Tag - NYSE:HOV

PMI Group Inc (Nasdaq:PMI), Hovanian Enterprises Inc (Nasdaq:HOV), Beazer Homes USA Inc (Nasdaq:BZH) and , Sequnom Inc (Nasdaq:SQNM) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Strategic Hotels & Resorts Inc (Nasdaq:BEE), Vanda Pharmaceuticals Inc (Nasdaq:VNDA), McClatchy Co (Nasdaq:MNI), Pozen Inc (Nasdaq:POZN) and Energy Conversion Devices Inc (Nasdaq:ENER).

PMI Group Inc (Nasdaq:PMI), Hovanian Enterprises Inc (Nasdaq:HOV), Invesco Mortgage Capital Inc (NasdaqIVR:) and Photronics Inc (Nasdaq:PLAB) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Beazer Homes USA Inc  (Nasdaq:BZH), intergrated Silicon Solution (Nasdaq:ISSI), Affymetrix Inc (Nasdaq:AFFX), McClatchy Co (Nasdaq:MNI) and BioCryst Pharmaceuticals (Nasdaq:BCRX).

PMI Group Inc (Nasdaq:PMI), Hovanian Enterprises Inc (Nasdaq:HOV), Beazer Homes USA Inc (Nasdaq:BZH) and Eagle Bulk Shipping Inc (Nasdaq:EGLE) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Sonic Automotive Inc (Nasdaq:SAH), China Sercurity & Security Technology Inc (Nasdaq:CSR), Sequnom Inc (Nasdaq:SQNM), Southwest Bancorp Inc (Nasdaq:OKSB) and Callon Pete Co (Nasdaq:CPE).

Frontier Financial Corp Washington (Nasdaq:FTBK), Hovaninan Enterprises Inc (Nasdaq:HOV), Chian Security and Survelliance Technology Inc (Nasdaq:CSR) and Thomas Weisel Partners Group Inc (Nasdaq:TWPG) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Protection One Inc (Nasdaq:PONE), Beazer Homes USA Inc (Nasdaq:BZH), Sequnom Inc (Nasdaq:SQNM), Strategic Hotels & Resorts Inc (Nasdaq:BEE) and Eagle Bulk Shipping Inc (Nasdaq:EGLE).

Arca Biopharma Inc (Nasdaq:ABIO), Hovanian Enterprises Inc (Nasdaq:HOV), Pacific Capital Bancorp (Nasdaq:PCBC) and Beazer Homes USA Inc (Nasdaq:PCBC) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: McClatchy Co (Nasdaq:MNI), Affymetrix Inc (Nasdaq:AFFX), Hawaiian Holdings Inc (Nasdaq:HA), Delcath Holdings Inc (Nasdaq:HA) and Delcath Systems Inc (Nasdaq:DCTH).

Delcath Systems Inc (Nasdaq:DCTH), Hovanian Enterprises Inc (Nasdaq:HOV), Beazer Homes USA Inc(Nasdaq:BZH) and McClatchy Co (Nasdaq:MNI) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Energy Conversion Devices Inc (Nasdaq:ENER), Strategic Hotels & Resorts Inc (Nasdaq:BEE), LionBridge Technologies Inc (Nasdaq:LIOX), Mattson Technology Inc (Nasdaq:MTSN) and Eagle Bulk Shippings Inc (Nasdaq:MTSN).

Hovnanian Enterprises Inc (Nasdaq:HOV), Vita Cost Com Inc (Nasdaq:VITC), Beazer Homes USA Inc (Nasdaq:BZH) and Strategic Hotels & Resorts Inc (Nasdaq:BEE) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: America First Tax Exempt Investors (Nasdaq:ATAX), Hot Topic Inc (Nasdaq:HOTT), Two Harbors Inventory Corp (Nasdaq:TWO), McClatchy Co (Nasdaq:MNI) and Navios Maritime Acquis Corp (Nasdaq:NNA).

Hot Topic Inc (Nasdaq:HOTT), Hovnanian Enterprises Inc (Nasdaq:HOV), Smart Modular Technologies Inc (Nasdaq:SMOD) and Xenoport Inc (Nasdaq:XNPT) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Beazer Homes USA Inc (Nasdaq:BZH), Western Refining Inc (Nasdaq:WNR), Compellent Technologies Inc (Nasdaq:CML), Ameris Bancorp (Nasdaq:ABCB) and Strategic Hotels and Resorts (Nasdaq:BEE).

For the most part, the big banks have now reported earnings. And there's a lot to digest. But when we're done with today's discussion, I believe we'll have a strong handle on a big opportunity for small cap investors.

So bear with me as we set the stage...

This morning Morgan Stanley (NYSE:MS) reported that it returned to profitability after three consecutive quarterly losses. While the bank reported strong results from its investment banking and growing brokerage businesses, it said real estate investments are still a drag.

Wells Fargo (NYSE:WFC) sang a similar tune. The third-largest U.S. bank by market cap recorded $3.2 billion in Q3 net income, but expects loan losses to rise further, and to peak next year. Their acquisition of Wachovia is not helping matters. Those loan losses rose over 70%.   

We're hearing the same story from nearly all the big American banks, whether they made money or not. "Profits are positive, or at least less negative, but we're still loosing money on bad real estate and consumer loans." This was the news from Bank of America (NYSE:BAC), US Bancorp (NYSE:USB), Citigroup (NYSE:C), and JPMorgan Chase (NYSE:JPM).

No doubt we're all growing weary of the stream of bearish news on the housing front. The Commerce Department said Tuesday that September New Home Construction and New Building Permit applications were lower then expected. Foreclosure filings hit a record high. Another report stated that national median home prices will drop more than 10% by June 2010.

These factors are clearly showing in the poor bank earnings...

Nymox Pharmaceutical Corporation (Nasdaq:NYMX), CardioNet Inc (Nasdaq:BEAT) and Bon-Ton Stores Inc (Nasdaq:BONT) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Novavax Inc (Nasdaq:NVAX), Blue Coat Systems Inc (Nasdaq:BCSI), Sequenom Inc (Nasdaq:SQNM), Hovnanian Enterprises Inc (Nasdaq:HOV), First Bancshares Inc (Nasdaq:FBSI) and ICT Group Inc (Nasdaq:ICTG).

Stocks were up today in reversing the downward trend from the week with leadership from financials and healthcare. Most notably blue chips JPMorgan Chase & Co. (NYSE:JP), Goldman Sachs (NYSE:GS), Pfizer (NYSE:PFE), and Merck (NYSE:MRK) were up. Rounding out the leaders in financial were Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC).

The Dow ended the day's trading session up 0.69% to close at 8,555 while the Nasdaq declined 0.02% and the S&P 500 saw gains, closing at 918, up 0.84%.

Small-cap bellwether Russell 2000 Index, representing the 2,000 largest small-cap stocks, closed up 0.36% to 509.

Leading small cap gainers reflected the broader push top leaders in financials including National Penn Bancshares (Nasdaq:NPBC) up 31.4%; American Capital (Nasdaq:ACAS) up 27.1%. Other gainers include Myriad Pharmaceuticals (Nasdaq:MYRXV) up 15.7%; Nelnet (NYSE:NNI) up 30.5%; and Talbots (NYSE:TLB) up 16%.

Small-cap decliners were lead by Liz Claiborne (NYSE:LIZ) down 25.9%, on forecasts of larger than expected losses. The company gave no indication for the larger losses other than the message from all apparel companies that consumers are cutting back on what they consider nonessential purchases. Liz Claiborne reported a loss of 37 cents per share in the first quarter, excluding one-time items. Analysts had forecast 33 cent loss per share for the second quarter. No guidance was provided by the company as to what the revised forecast might be. This played into investor concerns as sellers look to unload shares as reflected in higher than normal volume.

In other news concerning Liz Claiborne, the company announced yesterday that it intends to offer $75 million in convertible senior note due 2014. It is the company's intention to use the proceeds to pay down a portion of borrowings under an amended credit facility. 

*****10 banks have paid back $68 billion in TARP loans. Including some smaller banks that have already repaid loans, the total is now over $70 billion. Even though the repaid money was raised from secondary stock offerings, which dilute shareholder value, it's still something of a positive sign, I suppose.

Now, what's going to happen to the money? Will it sit in the TARP fund? Will it be used to back other loans to small businesses?

This is an inflation issue. The money supply has increased by around $1 trillion in the last year (much of the bailout "funds" have been loan and asset guarantees that haven't increased the money supply, yet). It's the Fed's job to contract the money supply to keep price inflation in check.

This is the problem with creating money - you have to be willing to "uncreate" it at some point. With unemployment as high as it is, inflation is not yet a concern. But that will change eventually, and the Fed will have to have the resolve to contract the money supply when the economy starts showing signs of life.

As we've seen in the past, an economy that gets hooked on liquidity is very hard to wean. I personally have my doubts as to whether this Fed will be able to avoid the Greenspan legacy of allowing asset bubbles to form. So we want to be ready to profit form whatever asset bubbles arise in the future.

This is one of the topics we'll be discussing in next Wednesday's Video Conference. It's titled Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth and will air on Wednesday, June 24 at 6:00 P.M. It's free to attend, you can sign up HERE

*****Stocks are trying to put an end to the sell-off that started with Monday's big decline. The S&P 500 is within a few points of its 200-day moving average. It's also less than 20 points from its 50-day moving average.

One of the simplest trend following systems focuses on the crossover of the 50-day and 200-day MA. When the 50-day MA crosses above the 200-day MA, it signals a trend change from bear to bull. When the 50-day MA falls below the 200-day MA, it signals a change from bull to bear.

So, the current trading is very significant to technical traders. The S&P 500 is flirting with a major buy signal. It should be noted that the Nasdaq flashed the moving average crossover buy signal a few days ago. I would view the moving average crossover on the S&P to be confirmation of the Nasdaq signal.

*****Jason Cimpl, technical analyst at TradeMaster Daily Stock Alerts, isn't waiting. He's expecting a strong bounce and recommended 3 upside positions to his readers yesterday. One of them, the Direxion Technology Bull (NYSE:TYH), is a leveraged ETF that seeks triple the daily gains on the Russell 1000 Technology Index. That trade finished the day with a 3% gain.

Don't forget the new Daily Profit feature - Jason will give us another video chart analysis session tomorrow. In last Friday's edition he pretty much nailed this week's trading so I can't wait to see what he has to say about next week.
 
*****I'm itching to recommend a new stock to Daily Profit readers. We did pretty well with Graham Corp (AMEX:GHM) and Hovnanian (NYSE:HOV) earlier in this rally. 

I can't say I feel comfortable recommending Molecular Insight Pharmaceutical (Nasdaq:MIPI), but the story that came out yesterday is pretty darned interesting. The biotech announced that it can both detect and treat prostate cancer with its imaging agent, Trofex. And instead of the usual 5 tests including MRI and ultrasound, Molecular Insight can collect the necessary data for diagnosis within 2 hours of the Trofex injection.

The stock was up 42% to $6.24 yesterday. Of course, like most small biotechs, Molecular Insight is burning through cash like a teenager at the mall. But if this technology is viable, the stock will go a lot higher than $6.24.

Just thought you'd like to know…talk to you tomorrow.

 

 

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 . . .

Small caps are up nearly 3% this afternoon after the government reported this morning that fewer jobs were lost in April than expected.

At 2:06 pm ET, the Russell 2000 (NYSE:IWM) is up 2.81% at 506.81, while the Dow is up 1.56% and the S&P 500 is up 1.85%.

Employers cut 539,000 jobs last month. That is a big improvement from a revised 699,000 job losses in March and less than the loss of 610,000 jobs analysts had been expecting. Also, the federal government reported that 10 of the 19 largest U.S. banks must raise about $75 billion in new capital, which is less than some had feared.

Small caps on the rise today include MedQuist Inc. (Nasdaq:MEDQ), up 64% after announcing first-quarter 2009 results, and Huntington Bancshares Inc. (Nasdaq:HBAN), 36% higher after completing a $120 million stock issue. Fuel Systems Solutions (Nasdaq:FSYS) is also up 40% today after posting a Q1 net profit, while VNUS Medical Technologies (Nasdaq:VNUS) has popped 35% after news broke that Covidien Ltd. will be acquiring the small cap.

*****The headline reads “Bank Stress Tests Lifts Clouds of Uncertainty.” And bank stocks are rallying. Regional bank Fifth Third Bancorp (Nasdaq:FITB) is up 40% in the early going on the news that it needs to raise $1.1 billion.

In total, the government’s stress tests recommended that banks raise $75 billion to withstand further potential losses. I’m not sure how to reconcile the stress tests results with the IMF report on bank losses that was released in April.

In that report, the IMF said that total losses for banks and financial institutions would hit $4 trillion. The U.S. share of that is $1.6 trillion, of which $510 billion has already been written off. That leaves another $550 billion in write-offs . . .

Stocks are rallying during Monday trading, boosted by surprise increases in pending home sales and construction spending.

At 3:03 pm ET, the Russell 2000 (NYSE:IWM) is up 2.73% at 500.27, while the Dow is up 2.17% and the S&P 500 is up 2.61%.

Today the National Association of Realtors said its index of pending sales for previously occupied homes rose 3.2% to 84.6. Also out today was data from the Commerce Department that showed construction spending rose 0.3% -- the best showing since last September.

Small-cap natural gas company Crosstex Energy Inc. (Nasdaq:XTXI) is up 64% this afternoon amid rising natural gas prices and a rally in energy and commodities sectors. Meanwhile, small-cap footwear manufacturer Crocs, Inc. (Nasdaq:CROX) is climbing nearly 40% higher today on heavy volume ahead of its earnings release on Thursday.

*****Last week, the Baltimore Sun laid off 61 employees. I heard that a couple reporters were actually called on the phone while they were sitting in the press box covering an Orioles game and told they were no longer Sun reporters.

It’s no secret that the newspaper biz has gotten tough. The Sun’s parent, the Tribune Company, filed for bankruptcy protection in December of 2008 after its chairman, Sam Zell, took the company private. Analysts knew he was loading too much debt on the company, but the decline in advertising revenues at newspaper . . .

News that Chrysler will be filing bankruptcy is causing stocks to seesaw through Thursday afternoon.

At 2:35 pm ET, the Russell 2000 (NYSE:IWM) is up 0.28%, while the Dow is up 0.25% and the S&P 500 is up 0.32%.

Small caps flying high today include Bare Escentuals (Nasdq:BARE), up 42% after its Q1 results topped the Street’s view. Also higher are Orexigen Therapeutics (Nasdaq:OREX), up 44% on heavy volume, and Green Mountain Coffee Roasters (Nasdaq:GMCR), up 37% after the small cap boosted its FY sales and EPS view.

On the downside, Build-A-Bear Workshop, Inc. (NYSE:BBW) is 20% lower today after posting a Q1 loss, and small-cap Oshkosh Corporation (NYSE:OSK) has falledn 19% after projecting a loss for 2009 and suspending its dividend.

******Bank of America (NYSE:BAC) shareholders voted to remove Ken Lewis as chairman of the board. But he remains CEO, at least for a little while. As much as I railed against Lewis, I must acknowledge that he is a something of a victim.

Now, don’t get me wrong. I have no sympathy for the CEOs who over-leveraged and mismanaged their companies during Wall Street’s greed bonanza. And Lewis was right there with the rest of them.

But when it comes to the Merrill Lynch acquisition and the surrounding events, it’s pretty clear that Fed Chief Ben Bernanke and former Treasury Secretary Paulson hung him out to dry. In other words, I believe Lewis’ assertion that Bernanke and Paulson strong-armed him into the Merrill acquisition and encouraged him to keep his mouth shut about Merrill’s $15 billion fourth-quarter loss.

The one question – and this gets right to the heart of the matter – is why did Lewis play ball? He had to know that his shareholders would be irate. And that’s the point – CEOs ultimately work for their shareholders. And bank CEOs for the most. . .

Stocks are rising in afternoon trading after Treasury Secretary Timothy Geithner told Congress that some banks could be allowed to repay financial bailout funds.

At 1:24 pm ET, the Russell 2000 (NYSE:IWM) is up 2.47% at 463.65, while the Dow is up 0.74% and the S&P 500 is climbing 1.13%.

Small caps on the move today include retailer Pacific Sunwear (Nasdaq:PSUN), up nearly 20% after it renewed an extension agreement with Alliance Data Systems, and retailer Charming Shoppes, Inc. (Nasdaq:CHRS), which is up 14% on lower-than-average volume.

*****Treasury Secretary Tim Geithner is having his “Lucy” moment today. Yes, he’s got “a lot of explaining to do …”

He spoke Congress today to answer questions as to how the Public-Private Investment Program will actually remove toxic assets and protect taxpayer money at the same time. Also up for explanation is how the remaining $110 billion in TARP money is enough to fund any future bank rescues.

I don’t envy Geithner one bit. That’s because there’s no way he can adequately answer these questions:

If TARP’s $110 billion is sufficient, why is the government talking about accepting equity in return for as much as $200 billion in bailout funds?

How can you provide loans to private investors to minimize the risk of toxic asset purchases, pay the banks a premium for those assets and still believe that taxpayers can make off the deal?

There’s no way everybody can make money of these deals. The taxpayer is taking on the most risk and has the most to lose. 

*****No word on why Geithner thinks $110 billion is sufficient to keep the bailouts rolling. Goldman Sachs mortgage analysts think another $400 in bank . . .

Stocks are flying high Friday afternoon buoyed by better-than-expected earnings releases out this week from benchmark companies and financial institutions.

At 1:58 pm ET, the Russell 2000 (NYSE:IWM) is up 1.46% or 480.80, while the Dow is up 0.56% and the S&P 500 is climbing 0.92%.

After announcing a quarterly cash dividend along with fourth-quarter results, small-cap Virco Manufacturing Corp. (Nasdaq:VIRC) is up a stunning 60%, while DryShips (Nasdaq:DRYS) is 25% higher after being upgraded to “outperform” by Oppenheimer. (DRYS was one of the three promising shipping stocks we included in our recent special report on dry bulk shippers. You can click here for a copy of the report.)

******Stocks have marched steadily higher since March 9. The first 10 days or so of the rally was a mad dash, which is how recovery rallies behave. But since the huge up day on March 23, stocks have settled higher. The S&P is now within spitting distance of its 2009 highs.

There’s no doubt that investors have been pricing in some fairly optimistic expectations. And so far this earnings season is rewarding that optimism.

Now, I’m not saying that earnings have been great. The point is, earnings haven’t been terrible. Or at least, not as terrible as investors thought they’d be back in February.

You may recall that many analysts were saying first-quarter earnings would be when we’d really see just how bad the economy has been. It’s still early in earnings season, but we’ve heard from some important companies. I think it’s safe to say that earnings could have been much worse.  

*****Take General Electric (NYSE:GE), for example. GE stock price is down 63% form its 52-week highs. It cut its dividend and lost its AAA debt rating. That’s . . .

Trading is relatively quiet this afternoon following mixed economic reports out today.

At 2:23 pm ET, the Russell 2000 (NYSE:IWM) is up 1.54% at 468.25, while the Dow is up 0.37% and the S&P 500 is up 0.87%.

Earlier this morning U.S. housing construction plunged a dramatic 10.8 percent in March, far worse than expected, to the second lowest level on record. New jobless claims fall for second straight week to 610,000.

Not all news today was bad news though. Small-cap communications equipment developer Orckit Communications (Nasdaq:ORCT) is up over 30% on heavier-than-average volume while China Sky One Medical, Inc. (Nasdaq:CSKI) is also climbing above 30% after issuing FY 2009 guidance, and record Q4 and full-year 2008 results.

*****The saga continues for the homebuilders. Last week, we saw the first steps toward consolidation in this sector when Pulte Homes (NYSE:PHM) bought out Centex (NYSE:CTX). This came on the heels of some slight improvements in existing home sales.

Even yesterday, a builder sentiment survey showed an improvement among builders. That got investors excited for this morning’s housing starts number. Unfortunately, the optimism was misplaced. Housing starts came in below expectations for March.

Of course, this relates directly to Hovananian Enterprises (NYSE:HOV). Hovnanian jumped 21% yesterday to $2.27, but more importantly, it broke through resistance at $2. And it wasn’t a small break of resistance, either. The stock crushed resistance in what should be considered a breakout move.

There’s not much in the way of a further move to $3 a share. That would be darn near a double for SCI Daily readers who bought on my recommendation at $1.52.

The only thing in the way for Hovnanian is the market in general …

*****Just as traders were looking for a rally in the early days of March, traders are now wondering where the heck the sell-off is. It’s not that there’s . . .

Stocks are trading lower Tuesday afternoon following a disappointing retail sales report and anticipation of upcoming earnings reports that will help provide further insight into the economy’s health.

At 11:42 am ET, the Russell 2000 (NYSE:IWM) is down 8.41, or 1.8%, at 459.64, while the Dow is down 0.84% and the S&P 500 is down 0.88%.

This morning the Commerce Department reported that retail sales fell 1.1% in March — the biggest decline in three months and a much weaker showing than the 0.3% increase that analysts expected.

Small caps bucking the trend today include Dendreon Corporation (Nasdaq:DNDN), up a stunning 135% after its Provenge prostate cancer treatment met its key goal in prolonging survival in men with advanced prostate cancer. Also climbing higher is Phoenix Technologies Ltd. (Nasdaq:PTEC), up 35% after Roth upgraded the small-cap software company to “buy” from “hold.”

******"Given the challenging fundamental backdrop in the global economy, we continue to be cautious about the near-term outlook for our businesses …"

That’s what Goldman Sachs CFO had to say after it posted pretty good earnings numbers on Monday. Of course, no one in the banking sector in his or her right mind is going to say things are great. But numbers are one thing, actions are another.

Goldman earned $1.66 billion in the first quarter, or $3.39 a share. Analysts were expecting earnings of $1.64 a share. Goldman essentially blew the numbers out of the water, like Wells Fargo.

But here’s the sticky point: Goldman said it will repay its $10 billion in TARP . . .

Stocks are trading lower today as investors prepare for key company earnings later in the week and brace for a potential bankruptcy filing from General Motors.

At 12:36 pm ET, the Russell 2000 (NYSE:IWM) is down 7.71, or 1.65%, at 460.49. The Dow is down 0.92% and the S&P 500 is down 0.46%.

Key banks, which kicked off a rally in early March when several institutions said they were profitable in the first two months of the year, will report quarterly earnings this week. Asian markets also gained more ground Monday as Japan's new $150 billion stimulus plan and upbeat news about Chinese bank lending boosted hopes for recovery in the region's major economies.

Small caps on the rise this afternoon include AgFeed Industries (Nasdaq:FEED), up 31% on heavy volume, while Rosetta Genomics (Nasdaq:ROSG) is up nearly 20% after signing a license and collaboration agreement with Prometheus Laboratories.

*****Thank you, Wells Fargo. The S&P 500 ramped nearly 4% on Friday as Wells Fargo said it expects its first-quarter earnings to be nearly double what analysts were expecting. And it wasn’t even Wells Fargo’s earnings day – the company pre-announced earnings that will be released on April 22. These days, if you have something to crow about, you do it. ASAP.

Financials have been at the forefront of the current rally, and that’s as it should be. Any good rally has to have the financials out in front. Of course, the financials are moving off such low levels that even huge percentage gains, like the 12% Citigroup was up or the 31% Wells Fargo jumped, are barely a drop in the weighted index bucket. 

Still, stocks are up and that’s good. 

*****There is some concern that Wells Fargo’s earnings surprise is more about accounting than an actual uptick in business. Some are saying that Wells Fargo’s loss reserves (money it sets aside to account for future losses) are too low, . . .

Stocks are navigating choppy trading Wednesday after the Federal Reserve’s recent meeting meetings showed that officials saw that the economy was deteriorating.

At 2:18 pm ET, the Russell 2000 (NYSE:IWM) is up 5.73, or 1.33%, at 437.43, while the Dow is up 0.23% and the S&P 500 is up 0.59%.

Pulte Homes Inc. announced today that it has agreed to buy rival small-cap Centex Corp. (NYSE:CTX) for $1.3 billion in a stock deal that will create the nation's largest homebuilding company. Centex shares are currently up almost 20%.

Other small caps climbing today include United Western Bancorp (Nasdaq:UWBK), up 42% on news it will sell certain assets of its Sterling unit.

******It doesn’t happen often. Earnings season usually kicks off with either some bullish enthusiasm or bearish pessimism. But Tuesday afternoon, Alcoa (NYSE:AA) gave analysts exactly what they were looking for: nothing more, nothing less.

Alcoa lost money in the first quarter. A lot of it, really. $497 million. A year ago it earned $303 million.

But that loss was, apparently, perfectly priced into the stock. And so . . .

Stocks are in rally mode this Thursday, adding to gains after the board that sets U.S. accounting standards agreed to give banks more flexibility in applying mark-to-market accounting to their toxic assets.

At 12:41 pm ET, the Russell 2000 (NYSE:IWM) is up 24.71, or 5.76%, at 453.87, while the Dow is up 3.88% at 8,062.59 and the S&P 500 is soaring 4.04% at 843.87.

Small caps on the move today include Stein Mart, Inc. (Nasdaq:SMRT), up 22% today, and Century Aluminum (Nasdaq:CENX) is also treading 26% higher.

******Unemployment numbers continue to rise, but investors are more focused on the hope that the economy has bottomed and may be positioning for recovery. At least for now.

Please note that I said “positioning for recovery.” Mortgage rates are down and that seems to be helping the housing market a little. Credit afforded by the Treasury aimed at removing toxic assets from banks is resulting in higher valuations for those banks.

But all of the steps that have been taken are in their infancy. How long will it take to work off the available inventory in the housing market? Will banks and private investors come to an agreement on acceptable prices for toxic assets?

These questions will be answered over time. And it should go without saying that there’s plenty of room for disappointment down the road.

*****The Public-Private Investment Program could create some very low risk profits for its participants. That’s because the Treasury and the Fed are . . .

Stocks extended gains Wednesday after investors were encouraged by factory and home sales data that further solidified beliefs that the economy is stabilizing.

At 3:00 pm ET, the Russell 2000 (NYSE:IWM) is up 0.59% at 425.26, while the Dow is up 1.6% at 7,730.38 and the S&P 500 is up 1.18% at 807.26.

Small caps moving higher today include PLX Technology (Nasdaq:PLXT), up 18% after the small cap formed an alliance with Fusion-io on new products.

*****Even before they’ve had the chance to present a third (or is it fourth?) turnaround plan, President Obama has said bankruptcy is the best way for GM and Chrysler to deal with their problems.

GM would be able to restructure with bankruptcy protection, but apparently it’s a lost cause for Chrysler if the proposed Fiat merger fails. GM’s got around $47 billion in debt it has to deal with.

It’s likely that Obama’s mention of bankruptcy is intended to bring bond holders and union officials to the table for some serious negotiating. Bankruptcy proceedings could cost 4 GDP percentage points and 1 million jobs.

*****Hovnanian Enterprises (NYSE:HOV) is back in the green after the National Association of Realtors said pending home sales rebounded. Some are even calling bottom for the housing market. However, given the massive supply that still exists, I think it’s a little early to ring the bell. Let’s say the housing market is in a bottoming process. That way, when prices stay weak longer than expected, we can say it’s just part of the process. Hovnanian is up 7% in the early going.

*****As you know, it’s Newsletter Advisors Wednesday. Today’s interview follows …

Timothy Lutts is Cabot’s chief investment strategist and editor of Cabot Stock of the Month Report. I sat down with him recently to ask him about the . . .

Stocks are in rally mode on the last day of March, with investors snapping up deals in tech and financial stocks as the second quarter comes to a close.

At 2:02 pm ET, the Russell 2000 (NYSE:IWM) is up 12.66, or 3.04%, at 428.63, while the Dow is up 2.03% at 4,674.94, and the S&P 500 is up 2.12% at 804.22.

Lackluster economic data out this morning did little to put a damper on the upbeat mood on Wall Street today, with investors going on a full-fledged buying spree of stocks such as Google (Nasdaq:GOOG), IBM (NYSE:IBM), Bank of America (NYSE:BAC) and Citigroup (NYSE:C).

Small caps on the move this afternoon include TBS International Limited (Nasdaq:TBSI), up 23% on a better-than-expected Q4 profit, and Canadian Solar Inc. (Nasdaq:CSIQ), up 21% on a new study out that shows the small cap is poised to experience dramatic growth.

*****Today is the last day of the second quarter. Mutual funds are no doubt buying the top performers to make their holdings look good. That helps explain today’s rebound. But what about yesterday’s declines?

Obviously, a quick 25% rally is going to have investors taking profits. This was especially apparent in the small-cap sector. It’s well known that small-cap stocks outperform when the stock market is recovering from a deep sell-off. Average gains for small caps digging out of the hole are 24%.

And we saw almost exactly that level of gain with Hovnanian Enterprises (NYSE:HOV).

Unfortunately, small-cap stocks bore the brunt of yesterday’s selling. In some cases, two weeks of gains were wiped out in one day. Hovnanian closed exactly at the price where I recommended it a week ago — $1.52.

It’s up modestly so far today and I have no problem holding it a bit longer.

*****On Friday, March 27, the NY Times ran an article about oil prices. Oil industry analysts are becoming concerned that low oil prices are causing oil companies . . .

Stocks are treading lower today, paring some of the recent gains seen in the last two weeks.

At 1:44 pm ET, the Russell 2000 (NYSE:IWM) is down 13.21, or 2.97%, at 432.09, while the Dow is down 2.07% at 7,760.17 and the S&P 500 is down 2.14% at 815.06.

Tech stocks led the decline as did energy stocks, which fell along with the price of oil. Earlier this morning, large-cap benchmark Google Inc. said it is laying off nearly 200 workers, while technology consulting and outsourcing firm Accenture lowered its outlook for the quarter and the year.

Declining oil prices sapped demand for energy stocks. Oil fell below $53 a barrel Friday, a day after hitting a high for the year, as investors worried that crude's recent gains aren't sustainable amid lingering doubts about the economy.

Small caps higher today include China Direct (Nasdaq:CDII), climbing nearly 10% today after announcing they would hold a conference call to discuss financial results for the year ended Dec. 31, 2008. Chinese small cap Agria Corporation (NYSE:GRO) is also up 8% today after the company promoted Raymond Lo to acting CFO after announcing the resignation of former CFO Gary Yeung.

******I’m fond of saying “never underestimate the American consumer.” Retail sales for February came in with a 0.2% rise, even though income fell 0.2%. Stocks look ready to sell off, but it’s not a response to retail sales. The indices have come a long way over the past two weeks, and it’s time for a little profit-taking.

I still believe that “buy the dips” is the appropriate strategy for the current rally. Of course, I’m talking about taking short- to medium-term positions. For . . .

Stocks are higher Thursday afternoon, bolstered by fresh economic and corporate data.

At 12:21 pm ET, the Russell 2000 (NYSE:IWM) is up 10.18, or 2.39%, at 436.70, while the Dow is up 1.28% at 7,849.37 and the S&P 500 is up 1.34% at 824.76.

Investor sentiment was buoyed after Treasury Secretary Timothy Geithner unveiled a financial system plan before the House Financial Services Committee today to outline the Obama administration's proposal for extensive overhaul of financial regulations.

Small caps climbing higher today include Republic Airways Holdings (Nasdaq:RJET), which is up almost 40% on higher-than-average volume.

******Former Czech Prime Minister and European Union President Topolanek called the U.S. economic stimulus plan “a road to Hell.” He claims the Fed, Treasury and Administration of repeating the mistakes of the 1930s that sent the United States into the Great Depression.

Also attacked were the stimulus bill’s supposedly “protectionist” policies.

Now, as much as we may criticize our government’s plans, I’m a little defensive when we get flak from an E.U. president. Especially one that just lost a no-confidence vote and was removed from power in his own country. You know what they say about people in glass houses.

Topolanek no longer speaks for his own country. And apparently, he doesn’t speak for the E.U., either. European leaders were out in force trying to minimize the damage their Union president’s comments may have caused.

*****Final GDP numbers from Q4 2008 are in, and they’re essentially in line with the preliminary estimates. That’s being taken as good news in the stock market, index futures rallied on the news.

The economy shrank at a 6.3% annualized rate. The preliminary number was 6.2%. Economists are expecting Q1 2009 GDP to be in the range minus 5% to 6%. That’s something of an improvement and should be bad news as long as . . .

Stocks are climbing higher during Wednesday trading on a new government reports that February brought increases in demand for big-ticket manufactured goods and higher sales of new homes.

At 1:44 pm ET, the Russell 2000 (NYSE:IWM) is up 3.89, or 0.93%, at 420.67, while the Dow is up 0.40% at 7,690.63 and the S&P 500 is up 0.12% at 807.20.

Orders at U.S. factories for cars, airplanes, household appliances, furniture and other large goods rose 3.4% last month, much better than analysts' predictions of a drop of 2%.

New home sales rose 4.7% in February to a seasonally adjusted annual rate of 337,000. The month was still the worst on records dating to 1963, but economists were expecting February sales to fall to a pace of 300,000 units.

Small caps on the move today include ARYx Therapeutics (Nasdaq:ARYX), up over 20% ahead of fourth-quarter and year-end 2008 results scheduled to be released on Thursday at 8 am ET.

******Yesterday, I suggested that this rally was unlikely to retrace much ground and give buyers an attractive entry point. I went on to recommend a position in homebuilder Hovnanian Enterprises (NYSE:HOV).

Well, today stocks are pushing higher and Hovnanian is up 20% from yesterday’s closing price of $1.52.

Graham Corp. (AMEX:GHM) is pushing higher, too. It’s up 7% today and 13% since last Thursday’s recommendation.

If you bought either stock, I’d love to hear from you. Drop me . . .

Stocks navigated choppy trading Tuesday afternoon, following nearly two weeks of consistent gains.

At 1:55 pm ET, the Russell 2000 (NYSE:IWM) is down 8.48, or 1.96%, at 425.54, while the Dow is down 0.29% at 7,753.08 and the S&P 500 is down 0.60% at 817.97.

Investors watched as Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner testified in Congress today over bonuses at AIG. Geithner asked Congress for greater power to safely dismantle giant financial companies such as AIG that pose risks to the economy.

Oil is hovering around $52 per barrel, and has risen more than 30% this month.

******497? What, the Dow Industrials can’t crack 500 points?

I’m kidding, of course. That was some impressive rally. The biggest one-day rally since October 28, 2008. And on the heels of Geithner’s re-hashing of Paulson’s bank bailout plan, too.

In Monday’s Small-Cap Daily, I wrote that most economists thought Geithner’s Public-Private Investment Program was an important step in freeing up our banking system to start lending. The smattering of opinion that was available Sunday night seemed to be positive.

By Monday morning, it was decidedly negative. Here’s a quote from Paul Krugman from the NY Times:

“…the real problem with [Geithner’s] plan is that it won’t work. Yes, troubled assets may be somewhat undervalued. But the fact is that financial executives literally bet their banks on the belief that there was no housing bubble, and the related belief that unprecedented levels of household debt were no problem. They lost that bet. And no amount of financial hocus-pocus — for that is what the Geithner plan amounts to — will change that fact.”

His views are shared by other notable economists including John Galbraith and Mark Zandi.

But analysts and strategists are saying that the Public-Private Investment Program, as it’s apparently called, could work. Or at least it will help. PIMCO’s Bill . . .

Small-cap stocks opened lower but battled back to steady levels, pressured by profit-taking after Tuesday’s big FOMC rally. Weak profit news on the financial front and lingering worries about the recession prompted a pause in the updraft, which saw small-caps climb to the highest daily close Tuesday since mid-November.  Some of today’s small-cap gainers are Cadence Pharmaceuticals Inc. (NYSE:PCH), Telvent  (Nasdaq:TLVT) and Joy Global (Nasdaq:JOYG).

Other Market Watch highlights today included:

• This morning, the yield on benchmark 10-year notes was down a whopping 6%, indicating strong demand for underlying Treasury securities.  
• The only physical product making huge waves right now is the cocoa market, which rose to 22-year highs in London trading.  
• Commodities should find underlying support from the recent slide in the U.S. dollar, which tumbled to 13 ½-year lows against the yen today.  
• Emerging market stocks found support overnight, with Hungary’s beaten down stock market climbing 6% amid gains in oil and gas stocks.

Small Cap Gainers:

• Cadence Pharmaceuticals Inc. jumped 48% on news of a positive trial for a post-surgery abdominal pain drug. See (NYSE:PCH).
• Telvent Oversees Lan-Zheng-Chang liquid pipeline operation, the largest liquid pipeline in China. Shares rise 13%. See (Nasdaq:TLVT).  
• Joy Global up 11% after Q4 profit rises on strong demand. See (Nasdaq:JOYG). 
• Energy Conversion Devices is climbing above 10% despite a maintained "sell" rating by Citi. See (Nasdaq:ENER).  

Small Cap Losers:

• Gibraltar Steel Corp. gapped lower and shed 26% building products manufacturer updated guidance and announced the closure of a manufacturing facility. See (Nasdaq:ROCK).  
• Soleil Securities initiates coverage on Ducommun with a "sell;" shares fall 13%. See (NYSE:DCO).
• QBE Insurance Group Limited completes PMI Asia acquisition. Shares of PMI are down 10% on the news. See (NYSE:PMI).  
• Small-cap homebuilder Hovnanian Enterprises Inc. missed the earnings forecast and HOV shares were off 7.5% shortly after the open. See (NYSE:HOV).

Small-cap stocks opened lower but battled back to steady levels, pressured by profit-taking after Tuesday’s big FOMC rally. Weak profit news on the financial front and lingering worries about the recession prompted a pause in the updraft, which saw small caps climb to the highest daily close Tuesday since mid-November. At 9:56 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.11, or 0.02%, at 482.74.

Ahead of the opening, Morgan Stanley (NYSE:MS) announced a larger-than-expected quarterly loss, which could weigh on financial shares early today. MS stock was off 4.3% immediately after the open and financial stocks were on the defensive. Tech stocks were soft early as well, with bellwether Apple Inc. (Nasdaq:AAPL) off 4.6% on concerns about the health of CEO Steve Jobs.

The weekly MBA Mortgage Application Index rose 2.9%, bolstered by a pickup in refinancing, with the MBA’s refinance sub-index climbing 6.5%. The rise in activity was powered by a slide in mortgage rates, which hit the lowest point last week since June 2003. A recent spike in mortgage activity, coupled with talk that the Federal Reserve will target mortgage rates has been a boon to homebuilder stocks, with the ISE Homebuilder Index soaring 78% from the Nov. 21 low. This morning, however, homebuilders appear to be in correction mode with the overall market. On the company news front, small-cap homebuilder Hovnanian Enterprises Inc. (NYSE:HOV) missed the earnings forecast and HOV shares were off 7.5% shortly after the open.

Crude oil prices drifted back and forth between positive and negative territory into the stock market open today, as the market braced for a production cut from this week’s OPEC meeting. Emerging market stocks found support overnight, with Hungary’s beaten down stock market climbing 6% amid gains in oil and gas stocks. Commodities . . .

Spectranetics Corp. (Nasdaq:SPNC), Volt Information Sciences Inc. (Nasdaq:VOL) and Blyth Inc. (Nasdaq:BTH) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Opnext Inc. (Nasdaq:OPXT), Hovnanian Enterprises Inc. (Nasdaq:HOV), Houston American Energy Corp. (Nasdaq:HUSA), Acme Packet Inc. (Nasdaq:APKT), Northern Oil and Gas Inc. (Nasdaq:NOG) and Diamond Management & Technology Consultants Inc. (Nasdaq:DTPI).

Here are the biggest percentage losers among small caps:

Small-cap stocks opened lower, pressured by concerns on the jobs front ahead of Friday’s big employment report. In addition, money flow appeared to favor “safe haven” routes like Treasury products to the detriment of equities. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.70, or 1.17%, at 733.20.

The ISM Non-Manufacturing Survey came in at 50.6, which was above the forecast of 49.5. However, the employment sub-index slipped to 45.4, compared with 47.1 last month, which offset some of the bullish implications of the headline number.

The ISM data marked the final piece of data on a very busy morning for economists. Earlier this morning, investors had to navigate through the ADP employment survey, weekly unemployment claims and the productivity report. For the record, the ADP report came in at minus 33,000, which was worse than the forecast for a dip of 20,000; the weekly unemployment claims were at 424,000, which was basically in line with the 423,000 forecast; and the productivity report came in at 4.3%, which was way ahead of the 3% projection. Who knows why productivity surged this summer (lower pay and more work by employees perhaps?), but the productivity report was basically ignored and the market remained on the defensive primarily on the ADP data.

Even though the ADP report hasn’t had a very strong correlation to the actual Labor Department report, investors are still nervous ahead of Friday’s big event. The employment report is expected to show a decline of 71,000 on non-farm payrolls, with the unemployment rate at 5.8%.

It is worth noting that interest rates continue to push lower. Rates work inversely to credit instruments, which means that demand for bonds and notes is strong. The rate on the benchmark 10-year note tumbled to the lowest point this morning . . .

Small-cap stocks are expected to open lower, pulled down by employment jitters stirred by a private jobs survey ahead of Friday’s big report, and by losses on equity markets around the world overnight. The Russell 2000 (NYSE:IWM) was off about 0.4% in after-hours trading, which would suggest an open near 739.

The weekly unemployment claims report came in at 424,000, which was in line with the forecast of 423,000. Also, the productivity release was at 4.3%, well ahead of the 3% projection.

Also, ahead of the open, the ADP National Employment Report came in at minus 33,000, which was worse than the consensus forecast for a dip of 20,000. This could raise the caution flag ahead of Friday’s big monthly employment release, and indeed, stock index futures extended declines after the report came out. However, it should be noted that the ADP report has not been tracking well with the employment survey for quite some time.

Crude oil prices were up about $0.70 a barrel toward the $110 level as refineries in the Gulf of Mexico were still shuttered from the storms, even though Gustav did not wreak significant damage to the facilities. The market will get weekly inventory later this morning at 10:35 a.m. ET, which could stir some volatility in the commodity mix. The U.S. dollar was hovering near steady levels, despite being buffeted from all sides by reams of economic data in the U.S. and a host of central bank meetings in Europe.

Stocks on the move overnight include Navistar International Corp. (NYSE:NAV), which rallied more than 10% after posting strong earnings. In addition, Wal-Mart Stores Inc. (NYSE:WMT) was up about 0.7% on impressive August . . .

Hovnanian Enterprises Inc. (NYSE:HOV) shares are up more than 16% today on news the company’s chairman bought 220,000 shares of common stock. In a Securities and Exchange Commission filing on Monday, Kevork Hovnanian, chairman of the board, disclosed that he purchased them on July 3. Shares of the Red Bank, N.J.-based homebuilder are trading at $5.42 at 2:22 ET, up $0.78 from Monday’s close.

Pricesmart Inc (Nasdaq:PSMT), BancTrust Financial Group Inc (Nasdaq:BTFG) and AH Belo Corp (Nasdaq:AHC) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Nanosphere Inc (Nasdaq:NSPH), Hovnanian Inc(Nasdaq:HOV), Ames National Corp (Nasdaq:ATLO), Severn Bancorp Inc (Nasdaq:SVBI), Stage Stores Inc (Nasdaq:SSI) and VeriFone Holdings Inc (Nasdaq:PAY).

Here are the biggest percentage gainers among small caps:

Hovnanian Enterprises, Inc. (NYSE:HOV) CEO Ara K. Hovnanian said the homebuilder has endured many market corrections in its 50-year history and remains confident it will emerge a “better, stronger” company when the market recovers. Hovnanian made the comments during a midday conference call.

“One thing is certain – homebuilding is here to stay. Virtually every demographer and actuary agree that the population and number of households are growing at a faster pace this decade and the next than any of the last three decades,” the chief executive said. “This should ultimately lead to greater housing demand than in the past.”

Citing the cyclical nature of the market, Hovnanian said the housing market will eventually recover to more normalized levels. The CEO said another positive development for the Red Bank, N.J.-based firm is that many companies are leaving the housing market.

“There are far fewer competitors in the housing industry, as under-capitalized private builders are closing their doors all around the country each and every month. Many of the private builders that do survive will be severely constrained,” Hovnanian said. “Increasing demand and greatly reduced competition creates a very favorable financial environment for the remaining homebuilders that have ample liquidity.”

The homebuilder is implementing a multi-pronged strategy to increase liquidity, the CEO said. To increase cash flow from operations, Hovnanian said the firm has reduced overhead costs and is spending less on land and land development than the company. Selling common shares to investors as a secondary offering was another strategy the firm has used to increase liquidity, Hovnanian said.

“Through the combination of our ability to generate cash internally together with the issuance of secured bonds and an amendment to our credit facility, we have . . .

Small-cap shares hovered near steady levels, trimming away opening losses tied to ongoing concerns in the financial sector amid reports that banks and brokerages need to raise capital. Another slip in crude oil prices likely muted selling interest in equities. At 10:05 a.m. ET, the Russell 2000 (NYSE:IWM) was off 0.66, or 0.09%, at 738.35.

Lehman Bros. (NYSE:LEH) remains at the eye of the latest financial storm, and was trading down 3.4% shortly after the open after tumbling 9.4% Tuesday on persistent talk that the brokerage firm would need to raise capital to shore up the balance sheet. The banking concerns were fanned overnight when ratings agency Fitch said that a couple of large French banks needed to raise capital. The European stock market took a hit on those concerns, losing about 2% heading toward the U.S. open.

The market navigated through a series of economic data this morning, with the final report from the ISM Non-Manufacturing Survey coming out at 10:00 a.m. ET. The ISM data came in at 51.7%, which was above the 51% forecast. There was a brief upside pop on the ISM release, but it didn’t appear to hold trader attention for long.

Earlier today, the ADP private employment survey showed a surprise rise in new jobs in May, which tugged stocks off overnight lows at the time, but had little staying power into the morning trade. In addition to ADP payrolls, the market saw a productivity report that came in just above the forecast at 2.6%, and an MBA mortgage application index that was at six-year lows. The trading shelf life on all of these data releases was collectively short. Later this afternoon near 2:00 p.m. ET, Federal Reserve Chairman Ben Bernanke will speak at Harvard, but his speech topic is titled “Economic Challenges: 1975 and Now” and he’s not taking questions, so it’s unlikely his appearance will stir the market. That said, foreign exchange markets were still buzzing about his rare direct comments on the dollar from Tuesday, which sparked a rally in the greenback.

The opening slide in stocks took place in the face of soft crude oil prices, which shows that the market does have more on its mind right now than just the energy market. Crude oil prices slipped $124 dollars a barrel overnight, pressured by news that India and Malaysia raised fuel prices, which could crimp demand out of Asia. The weekly oil inventory data should come out around 10:35 a.m. ET, which could spark a . . .

The Russell 2000 (NYSE:IWM) posted a large increase for the second consecutive session on upbeat financial and housing news. The small-cap index advanced 19.86 points, or 2.91%, to 701.28. The Dow Jones Industrial Average (INDU) rose 187.32 points, or 1.52%, to 12,548.64.

On a year-to-date basis, the Russell 2000 has declined 8.45%, while the Dow is down 5.40% and the S&P 500 has lost 8.07%.

Stocks small and large began the day in the green on news before the start of trading that investment bank JPMorgan Chase & Co. (NYSE:JPM) has raised its offer for Bear Stearns (NYSE:BSC) to $10 a share from $2 a share. The move is in response to disgruntled employees at Bear Stearns complaining that the original bid was too low.

The bulls gained strength at 10 a.m. ET, when the National Association of Realtors reported that sales of existing homes rose 2.9% to an annual rate of . . .

The Russell 2000 (NYSE:IWM) raced ahead on news that a manufacturing index declined less than expected. The small-cap index advanced 17.29 points, or 2.60%, to 681.42. The Dow Jones Industrial Average (INDU) climbed 261.66 points, or 2.16%, to 12,361.32.

On a year-to-date basis, the Russell 2000 has shed 11.05%, while the Dow is down 6.81% and the S&P 500 has retreated 9.46%.

Small-cap stocks opened with a modest rise but picked up steam after 10 a.m. ET, when the Philadelphia Federal Reserve reported that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.

The report is the most-watched regional manufacturing index, considered to be a barometer of manufacturing nationwide. Investors disregarded the fact that the data represent the longest period of contraction in five years and pushed stocks higher.

In other bullish news, an analyst said that mortgage purchases by Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) will help right the mortgage market. Today the federal government adopted changes that allow the two companies to invest more in mortgages and related securities.

The Russell 2000 (NYSE:IWM) posted a decline as investors consolidated their positions following Tuesday’s big rally. The small-cap index declined 17.80 points, or 2.61%, to 664.13. The Dow Jones Industrial Average (INDU) lost 293 points, or 2.36%, to 12,099.66.

On a year-to-date basis, the Russell 2000 has shed 13.30%, while the Dow is down 8.78% and the S&P 500 has let go 11.57%.

Small-cap stocks opened in the green but lost steam and reversed midway through the session. The bullish sentiment in the morning was partially attributed to news that Morgan Stanley (NYSE:MS) beat analysts’ expectations despite reporting a decline in fiscal first-quarter profit.

That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

The Russell 2000 (NYSE:IWM) closed with a remarkable gain following news that the U.S. Federal Reserve has lowered its target interest rate. The small-cap index rose 31.45 points, or 4.83%, to 681.93. The Dow Jones Industrial Average (INDU) advanced 420.41 points, or 3.51%, to 12,392.66.

On a year-to-date basis, the Russell 2000 has retreated 10.98%, while the Dow is down 6.57% and the S&P 500 has let go 9.37%.

Small-cap stocks soared higher than their larger counterparts and added to their earlier gains on news after the start of trading that the U.S. Federal Reserve has decided to lower its target interest rate 0.75% to 2.25%.

“Recent information indicates that the outlook for economic activity has weakened further,” the Fed said in a statement. “Growth in consumer spending has slowed and labor markets have softened.”

The market had priced a full 1% of the federal funds rate, the rate at which commercial banks make overnight loans to each other, but policymakers expressed concern about inflation.

The Russell 2000 (NYSE: IWM) posted a big loss as news of liquidity problems at Bear Stearns spread credit fears. The small-cap index fell 16.81 points, or 2.47%, to 662.90. The Dow Jones Industrial Average (INDU) declined 194.65 points, or 1.60%, to 11,951.09.

On a year-to-date basis, the Russell 2000 has lost13.46%, while the Dow is down 9.90% and the S&P 500 has retreated 12.27%.

Stocks small and large tumbled today on news that Bear Stearns’ (NYSE: BSC) cash position has deteriorated significantly over the past 24 hours. The investment bank, which has been highly exposed to the subprime mortgage sector, turned to J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve for short-term financing to alleviate its liquidity problems.

There’s speculation that Bear Stearns will soon be purchased by one of its larger rivals. News of the company’s problems spread fears of a severe credit squeeze, leading to a sharp sell-off.

The Russell 2000 (NYSE: IWM) reversed earlier losses and posted a solid gain as investors embraced news of a report that the end of writedowns is near. The small-cap index climbed 12.43 points, or 1.86%, to 679.74. The Dow Jones Industrial Average (INDU) advanced 35.50 points, or 0.29%, to 12,145.74.

On a year-to-date basis, the Russell 2000 has shed 11.26%, while the Dow is down 8.44% and the S&P 500 has decreased 10.41%.

Stocks small and large opened with steep declines but managed to recover midway through the session on news of a report by rating agency Standard & Poor that said the end is in sight for writedowns stemming from the mess in the subprime mortgage sector.

Also helping the bulls establish their dominance was news of a bill proposed by House Financial Services Committee chairman Barney Frank that would allow the U.S. Federal Housing Administration to refinance mortgages that have been written down by lenders.

Small-caps confidently moved into the green at about 12 p.m. ET and never looked back.

The bearish mood in the morning was partially due to news from the U.S. Commerce Department before the opening that retail sales dropped 0.6% in February, defying economists’ forecasts for an increase of 0.2%.

The Russell 2000 (NYSE: IWM) posted a stunning rise on news the U.S. Federal Reserve has moved to increase liquidity. The small-cap index jumped 29.84 points, or 4.63%, its largest increase this year, to 673.81. The Dow Jones Industrial Average (INDU) added 416.66 points, or 3.55%, to 12,156.81.

On a year-to-date basis, the Russell 2000 has declined 12.04%, while the Dow is down 8.35% and the S&P 500 has let go 10.06%.

Stocks soared out of the gate on news before the start of trading that the U.S. Federal Reserve and four other central banks will make expanded loans of cash and securities to financial institutions in an effort to ease the credit squeeze and keep the economy growing.

The Fed said it will lend up to $200 billion of Treasury securities to primary dealers for a term of 28 days. The U.S. central bank usually makes such loans overnight.

The Russell 2000 opened strong and bobbled in the green until halfway through the session, when it settled on an upward trajectory.

The Russell 2000 (NYSE: IWM) closed with a steep loss as recession fears spread on Wall Street. The small-cap index fell 16.14 points, or 2.45%, to 643.97. The Dow Jones Industrial Average (INDU) lost 153.54 points, or 1.29%, to 11,740.15.

On a year-to-date basis, the Russell 2000 has declined 15.93%, while the Dow is down 11.50% and the S&P 500 has shed 13.28%.

The bears dominated the session today as the specter of recession loomed in the background. Friday’s disappointing jobs report, which showed that payrolls plunged 63,000 in February, led many economists to conclude that the U.S. economy is either in or will soon be in a recession.

A report by investment bank The Goldman Sachs Group, Inc. (NYSE: GS) released before the start of trading forecasts that the U.S. Federal Reserve will respond by lowering its target federal funds rate to 2% by late April to give the economy a boost.

The federal funds rate, the rate commercial banks charge each other for overnight loans, currently stands at 3%.

The Russell 2000 was on a steady decline from the start of trading, slowly sliding lower throughout the course of the day. Today’s declines were led by shares of steel companies and shares of companies in the financial services industry.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices have extended their losses on news of sales declines at U.S. carmakers. At 3:34 p.m. ET, the small-cap index was missing 4.95 points, or 0.72%, to 681.23. The Dow Jones Industrial Average (INDU) had let go 32.48 points, or 0.26%, to 12,233.91.

Stocks extended their slide following news after the start of the trading that General Motors Corp. (NYSE: GM) saw its sales dropped 13% in February, while rival Ford Motor Co. (NYSE: F) reported a 6.6% decline.

The numbers show a shift away from large gas-guzzling automobiles and toward smaller and more fuel efficient cars.

Before that, small-cap stocks were also lower but trading closer to the flat line following news of government reports indicating declines in January construction spending and February factory activity.

Shares of Irwin Financial Corp. (NYSE: IFC) are down on news before the start of trading that the Columbus, Ind.-based financial services company announced before Monday’s opening that it plans to suspend quarterly dividends.

The Russell 2000 (NYSE: IWM) moved up as news of a stock buyback program by International Business Machines Corp. (Nasdaq: IBM) overshadowed worrisome economic reports. The small-cap index added 6.86 points, or 0.97%, to 717.32. The Dow Jones Industrial Average (INDU) gained 114.70 points, or 0.91%, to 12,684.92.

On a year-to-date basis, the Russell 2000 has declined 6.36%, while the Dow is down 4.37% and the S&P 500 has decreased 5.93%.

The major U.S. indices interrupted their early-session volatility to post gains on news that IBM has approved a $15 billion stock buyback. The Armonk, N.Y.-based tech giant said that the buyback will boost its 2008 profit.

The announcement came at around 11 a.m. ET, and immediately sent stocks small and large flying.

The U.S. Labor Department reported that producer prices increased 1% in January, more than the expected 0.4%.

The numbers tell us that inflation pressures remain a worry despite the slowing economy.

Meanwhile, the Conference Board announced that its index of consumer confidence fell to a five-year low of 75.0 in February, down from 87.3 in January. A pullback in consumption will spell trouble for the economy, because consumer spending is about 70% of U.S. gross domestic product.

The Russell 2000 (IWM) and the other major U.S. indices lost big today as news of a steep decline in the services sector led to recession fears. The small-cap index let go 21.88 points, or 3.02%, to 701.58. The Dow Jones Industrial Average (INDU) was off 370.03 points, or 2.93%, to 12,265.13.

On a year-to-date basis, the Russell 2000 has shed 8.41%, while the Dow has retreated 7.54% and the S&P 500 has shed 8.97%.

The bears ran the show today as news of an unexpectedly deep drop in U.S. services in January sparked a sell-off.

The Institute for Supply Management said that its index of non-manufacturing dropped to 41.9 in January from 54.4 in December. The result is far worse than the one expected by economists. A reading above 50 is a sign of growth.

Services comprise about 75% of U.S. gross domestic product and a decline would surely throw off an economy already beset with a slump in the housing sector, a credit squeeze and a pullback of consumer spending into recession.

Or maybe a recession has already started.

Either way, investors reacted to news of the biggest one-month decline in services in seven years by selling everything in sight. The makers of construction and raw materials suffered the most, follower by insurance companies and those manufacturing agricultural machinery. No single group of stocks posted a gain.

Separately, Banc of America Securities contributed to the bearish mood when it downgraded Yahoo! Inc. (Nasdaq: YHOO) to “neutral” from “buy.”

The Russell 2000 was trending down during the entire session, skidding to its lowest level at the close.

The Russell 2000 (IWM) jumped earlier and higher than the other major U.S. indices as upbeat financial news sparked a rally. The small-cap index soared 17.81 points, or 2.56%, to 713.30. The Dow Jones Industrial Average (INDU) added 207.53 points, or 1.67%, to 12,650.36.

On a year-to-date basis, the Russell 2000 has declined 6.88%, while the Dow has let go 4.63% and the S&P 500 has retreated 6.12%.

Wall Street made a remarkable turn around today and posted strong gains following news midway through the session on news that bond issuer MBIA Inc. (NYSE: MBIA) will retain its top rating despite posting a record quarterly loss.

News reports quote MBIA’s CEO Gary Dunton as saying he is confident his company will maintain its AAA rating as it takes measures to raise capital.

That calmed investors and allowed the bulls to take center stage.

According to other news reports this afternoon, major rating agencies will hold off on downgrading the Armonk, N.Y.-based company, which primarily guarantees municipal bonds.

A downgrade will make it difficult for MBIA to find clients and will lower the value of many of the bonds that it insures. In turn, that will lead to a wave of write-offs at banks and other financial institutions and make it more difficult for the issuers of municipal bonds to raise capital.