

Like Tuesday, financial stocks are leading the markets higher today on the Citigroup news, while tech stocks are also seeing a boost after large-cap benchmark Hewlett-Packard’s rating was upgraded.

While the market seems to be in recovery mode, don’t relax just yet. Analysts are warning that the rally will be short-lived and that there remain deep problems etched within the banking industry.

Small-cap stocks trending upward today include On Assignment, Inc. (Nasdaq:ASGN), 23% higher on lower-than-average volume, and YRC Worldwide Inc. (Nasdaq:YRCW), which is 11% higher despite making Moody’s “Bottom Rung List.” Axsys Technologies (Nasdaq:AXYS), a manufacturer of defense surveillance and imaging systems, is up 34% after the small cap put itself up for sale in an auction that drew a first round of bids earlier this week.

Global Markets Up …

Finally, early strength for stocks on Tuesday didn’t turn to weakness. In fact, . . .

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 fell hard on the opening, pulled down by losses in overseas markets, and ongoing worries about corporate profits as we move through the heart of the earnings season. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) down 7.95, or 1.80%, at 434.90, slipping to the lowest point since Dec. 5.

Stock markets in Europe and Asia were in retreat mode overnight, which only added to the selling bias early on in U.S. trading. Across the pond, U.K. data showed the biggest economic contraction since 1980 and the first recession since 1991. The European Stoxx 600 and the Australian equity index slumped to five-year lows, which heightens worries here that major U.S. indices may need a hard retest of those key November lows.

From a charting perspective, there is mild support today for the Russell near 424, but the key downside point is now near 416, which represents a double bottom on daily charts from early December, which was the first critical bounce pullback off the rally from the November lows. If the market starts to stabilize this afternoon, then resistance will be seen approaching 440, then up near 450.

After dreadful economic data on housing starts and unemployment claims Thursday morning, today’s focus reverts back to the rush of big earnings reports. While there have been occasional bright spots like Apple and Google, most of the news has been dreary. Even when a company like General Electric Co. (NYSE:GE) meets the estimate like they did this morning, investors are leery to embrace the news. Shortly after the open, GE was down 3.6%. And more often than not lately, the profit reports are decidedly bearish, such as with Harley Davidson Inc. (NYSE:HOG) or Advanced Micro Devices Inc. (NYSE:AMD) as the motorcycle maker and chipmaker . . .

U.S. stocks are expected to open sharply lower, pulled down by sinking equities in Europe and Asia. In the United Kingdom, economic contraction is the worst since 1980, and the European Stoxx 600 and the Australian stock indices are now at or near 5-year lows. In Asia, chipmakers and electronics firms were taking a hit overnight and here in the United States the latest batch of profit reports was spotty, but overall gloomy. The Dow was expected to open down 130 points, while the Russell 2000 (NYSE:IWM) was seen down about 1.8% near 434.80.

General Electric Co. (NYSE:GE) is often seen as the “national bellwether” for stocks because the company operates in such a variety of businesses. GE’s profit report before the opening today met the forecast and the stock was up in pre-market trading, but it didn’t seem to provide much of a lift to the overall market. Google Inc. (Nasdaq:GOOG) actually beat the estimate and was up a tad ahead of the open, but a majority of the profit stories mirrored the somber news coming out of firms like Harley Davidson Inc. (NYSE:HOG) as the motorcycle maker said it would shutter some operations and layoff 1,100 employees.

Crude oil prices were off about $0.40 a barrel heading toward the open, which could weigh on energy stocks. Foreign currency markets were making sizable moves overnight, with the U.K. pound at long-term lows against the dollar, most FX markets at long-term lows against the yen and the dollar up about 1.6% versus the euro at six-week highs, which could weigh on physical commodity markets this morning.

Looking at the chart structure, this morning’s opening appears set to test a . . .

Small-cap stocks pushed higher Tuesday, as investors tried to balance ongoing worries about the economy and corporate profits versus hope for fresh stimulus funds. Short-term oversold conditions likely played a supportive role as well. The Russell 2000 (NYSE:IWM) closed up 4.99, or 1.06%, at 473.79 and is now down 5.1% for the year, while the Dow is off 3.7% and the S&P 500 is down 3.4%.

As the market lurches forward into the earnings season, the picture remains gloomy with Alcoa Inc. (NYSE:AA) kicking off the proceedings Monday after with a larger-than-expected loss and big-cap bellwether General Electric Co. (NYSE:GE) taking a hefty 5.6% hit today amid negative analyst comments. In general, no one is expecting earnings to be a positive story, but if things veer too far south of an already dour forecast, it could generate enough worries to send the market back toward a retest of the lows. All that said, in some ways it’s actually a positive to see the overall market holding up reasonably well today given the slide in GE shares.

Despite the seeming preponderance of negative input again today, small caps held in well throughout the session, perhaps hinting that some investors are willing to take a shot at riskier fare given the recent pullback off the highs. In addition, energy and commodity stocks often have a powerful directional bias on small caps and those sectors were on better footing today.

Crude oil prices closed out the day with a modest gain of $0.19 a barrel, which was off the U.S. trading session highs, but still quite a bit better than losses seen in overseas action. U.S. crude finished up 0.5% at $37.78, underpinned by talk from Saudi officials that they had cut production beyond the scope of previous announcements and by a brutal cold front pushing into the northern Midwest that could spike up . . .

Small-cap stocks finished off an up and down session with a jolting afternoon decline, as pressure from tumbling commodity stocks, weak profit reports and money flow away from equities toward credit instruments offset support from airlines and insurance companies. The Russell 2000 (NYSE:IWM) closed down 7.42, or 1.53% at 479.17 and is now down 37% for the year. Meanwhile, the Dow is off 35% for 2008, and the S&P 500 down 40%.

The market tried to stand tall through another batch of dreary economic data, but came up empty in the afternoon. The weekly unemployment claims report showed that 554,000 Americans filed for unemployment insurance last week, which might have been a drop from last week’s 26-year high, but was still a gloomy number in its own right. The four-week moving average for claims rose to 543,750, which itself ranks as the highest level in more than a quarter of a century. Data on mid-east manufacturing and leading economic indicators was predictably sour, but not a surprise.

Speaking of the economy, Federal Reserve Bank of Dallas President Richard Fisher said that the Fed “will not shy from pursuing every practicable means of supporting the functioning of financial markets and stimulating the economy back to a steady state by employing new techniques that fit the current circumstances.” What that means is that the Fed isn’t necessarily out of bullets just because interest rates are now effectively zero. Fisher said that the Fed would expand purchases of mortgage backed securities if that seems like a productive path. He also predicted that GDP would shrink 4% to 5% in the fourth quarter and that contraction was possible through the first half of 2009, with unemployment possibly rising beyond 8%. Fisher said that recent moves are starting to gain traction in credit markets but intimated that operations are still far from normal.

The yield on benchmark 10-year notes approached 2% today, reaching the lowest point in 50 years as investors continue to gobble up credit products as a safe-haven in a difficult environment for stocks. The 10-year yield (which moves inverse . . .

Small-cap stocks extended the rally into midday trading, boosted by a bounce in financial and energy shares after those sectors were drummed during Monday’s massive rout. Oversold conditions, bargain hunting and optimism about a bailout for beleaguered automakers fueled the upside pop. At 12:30 p.m. ET, the Russell 2000 (NYSE:IWM) was up 20.74, or 4.97%, at 437.81.

Now that the Russell pushed through the first short-term resistance line at 433.50, the next test will be up at 442 if the market can hold above 433.50 through the afternoon. A pullback should find mild support along 424, then down at 413.50 if things deteriorate.

General Electric Co. (NYSE:GE), seen as a proxy for the overall economy because of its diverse group of products, was up 10% at mid-session, providing a lift not just to large caps, but a ripple through to small caps as well.

In addition, commodity markets were on a rising tide today after getting clobbered Monday, which bolstered commodity shares. Even though crude oil prices were hovering near steady levels, energy stocks were up about 2.5%. Among S&P sectors, REITS, wireless telecoms, broadcasting firms and diverse financial services companies were the best performers. The ISE Homebuilders Index was up 7% also a sign of relief after all of the economy worries pounded stocks Monday. Airline stocks were up 5.5%, outperforming the broad market, with small-cap carriers US Airways Group Inc. (NYSE:LCC) up nearly 8% and another small-cap firm Alaska Air Group Inc. (NYSE:ALK) also up about 8%.

Automaker shares remained higher into midday as investors waited word on progress for an aid package to stave off potential failure for the Big 3. Ford Motor Co. (NYSE:F) submitted a plan calling for $9 billion in loans. The plan would also cancel global executive bonuses, would cut dealers and include development of electric cars. Ford stock was up 10% on the news, leapfrogging (on a percentage basis) General Motors Corp. (NYSE:GM), which was leading Ford overnight, but which . . .

Small-cap stocks pushed higher on election day, lifted by strong commodity and financial stocks and relief that a long, yet historic political campaign was about over. The Russell 2000 (NYSE:IWM) closed up 7.47, or 1.39% at 545.97, the sixth consecutive daily gain, something that hasn’t happened all year. For 2008, the Russell is down 29%, while the Dow is off 27% and the S&P 500 is down 31%.

Today’s rally clearly favored large caps as investors still have a tinge of risk aversion that tends to favor bigger companies. Also, the rally in energy stocks had a more powerful influence on large caps as many energy companies have sizable market caps. For large caps, it ranked as the biggest election day rally since 1984 when incumbent Ronald Reagan carried 49 of 50 states, with runner-up Walter Mondale carrying only his home state of Minnesota and the District of Columbia.

Within the energy arena, the Energy Select Sector SPDR Fund jumped 6.3%, mirroring a big surge in crude oil prices. Crude gushed 10% on talk that Saudi Arabia was slashing production. In addition, commodities like crude oil benefited from a sizable slide in the U.S. dollar, which makes dollar-priced goods more attractive. The greenback tumbled more than 300 basis points, or some 2.4% against the euro, triggering a buying spree in all sorts of commodity goods.

The Commodity Research Bureau Index of 19 physical markets shot 5.3% higher today, with gains seen in everything from gold, sugar, coffee, grains, cattle and copper. The latter is seen as a key economic benchmark and copper prices jumped 6.4% in U.S. trading. In addition to the macro trends on the dollar, strong earnings for soybean processor Archer Daniels Midland Co. (NYSE:ADM) fueled a supportive tone for beaten down commodity stocks. ADM shares rallied some 14%.

Financial shares also were a big part of the story today, with the Financial Select Sector SPDR Fund up 5%, boosted by yet another decline for inter-bank lending . . .

Small-cap stocks extended the morning rally into midday action, boosted by gains in commodity and financial stocks and some relief that the end was in sight for the political uncertainty surrounding elections in the United States. At 12:32 p.m. ET, the Russell 2000 (NYSE:IWM) was up 7.10, or 1.32%, at 545.60.

Even another downbeat reading on manufacturing activity today didn’t stall buying enthusiasm. Just a day after the ISM Manufacturing Survey came in at 38.9% -- well below the 50% contraction line -- today’s factory orders data came in at minus 2.5%, below the forecast for a drop of 1.5%. Although the market initially pulled back on the factory orders report, the rally quickly resumed and stretched out through mid-session.

Commodity shares were on a roll today, with agriculture products, metal and mining stocks, coal and gold all seeing sizable gains. The Energy Select Sector SPDR Fund was up 6% and crude oil prices shot 8% higher on reports that Saudi Arabia slashed output. Commodity stocks in general were lifted today by a sizable drop in the U.S. dollar, which tumbled some 2.8%, or more than 350 basis point against the euro, which makes goods priced in dollar terms more attractive. Among the big gainers were gold, copper and corn.

Soybean processor Archer Daniels Midland Co. (NYSE:ADM) jumped 17% on solid earnings, and other large-cap names getting an earnings lift today included MasterCard Inc. (NYSE:MA), which jumped 14% and lifted rival firm American Express Co. (NYSE:AXP) along for the ride, with AXP up about 5%.

Economic bellwether stock General Electric Co. (NYSE:GE) rose 8% . . .

Small-cap stocks are expected to open solidly lower, pulled down by a global stock market rout that has spread to all asset classes as investors dump everything in favor of cold, hard cash. The Russell 2000 (NYSE:IWM) was down about 2.5% in after-hours trade, which suggests an open near 487.

Around the world, a global stock market index tumbled some 4% to five-year lows and is now off 43% in 2008. LIBOR, or interbank lending rates, pushed higher again, paying no heed to the cheaper money trying to be pushed into the system by a round of recent central bank rate cuts around the world. Crude oil futures tumbled 5% to the $81 level, which is a one-year low, and even bonds in Europe and Japan were down, underscoring the fact that typical “safe-haven” ports were not in use at the crest of this storm.

Looking around the globe, Japan shares were down 3% to a five-year low, while stock market trading was halted in Russia, Iceland, Romania, Ukraine and Indonesia and about half the market was shuttered in Italy.

President Bush is slated to make an address at 10:00 am ET in an effort to reassure investors and talk about the recent emergency measures. Meanwhile, finance chiefs for the G7 are slated to meet in Washington today.

Individual stocks to watch early today include Thursday’s big name — Morgan Stanley (NYSE:MS) tumbled some 25% Thursday and was off another 6% overnight as credit rating agencies said they were reviewing the rating status for . . .

In a familiar refrain, small-cap stocks resumed the sell-off Tuesday, sinking to session lows in the afternoon following a somber economic outlook from the Federal Reserve chief that only served to remind investors that the problems facing the market aren’t going to go away anytime soon. The Russell 2000 (NYSE:IWM) collapsed 36.96, or 6.20% at 558.95, which marked the lowest daily close since September 2004 and the second-worst one-day decline of the year. The Russell is now down 27% for the year, and off 34.7% from the highs, while the Dow is down 28.7% for 2008 and the S&P 500 is off 32.1% for the year.

The day actually started out with promise, as a volatile pre-opening volley landed in a bullish corner when the Federal Reserve said that they would open a window for commercial paper loans, which would help corporations fund day-to-day operations. At one point shortly after the opening, small caps were up more than 1% from Monday’s close, but the buying interest quickly unraveled as financial stocks were sputtering and as the market clearly didn’t see the commercial paper facility as a panacea for all the current economic ails. In addition, the market is gorged on supply right now and without time to recover from the General Electric (NYSE:GE) issuance last week there comes word that Bank of America Corp. (NYSE:BAC) will raise $10 billion capital.

What’s more the outlook for profit growth is “glum” and investors aren’t eager to step in and buy until they see more earnings releases out of the way, Nick Kalivas, vice president of financial research with MF Global, said in an email. When BAC pre-released bad earnings news overnight, slashing dividends and raising capital, it left a bad taste in the entire financial arena. BAC shares shed 25% today, bank stocks lost 8% and the overall financial sector was also down some 8%

This afternoon, when Federal Reserve Chairman Ben Bernanke said that downside risks to the economy were “rising” it sparked a new wave of selling in equities even though the Fed chief also intimated that they were ready to cut rates again if needed; a concept granted more weight after the release of the FOMC minutes . . .

Small-cap stocks pushed lower Friday, as optimism over government approval for a massive bailout of financial bad debt gave way to somber economic data on the employment picture. It was a strange session from a market movement standpoint, but in the end the Russell 2000 (NYSE:IWM) stumbled 18.27, or 2.87%, to 619.40, the lowest weekly close since May 2005. Even more startling is that the Russell 2000 collapsed 12.1% this week, clearly one of the largest one-week debacles in history. For the year, the Russell is down 19.2%, while the Dow is off 22.1% and the S&P 500 is down 25.1%.

In some ways, it was an unusual session as the market initially shrugged off the negative employment report, instead rejoicing about a large banking merger deal between Wells Fargo (NYSE:WFC) and Wachovia (NYSE:WB). In addition, stock traders appeared to be basking in the glow that the House would certainly OK the rescue plan this time around. Earlier this week, House Republicans shocked the market by narrowly rejecting the $700 billion “Paulson Plan” but with the economy careening toward recession and a couple of tax break sweeteners added to the deal, there was little choice in an election year from lawmakers but to embrace (perhaps with gritted teeth) the rescue plan.

In typical “buy-the-rumor, sell-the-fact” market action, equities rallied into the House vote, then promptly reversed course and sold off in the afternoon. There was some sense that if the market weren’t so oversold and if talk wasn’t circulating that a potential emergency rate cut by the Federal Reserve might be in the works that the slide would have been even greater.

As for the employment report, 159,000 non-farm jobs were shed in September, the largest one-month decline in some five years, while the unemployment rate held steady at 6.1%. The market was looking for a loss of 100,000 jobs, so the number was worse than feared, but there were “whisper” numbers ahead of the release that were even worse. The bad news is that most economists are predicting the next two months will be even more painful as the economy deals with the credit crisis and the recent loss of huge financial firms. So, from a price standpoint today, . . .

Small-cap stocks started off the day in negative territory and were never able to recover, even though large-cap stocks pared losses significantly from the intraday lows. Anxiety over the latest version of the financial rescue plan, soft economic data, sluggish consumer, technology and commodity stocks weighed down the Russell 2000 (NYSE:IWM), which slipped 7.99, or 1.18%, to 671.59. For the year, the Russell is down 12.3%, while the Dow is off 18.3% and the S&P 500 is down 20.9%.

The Senate is slated to vote later this evening on a new version of the $700 billion bailout plan, with additions to bank deposits that are insured and tax breaks. There is a strong sense among market watchers that some version of a rescue plan will be approved —  probably as soon as this weekend — but there are also growing fears that the bailout alone won’t fix all the economic ails facing not just America, but also the world.

General Electric Co. (NYSE:GE) plunged after the bell this morning following analyst downgrades overnight. GE is seen as a bellwether for the economy, and when that company is struggling, it can create a downward ripple throughout industrial and consumer stocks. However, after billionaire investor Warren Buffett said he planned to invest $3 billion in GE, the stock did rally off the lows. For the day, GE was off about 4%.

Most of the recent twists and turns in the stock market have been tied to the massive proposed bailout plan, but today economic data started to make a dent in the investor psyche — perhaps stirred by the realization that the big jobs report comes out Friday morning. An early take on the employment situation from private surveys didn’t exactly paint a great picture. Even though the ADP Employment survey was on the low side of the forecast, a report on layoffs by Challenger, Gray & Christmas Inc. showed a 7.2% jump in layoffs last month and a rate that was 33% above year-ago levels. What’s more, analysts at Challenger said that layoffs in the financial sector . . .

After kicking off the year’s spookiest month sharply lower, small caps continue to spiral downward, dragged down by the uncertainty surrounding a vote in the Senate today on the proposed $700 billion bailout plan. 

At 12:33 p.m. ET, the Russell 2000 (NYSE:IWM) was down 9.61, or 1.41%, at 669.97.

The Senate’s vote carries great weight, as the House voted down a similar version of the bailout bill on Monday. The market rallied Tuesday on hopes that a bailout plan of sorts will be passed soon; however, that rally has faded today, as uncertainty over the bill’s passage has become more prominent.  The Senate’s version of the bill would permit the Federal Deposit Insurance Corp. to temporarily increase the amount of insurance it currently offers depositors should banks fail. The Senate will vote on the bill after sunset today due to observance of the Jewish New Year, Rosh Hashanah.

Given that the status of passage of a bailout plan is in limbo, credit markets remain on lock down. Libor, which spiked to 6.875% on Tuesday from 2.569% on Monday, has pulled back today to 4% and change midday. The “Libor” rate was at the highest point since January and the eurozone equivalent was at 14-year highs. Investors continued to pour into treasuries as a safe haven, sending prices higher and yields lower.

“From tax break extenders to alternative energy to an increase in FDIC insurance for deposits up to 250k to authority to suspend mark-to-market accounting, this bill is going to pass the Senate when they vote on it tonight,” Andy Busch, global foreign exchange strategist for BMO Capital Markets, said in an email. “If the U.S. House of Representatives brings this bill up again for a vote, it will pass [because] there’s no way Nancy Pelosi will bring up a bill that will fail because she will lose her job and so will many Democrats in the election. Congress has an extremely low approval rating from the voters now and anything can easily shift sentiment to the other side.  I believe that as soon as Pelosi announces a vote, the deal is done.”

Lackluster economic news added to the glum on Wall Street. The ISM Manufacturing Survey came in well below the projection of 49.8 at 43.5. The Street was also focused on the ADP Employment survey, ahead of the big employment report on Friday. The ADP survey registered a decline of 8,000 jobs in August, which was better than the forecasted plunge of 60,000. Though better-than-expected, August’s number was revised downward slightly and traders understand that there is a disconnect between the ADP number and the Labor Department’s upcoming data. A consensus of economists is forecasting the Labor Department will report decline in non-farm payrolls of 100,000 and an unemployment rate of 6.1%. ...

Small-cap stocks opened lower, pulled down by profit-taking from hot money traders who caught the big rally Tuesday, a batch of soft private employment reports and reticence ahead of Washington’s latest vote on the financial bailout package. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.65, or 1.27%, at 670.94.

Although the market is starting to take more notice on the economic data front ahead of Friday’s big jobs release, the lion’s share of attention is still squarely on the surprisingly uncertain world of politics and the proposed $700 billion bailout of Wall Street after House Republicans voted down a bill authored by the Republican administration. The latest version of the bill — with new “extenders” included, is up for a Senate vote later today. Although nothing is certain in politics, especially in an election year, there is a sense among market watchers that some version of the rescue plan will be approved by the end of the week.

As for the economic reports already in hand this morning, stock index futures appeared to briefly extend overnight declines after the ADP Employment survey showed a decline of just 8,000 jobs last month, which was better than the forecast for a slide of 60,000. Even though the number would seem supportive, August was revised downward slightly and traders are well aware that the ADP number has not been tracking well with the Labor Department release, which is slated for Friday morning. A consensus of economists is forecasting the Labor Department to show a decline in non-farm payrolls of 100,000 and an unemployment rate of 6.1%.

In other economic news, the ISM Manufacturing Survey came out at 10:00 a.m. ET, and the headline figure was at 43.5, which was well below the projection of 49.8. The dollar gave up some of its overnight gains after the weak ISM figure, interest rates pushed higher and Fed funds futures edged above a 50% chance for a . . .

Small-cap stocks are expected to open lower, giving back some of Tuesday’s big gains amid trepidation ahead of a Senate vote later today on the latest version of the $700 billion financial rescue plan. The Russell 2000 (NYSE:IWM) was off about 0.7% in after-hours trading, which would translate to an open near 674.75.

In company news overnight, analysts downgraded General Electric Co. (NYSE:GE) and their shares tumbled 2.3% in after-hours trading, adding to the nervous tone into today’s session. GE is often seen as a bellwether stock for the economy.

The ADP National Employment Report said that payrolls declined by only 8,000 jobs in the latest month, which was much better than the projection for a decline of 60,000. The market is looking for a decline of 100,000 in non-farm payrolls on Friday’s Labor Department report, and the ADP result has not tracked well with the actual jobs release in recent months.

Also, ahead of the opening, an employment survey by consulting firm Challenger, Gray & Christmas Inc. said planned layoffs for U.S. companies rose 7.2% in September from the previous month and were up 33% from year-ago levels. The firm also said that it could take several weeks or even months for the fallout from September’s Wall Street turmoil to fully be impacted on employment numbers. These private employment surveys help set the stage ahead of Friday’s big monthly Labor Department . . .

Small caps remain in the green near their intra-day highs mid-session, snapping a three day losing streak, as hopes that lawmakers are near agreement on the $700 billion bailout plan cheered investors.

At 12:40 p.m. ET. the Russell 2000 (NYSE:IWM) was up 12.70, or 1.82%, to 710.46.

Investors are sending stocks higher today, as passage of the bailout plan looks more likely. President Bush addressed the nation on Wednesday night in an attempt to rally national support for the plan and called a meeting today with Congressional leaders. The administration and the republicans have conceded to democrats’ amendments surrounding caps on executive compensation and judges’ ability to change the value of the toxic mortgages. Still, issues remain on the table — most notably how to stagger the cost of the plan. Passage of the plan would help thaw the frozen credit markets and enable banks to value assets tied to mortgages.

“Despite the increasingly testy exchanges in Congress, I still assume that some close approximation of the plan (with amendments) as currently being discussed will be agreed and become law next week,” Don Straszheim, vice chairman of investment bank Roth Capital, said in an email. “If this effort would come completely unraveled and stalled out, not impossible, my assumption is we would see a financial sector meltdown almost immediately of monumental proportions. Enough people seem to hold similar views that the ‘failure-to-pass’ outcome seems implausible.  It really is an insurance policy given the state of expectations at present.” 

Though the two day testimony for the $700 billion financial bailout plan is complete, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson will remain on Capitol Hill to testify before the House Committee on financial services on the government bailout of mortgage giants Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE).

While equity markets were higher, treasuries are saying otherwise. Treasuries continued to see yields of unprecedented lows, in a sign that investors demand next to nothing for a safe haven for their short-term cash. The one and three-month Treasury bill yields were both negative at minus 0.38% and minus 0.65% respectively. However, the 2-year and the 10-year were both lower, as their yields were higher midday at 2.1% and 3.8% respectively. (Prices move inversely to yields.)...

Small-cap stocks have sunk mid-session, as the market continues to await details of the proposed government bailout plan and the new banking landscape on Wall Street. 

At 12:38 p.m. ET, the Russell 2000 (NYSE:IWM) was down 19.09, or 2.53%, at 734.65.

Though when initially announced the bailout was cause for celebration on Wall Street, as traders wait for the details of the deal the bears have found their place again. The administration’s leaders on the bailout plan have been meeting with congressional leaders today, who support the plan. President Bush said that failure to act on the bill would have broad consequences beyond just the pain on Wall Street, but that he was confident the legislation would move forward. Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke are expected to brief Congress on the economy Wednesday.

“Last time I checked, there’s no provision in the U.S. constitution to turnover the country’s check book to one plan, one department, and one man,” BMO Capital’s Andy Busch said in an email. “This is a huge leap of faith and I suspect that leaders of Congress and the Presidential candidates will urge caution or act cautiously. This is the time for action, but not the time to essentially restructure the entire financial system of the country that has worked well up until we had 1% interest rates. There are other solutions and ideas that need to be considered. Remember, this is not an RTC type situation where the government already had the bad assets put to them via the FDIC and then had to figure out what to do. This is a takeover of choice.”

In the mean time the banking landscape continues to change on Wall Street. Investment banks Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) said Sunday that they will be converted into commercial banks effectively ending Wall Street’s legacy of independent investment banks. The move will create easier access to credit, will enable them to better organize their assets as well as shore up their leveraged and riskier businesses in light of the now dead short-term financing markets. Investment banks thrived off of short-term financing for the past five years. Now that the leverage is obsolete, the oxygen is gone and the banks have no choice but to change their ways or to cease to exist.  The new move; however, will also create greater oversight from the Federal Reserve.

“It will be interesting to see whether Goldman and Morgan continue in the top ranks of businesses we historically have associated with investment banking,” said Bill Wilhelm, equities professor at the University of Virginia’s undergraduate business school and co-author of the recent book Investment Banking: Institutions, Politics and Law. ...

Small-cap stocks edged lower on the opening, weighed down by concerns over just how the financial rescue plan will play out, and by jitters that special-interest concessions to the bill could block passage. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 12.60, or 1.67%, at 741.15.

The bill also looks inflationary in nature, which carries a whole extra burden on the economy and consumers. Inflation talk has been shuffled into the background in recent days because of the financial crisis, but crude oil has been climbing, the dollar is sinking and fixed income investments are under pressure.

Crude oil prices were on the rise again this morning, and have been on the rise in the backdrop of all the commotion surrounding the government’s bailout plans for U.S. financial institutions. Meanwhile, the dollar was getting clobbered this morning, sinking some 1.1% against the euro and 0.8% versus the yen.

In addition, Treasury futures were sinking — not because of money flow into stocks — but because of concerns about the inflationary aspects of the rescue plan, and because of fears that credit instruments will battle against a mountain of new supply to pay for the government’s decision to mop up bad mortgage debt. Gold was also up some 2% this morning, and other commodity markets such as coffee and cocoa were also on the rise. Grains were seen trading sharply higher as well.

Back to the financial drama unfolding, the market will wait for more details on the rescue package and the Congressional take on things. Federal Reserve Chairman Ben Bernanke will speak about the financial markets Tuesday at 10:00 a.m. ET, which will likely be a key moment for market watchers. Earlier this morning, President Bush said that failure to act on the bill would have broad consequences beyond just the pain on Wall Street but that he was confident the legislation would move forward.

Amid the turmoil, Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS) announced over the weekend that they would shift into bank holding status, effectively ending Wall Street’s legacy of independent investment banks. The move will allow the firms easier access to credit and swing them under the Fed’s regulatory arm. MS shares soared some 14% early this morning amid . . .

Medical device maker Vital Signs Inc. (Nasdaq:VITL) is up 25% in pre-market trading today after General Electric Co. (NYSE:GE) announced it would buy the company for $860 million. Under the terms of the deal, Vital Signs shareholders will receive $74.50 in cash for each share they own. The companies expect the sale to close by the end of 2008. Vital Signs will be incorporated into GE Healthcare’s Clinical Systems division.

Ahead of the opening today, shares of Totowa, N.J.-based Vital Signs are at $72.50 at 8:25 a.m. ET, up $14.50 from Wednesday’s close. During the past year, shares have ranged from $45.06 to $61.20.

It’s not always easy to figure out which horses to back in the exploration and production sector as oil and gas prices remain at high levels. Analysts are trying hard to keep up with the wide array of companies, but have trouble covering all promising prospects.

One company that’s pulling ahead of the pack is GeoResources, Inc. (Nasdaq:GEOI). The small cap, which has properties in Wyoming, North Dakota, along the Gulf of Mexico and has targeted Oklahoma for expansion, was No. 31 on Fortune Small Business’s list of the 100 fastest-growing small companies last month.

It has other fans waiting in the stands. In June, GeoResources once again tapped into General Electric Co.’s (NYSE:GE) deep pockets when it partnered with GE Energy Financial Services to spend up to $90.5 million to acquire and develop new properties in Oklahoma. GeoResources and its predecessor companies have partnered with the GE unit twice before.

C.K. Cooper initiated coverage in February and subsequently upgraded its rating on July 1 to a “buy” earlier this month after the GE deal and a new operating report from the company. Analyst Joel Musante raised his NAV range for the firm to $20.91 to $23.12 per share, from $18.39 to $21.11, and raised the target price to $22 from $20.

In the Oklahoma deal, GeoResources functions as general partner with the GE unit and will boost its share of the income from the properties to 35% from an initial 2%, once capital costs are covered and certain hurdles reached. (GeoResources also directly acquired 18% of the Oklahoma properties.)

Commenting on the structure of the Oklahoma deal, Musante said, “This type of structure has been beneficial to GEOI in the past.” In one of the earlier deals with GE, GeoResources is the general partner where the two companies are developing Austin Chalk drilling opportunities in the Giddings Field in central Texas. Musante estimates the value of GeoResources’ general partnership interest in that venture . . .

Small-cap stocks plunged early Friday as a downward spiral developed among government-sponsored mortgage firms and record high crude oil prices sent equity bears on a stampede. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was down 3.09, or 0.46%, at 667.35, an ugly start to the day, but well off the initial morning lows.

The Michigan sentiment survey came in better-than-expected, with the headline figure at 56.6, compared with the median forecast of 55.5. The stock market appeared to bounce mildly off the lows in conjunction with the Michigan figures, but the market was already trying to mount a recovery move even before the data came out.

Fannie Mae (NYSE:FNM) collapsed some 40% shortly after the open, and similar losses were pinned on Freddie Mac (NYSE:FRE) on huge trading volume. Selling fury was fueled overnight by an article in the New York Times suggesting the government was considering a takeover of the embattled mortgage lending giants as the housing slump and credit crisis wallop the firms.

The freefall in GSEs spilled over to the rest of the financial sector, with large caps such as Wachovia Corp. (NYSE:WB) down 9%, Merrill Lynch down 6% and Lehman Bros. (NYSE:LEH) off 17%. Small-cap index products are peppered with regional and small banks, and they often have even more trouble gaining access to credit than the bigger banks, so heightened fears on the credit crunch could slice into the outperformance seen in the Russell 2000 versus large-cap index products (although in early trade, losses in the Russell 2000 were on a slower pace than its big-cap brethren).

“Retail and credit issues sparked selling yesterday and remain a concern today. Volatility is high right now. I think FNM and FRE are vulnerable to further losses, but the market is thinking that the government will aid the GSEs in some way and keep the financial system whole,” Nick Kalivas, vice president of financial research with MF Global, told SmallCapInvestor.com in an email interview.

“I think earnings news should be the main focus and Thursday’s DOW/ROH deal was bullish, but the credit environment is so uncertain and the market does not see the financing available for a host of deals. The market is cheap based on the M&A, but there may not be the liquidity or money to actually push it higher. That . . .

Small-cap stocks are expected to slump on the open, pulled down by the deepening crisis among government-sponsored mortgage lenders and by another steep rise in crude oil prices overnight. Stock index futures were down about 1% during after-hours trading, which would suggest an open for the Russell 2000 (NYSE:IWM) near 663.50.

The freefall in mortgage firms Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) hit a fresh crescendo overnight, with FNM shares off 37% and FRE also tumbling about 37% on a New York Times story that said the U.S. government is considering a takeover of the staggering firms as the housing slump and credit crisis take a toll. The GSE tumult will likely cast a pall over the entire financial sector, and indeed, Wachovia Corp. (NYSE:WB) was off some 8% overnight and Merrill Lynch (NYSE:MER) was down about 2.5%.

Crude oil prices shot more than $3 dollars a barrel to the $145 zone, hitting a fresh record high and recovering $10 dollars in losses from earlier this week in dramatic fashion. Energy prices shot higher the last two days amid supply concerns out of Nigeria and Brazil, and by ongoing geopolitical tension in the Middle East. The sharp upturn in crude oil coincided with a decline in the U.S. dollar, which was down about 0.3% against the euro and about 0.7% versus the yen before the international trade data was released at 8:30 a.m. ET. The slide in the dollar was then extended modestly after the trade report came out. On the data front, the Michigan sentiment survey comes out later this morning around 10:00 a.m. ET, and could spark a . . .

After opening higher, small caps have cascaded into the red midday, despite a continued sell off in crude from its record levels throughout the session and ahead of second-quarter earnings.

At 12:51 p.m. ET, the Russell 2000 (NYSE:IWM) was down 8.35, or 1.25%, at 657.43, while the Dow was down 63.67, or 0.56%, at 11,224.87.

After breaching a new record level of above $145 a barrel ahead of the July 4th weekend, crude oil futures pulled back sharply today. Crude is off $5.12 to approximately $140 a barrel midday. The commodity is still up some 50% for the year.

Oil prices are seeing downward pressure, as tensions in the Middle East are deflating in the minds of oil traders. Iran's foreign minister Manouchehr Mottaki said in an interview with CNN on Sunday that Iran is now assessing western governments with a new point of view. The Iranian foreign minister also suggested Iran might entertain the idea of a compromise with its nuclear program. Also, the country is expected to meet with the European Union's head of foreign policy surrounding the country’s nuclear program.

Oil also sold off as the dollar rallied. The greenback was buoyed by weak output numbers in Germany and the United Kingdom as well as resistance to sell the dollar in the midst of the G-8 leaders open summit meeting today in Japan.

“For the U.S. dollar, it's a question of a global economic race to the bottom between Japan, Europe and the United States,” Andy Busch, global foreign exchange strategist for BMO Capital Markets, wrote in an email. “Whoever hits first and bounces wins.”  

Bottom fishers were prowling the Street earlier in the session, as valuations have been knocked down to the cheapest level since April. However, probable jitters that prelude second-quarter earnings results seemed to have superseded the low valuations that had clouded investors’ actions earlier today. Quarterly earnings results are expected to begin trickling in Tuesday, as Alcoa kicks off the season. Analysts expect this to be the fourth consecutive quarter of negative earnings. Analysts expect . . .

Littlefuse, Inc. (Nasdaq:LFUS) is in the process of laying the groundwork for big things to come.

The company manufactures and sells circuit protection and related devices to a global base of customers in the electrical and automotive industries. At a market cap of $788 million, the Illinois-based company has been in business since 1927.

The company’s founder Edward Sundt invented the first small, fast-acting protective fuse that was used to prevent sensitive test meters from burning out. Since then, the company has done everything from developing mission-critical components for NASA to making fuses for General Motors (NYSE:GM). Today some of its major customers include Cisco Systems (Nasdaq:CSCO), General Electric (NYSE:GE), Ford (NYSE:F) and Alcatel-Lucent (NYSE:ALU).

The company operates in three major segments: electronics, automotive and electrical. The electronics segment presently accounts for a little more than 60% of the company’s total sales. The automotive business makes up just under 30% of Littlefuse’s sales, with the electrical segment coming up with the remainder. The company’s sales are well-diversified from a geographical standpoint. Sales to Asia comprise 38% of the company’s portfolio with the Americas and Europe accounting for 37% and 25%, respectively.

The company is coming off a first quarter in which adjusted diluted EPS rose by 28.6% on a 1.4% increase in sales versus the year-ago quarter. On a year-over-year basis, automotive and electrical sales increased 8% and 5%, respectively, while electronics sales fell 1%. Other positive developments that transpired during the quarter were the repurchase of $6.6 million worth of Littlefuse shares, the acquisition of a company that supplies high-current ground fault protection devices and a spike in the company’s book-to-bill ratio for electronics.

Analysts are looking for Littlefuse to finish 2008 with EPS of $1.85 on $569 million in revenues. These numbers would represent 12.8% and 6.1% respective increases over the company’s 2007 results. Analysts are then expecting EPS to grow by another 31.4% in 2009 on a 6.2% rise in sales versus expected 2008 results.

As of Tuesday, the company’s stock price was up 10.41% so far this year. This appreciation compares favorably to the S&P 500, which is down 7.4% year-to-date. Despite this market-beating performance, one analyst still believes that . . .

After a brief slump in morning trading spurred by the surge in crude prices, small caps have steadily risen during the Monday afternoon session. At 1:52 p.m. ET, the Russell 2000 (NYSE:IWM) was up 5.28, or 0.72%, at 738.89.

Crude oil have skyrocketed to more than $137 a barrel in afternoon trading. Investors reacted nonchalantly to Saudi Arabia’s announcement that it would increase production. In other commodity trading, the U.S. dollar is down against both the yen and the euro.

“Saudi Arabia has offered to increase oil production, as the world’s biggest oil exporter moves to address global fears that prices are spiraling out of control, according to the London Times. They said they would increase production by 200,000 barrels a day next month and this comes on top of a 300,000 increase in June,” Andy Busch, foreign exchange strategist for BMO Capital Markets, wrote in an email. “Together, the increases would take production above 10 million barrels a day in Saudi Arabia. Then, CNBC reports that they will have difficulty meeting this new level and a North Sea drill rig fire causes oil to go up.”

Earlier this morning, the NY Manufacturing Survey came in below expectations, which put the market on the defensive before the crude oil price spike delivered a knockout punch for stocks. The manufacturing report came out at minus 8.68 for June, well below the median forecast for a dip of 2, and eroding from last month’s figure of minus 3.23.

Lehman Bros. (NYSE:LEH) kept the financial sector on investors’ minds after announcing a $2.8 billion loss for the second quarter. Lehman’s early Monday announcement met its pre-announcement issued last week. In other large-cap financial news, American International Group (NYSE:AIG) was down some 1%, after announcing that the CEO will be replaced. Also on the large-cap front, General Electric (NYSE:GE) shares were off 0.5% after being downgraded overnight . . .

Small-cap stocks are expected to open slightly lower, pulled down by an increase in crude oil prices ahead of the stock market opening, and by a weaker-than-expected showing from a manufacturing survey. The Russell 2000 (NYSE:IWM) was hovering near steady levels in after-hours action, while S&P 500 futures were off about two handles. The market is expected to keep a close watch on financial stocks following Lehman earnings this morning.

Crude oil was up in overnight trading, rising more than $1 dollar per barrel to about $136 as the U.S. dollar pulled lower against the euro, losing about 0.7% and also slipped about 0.2% versus the yen.

The NY Manufacturing Survey was down 8.68 in June, which was below the forecast for a dip of about 2 and which contracted from minus 3.23 the previous month.

Lehman Bros. (NYSE:LEH) reported quarterly results which were in line with market expectations, but the real news will be how the market responds to forward guidance as the day progresses. Initial action in LEH shares after the results was . . .

As technologies enable earlier diagnosis of cancer and other diseases, computer-aided detection systems (CADs), are critical to facilities such as women’s health-care centers that conduct mammograms to screen for breast cancer.

As one of the leaders in CAD technology used in the detection of breast cancer, Nashua, N.H.-based iCAD, Inc. (Nasdaq:ICAD) has enjoyed much investor interest in recent weeks, following news on April 4 that the U.S. Food and Drug Administration had approved a broader use of its technology. The clearance should put iCAD’s technology in thousands of additional mammogram machines by later this year.

ICAD stock, which started the year at $2.14 per share, closed at $3.60 on Friday, not far below its 52-week high of $4.24. Most analysts who follow the company see further room for growth as iCAD begins to recognize sales for its newly approved technologies for breast cancer detection, while working on ways to apply that same basic technology to the detection of other diseases such as colon cancer.

“They have a huge backlog of orders right now,” Jon Hickman, an analyst with MDB Capital Group, said in an interview with SmallCapInvestor.com. “They will keep making their existing products better and apply them to other cancers.”

The story of CADs in general (and iCAD in particular) is fairly complex, since these technologies do not work alone, but must be attached to a larger piece of equipment, such as a mammography machine.

The FDA, likewise, does not approve CAD technology in a vacuum. Rather, it reviews the safety and effectiveness of the technology when attached to a certain manufacturer’s equipment. ICAD’s big breakthrough last month was the approval of its SecondLook digital computer-aided detection system in FujiFilm Holdings Corp.’s digital mammography machines. The combination is aimed at screening for and diagnosing breast cancer earlier than the techniques now on the market.

Analyst Hickman projects sales from that iCAD/FujiFilm detection technology will reach $10 million to $11 million dollars within a year and a half. ICAD’s total revenues last year were $26.6 million, which offers some sense of the potential this latest . . .

Small caps gained shallow ground midday on the heels of Fed Chairman Bernanke’s sanguine comments surrounding the aftermath of the credit crisis and banks’ recent abilities to raise capital in response.

At 1:08 p.m. ET, the Russell 2000 (NYSE:IWM) edged up 3.89, or 0.53%, to 739.96 while the Dow gained 51.37, or 0.4%, to 12,949.75.

In a prepared statement to a Chicago Fed conference, Bernanke offered encouraging remarks this morning when he addressed lessons learned from the credit debacle. The Fed Chair said conditions remain delicate and encouraged banks to continue being “proactive” in raising needed capital to create new profit opportunities as the economy and financial markets improve.

“Importantly, capital raising and balance sheet repair allow for the extension of new credit, which supports economic expansion,” Bernanke said.

He also noted that banks that closely monitored valuation inaccuracies of financial instruments fared better.

In economic news, investors shrugged off a slew of downbeat data. The Philadelphia Fed survey clocked in at negative 15.6, which was better than the projection for a decline of 19. That report followed disappointing numbers from the release of Industrial Production and the New York Manufacturing Survey, both of which pointed to a bleak manufacturing activity. Industrial Production was pegged at minus 0.7%, which was below the forecast for a dip of 0.3%. Meanwhile, the NY Manufacturing data came in at minus 3.23 for May, below the forecast for 0.00.

In addition, the Weekly Claims report edged slightly higher to 371,000, which was just above the forecast of 370,000.

Water is one of those products that will never go out of style. And if you happen to sell the stuff, you’re in luck because today’s markets are thirstier than ever.

Climate change is among the factors driving increased demand for fresh water; Georgetown, Grand Cayman-based Consolidated Water Co. Ltd. (Nasdaq:CWCO) is one of the leading desalination companies poised to benefit from these conditions — no matter how illiquid the capital markets get.

The $352-million market cap company runs 12 reverse osmosis seawater filtration plants and serves freshwater-starved markets in the Bahamas, the Cayman Islands, Belize and the British Virgin Islands.

Living up to its name, 35-year old Consolidated Water has been an active acquirer of other water providers and is now the regional leader in desalination technology. It has exclusive long-term, fixed price contracts in lucrative resort markets and faces little competition for its retail and bulk sales (although that could change as big, well-resourced companies like General Electric Company (NYSE:GE) enter the water industry).

Share prices had been slowly sinking for several months until investors caught . . .