Tag - NYSE:HPQ

t's not easy for large institutions to reinvent themselves. Look at Blockbuster (BLOAQ.PK) - the video rental outlet was asleep at the wheel while Netflix (Nasdaq: NFLX) and Coinstar (Nasdaq: CSTR) zipped right past it to grab market share. Blockbuster soon crumbled into bankruptcy.

Even mega-cap multinationals like International Business Machines (NYSE: IBM) have faced similar challenges. The need to innovate in a complex and rapidly developing competitive landscape means nothing is assured.

Battered stocks limped to a dismal Monday close, with the Dow and S&P 500 falling to levels seen in 1997 as investors continue to pull money out on decreased confidence.

“People left and right are throwing in the towel," Keith Springer, president of Capital Financial Advisory Services, told the Associated Press.

The Russell 2000 (NYSE:IWM) closed down 16.38, or 3.99%, to $394.58, while the Dow fell 3.4% to close at a staggering 7,114.94, and the S&P 500 tumbled 3.47% to end the day at 743.33. For the year, the Russell is now down 21%, the Dow is down 18.93% and the S&P 500 is down 17.7%.

News out today that the Treasury Department would start a new, revamped bank bailout program that would include the option of allowing the government to increase its ownership in financial institutions did little to support investor confidence.

Although the Obama administration doused rumors last week of a potential plan to nationalize banks, the Treasury said today that beginning on Wednesday, the 20 largest U.S. banks will be required to undergo a new “stress test.” The government test will determine whether each institution has enough capital to survive any further economic spirals. More details surrounding the stress test will be released on Wednesday by the Treasury, though it did divulge today that if any . . .

Small-cap stocks had an up and down session Tuesday, but in the end the bulls won the skirmish. Support from new government credit rescue plans was juxtaposed against soft economic news, weak tech stocks and a market that may have been ready for a breather after two days of manic gains. The Russell 2000 (NYSE:IWM) was up 6.39, or 1.46%, at 443.18 and is now down 42% for the year. The Dow and S&P 500 lagged gains in small caps, but also closed higher and are now down 36% and 42% for 2008, respectively.

Technology stocks were a drag on the market today, as the tech-laden Nasdaq-100 persistently underperformed the rest of the market and shed 1% on the day. Bellwether tech stocks such as Hewlett-Packard Co. (NYSE:HPQ), Cisco Systems Inc. (Nasdaq:CSCO) and Research in Motion Ltd. (Nasdaq:RIMM) took a hit, with HPQ down 5.8%, CSCO off 5.9% and RIMM down 8.3%. Analyst downgrades and worries about spending for technology in a difficult global environment seemed to counter optimism about the new credit facilities throughout much of the day.

The market started out on a positive tone Tuesday, as the government unveiled plans to open credit facilities for mortgage debt and asset-backed consumer products such as student loans, car loans and credit card products, which is hoped will further spark lending interest and help pull the economy out of the doldrums.

Speaking of the economy, the latest read on third-quarter GDP came out today, and as expected the U.S. economy contracted by 0.5%, a sobering thought considering most market watchers expect things to get quite a bit worse in the fourth quarter. Another contraction in GDP in the final quarter of the year would be enough for an “official” recession label, but many argue that we’ve been in a recession for several months already. In addition to the GDP report, a report on housing showed that home prices generated the largest decline on a year-over-year basis on record, but a reading on consumer confidence actually came in above the forecast, a mild upbeat note heading into the big “Black Friday” shopping bonanza in the United States.

The U.S. dollar took a hit versus the euro today, slipping about 0.8%, which should have helped support commodities. But the commodity all of us watch the . . .

Small-cap stocks went into yet another tailspin Tuesday, sinking to fresh bear market lows, unable to sustain morning enthusiasm tied to a positive outlook from a major PC-maker, instead focusing on the global recession, slumping homebuilder confidence and money flow into credit instruments. However, the market staged a brilliant late-session comeback bounce, repeating our recent pattern of seeing wild price swings in the final hour of trading. The Russell 2000 (NYSE:IWM) closed down 3.79, or 0.84%, at 447.51, which marked the lowest daily close since June 2003.

Small caps were hammered relative to large caps, with the Dow closing up 1.83% on the day. For the year, the Russell is now down 42%, while the Dow is down 36% and the S&P 500 is down 41%. Just a few weeks ago, the Russell was only down about 2% for the year while the Dow was down 12%; as the market has collapsed investors have clearly shied away from riskier investment fare as there is a perception in times of crisis that big is better.

Speaking of risk aversion, money appeared to moving into credit markets today, with the yield on benchmark 10-year notes down 2.94%. Yields move inverse to price, so the slide in yields reflects demand for the Treasury product. The decline in yields appeared to pick up speed after the National Association of Home Builders/Wells Fargo Housing Market Index stumbled to the lowest point since the index was created back in 1985. The NAHB report effectively cut off at the knees any enthusiasm from a jump in Southern California home sales, especially heading toward the housing starts report Wednesday morning. That separate report on sales in SoCal showed a big surge in volume, but it came at the expense of price as bargain hunters snatched up a large batch of foreclosed homes at a big discount. There are many who say that the genesis of this global crisis dates back to the housing market collapse and they believe that we won’t see a bottom in the market until we see a foundation built for housing prices.

There is also a pocket of market watchers who believe that equities will have a hard time establishing a bullish foothold it is known what steps will be taken to shore up embattled automakers. General Motors Corp. (NYSE:GM) tumbled some 9% today as Treasury Secretary Henry Paulson said on Capital Hill that the $700 billion financial bailout plan should not be applied to automakers. Even as Paulson and Federal Reserve Chairman Ben Bernanke were busy updating progress on the TARP, auto executives were busy telling the Senate Banking Committee that they need a massive bailout to avoid not just a collapse for domestic vehicle firms, but also the nation’s . . .

Small-cap stocks vacillated back and forth in positive and negative territory into the midday time frame, with support from a pocket of upbeat earnings, an optimistic outlook from major PC-maker Hewlett-Packard and strong energy shares countering a soft tone in financials, tech stocks and ongoing concerns about the fragile global economy. At 12:41 p.m. ET, the Russell 2000 (NYSE:IWM) was down 3.17, or 0.70%, at 448.12, lagging mild gains in the broad S&P 500 and large-cap Dow.

Energy stocks were among the best performers so far today as crude oil prices reversed overnight losses and investors looked to find bargains in the downtrodden sector. The Energy Select Sector SPDR Fund was up more than 2% at mid-session. Elsewhere on the commodities scene, analysts at JP Morgan said that commodity prices – especially agriculture products – should outperform energy and industrial raw material products in 2009.

Hewlett-Packard Co. (NYSE:HPQ) stunned investors this morning by not only reaffirming the current profit outlook, but by raising guidance for next year, breaking a long string of corporate expectations that were forecasting declines. If the world’s largest computer maker was still looking at greener pastures next year, then investors reasoned it could spread to a host of entities. HPQ was up some 12%. Elsewhere on the big-cap earnings front, Home Depot Inc. (NYSE:HD) topped the profit forecast and jumped 6%.

That’s not to say that everything was rosy among the earnings releases today. Corning Inc. (NYSE:GLW), who makes the flat glass to stick on all those flat-panel television monitors and computer screens, said fourth-quarter revenue will fall short of expectations. GLW stock was off 15% at midday.

In the small-cap universe, DHT Maritime Inc. (NYSE:DHT), a tanker ship operator, jumped 17% after releasing earnings numbers today. Chiquita Brands International Inc. (NYSE:CQB) rallied 17% amid analyst upgrades for the banana producer. Tetra Technologies Inc. (NYSE:TTI) jumped 15% as the oil and gas services company tries to mount a comeback after sinking to fresh lows last week. On the downside, Las Vegas Sands Corp. (NYSE:LVS) slumped 16% as the embattled casino operator hovers near record lows even though auditors recently removed doubts . . .

Small-cap stocks are expected to open lower, pressured by slumping equity markets around the world overnight, with Europe off some 2% and emerging markets down 3%. Bank stocks, mining companies and oil services shares were soft overseas, flashing a broad-based show of weakness, but stock index futures bounced solidly off the morning lows when a key technology firm raised guidance this morning. Stock index futures were off about 1% ahead of the opening, which suggests the Russell 2000 (NYSE:IWM) will open near 447.

The PPI report headline figure came in at minus 2.8%, which was a much bigger decline than the forecast of 1.8%. Stock index futures were in the midst of a hard bounce off the lows ahead of PPI, and pulled back slightly after the inflation headlines. Now that the PPI data is out of the way, investors await an appearance on Capital Hill from Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, slated to begin around 9:30 a.m. ET.

Looking at market activity around the world, Japan was down 2.2%, Hong Kong off 4.5%, China down 7.4%, Taiwan down 3%, Australia off 3.2%, South Korea down 4% and India off 3.8%.

On the individual company scene, there were some pockets of bullish news this morning.
Hewlett-Packard Co. (NYSE:HPQ) jumped more than 10% after the firm raised guidance, which has been unheard of in this difficult environment. Clearly, stock index futures bounce off the lows on the HPQ news. In other corporate news, Yahoo Inc. (Nasdaq:YHOO) showed double digit advances overnight on news that the . . .

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 are expected to push higher Tuesday, extending the run from Monday’s GSE takeover. There was an improved tone on the tech front early today, which was an encouraging sign since tech stocks have been lagging lately on concerns about global growth and a reduction in spending on technology. Also, crude oil futures tumbled to five-month lows, which will help the consumer spending outlook. S&P 500 futures were up about 0.3% in after-hours trading, which would suggest an opening for small-caps in the 735.00 range.

Agency and mortgage backed security debt rallied significantly in the wake of the GSE news, which pulls down mortgage interest rates, one important component of the GSE plan that will help — but not necessarily save — the troubled housing sector.

As for tech stocks, bellwether Hewlett-Packard Co. (NYSE:HPQ) was up 2% in overnight trading and Nasdaq futures were 0.6% higher after struggling well behind the other index products in recent days.

Crude oil prices turned lower ahead of the opening, sinking some $2 a barrel toward $104.30, slipping to five-month lows in the process. Sellers were still prominent in oil even though Hurricane Ike was pressing into the Gulf of Mexico. OPEC leaders were meeting in Vienna today, but were expected to hold output targets in place. The OPEC meeting is slated to begin around 9:00 a.m. ET.

Looking at the chart picture, we see that the market was able to hold above the opening gap Monday despite a steep pullback off the morning highs. When . . .

Small-cap stocks finished out an up and down session Wednesday with a mild profit after spending much of the day getting bounced around by turbulent price action in crude oil futures. The Russell 2000 (NYSE:IWM) eventually closed up 1.54, or 0.21%, at 731.60 and is now down 4.49% for the year. The Dow closed up 0.61%, while the S&P 500 was up 0.62%. The Dow is off 13.9% for the year, while the S&P 500 is down 13.2%.

The frenetic action in crude oil overshadowed a positive story in the tech arena following upbeat results by the world’s largest computer maker and shuffled big overnight gains in Asian stocks into the backdrop as well.

Crude oil prices plunged to a morning low at $112.61, as the weekly inventory report showed a surprising increase in stockpiles, but then the market reversed course as the energy traders were uneasy with Russia’s response to a missile deal between the United States and Poland, especially with tensions rising between the U.S. and Russia over the Georgian conflict. For the day, crude oil traded in a wildly wide range between $112.61 and $117.03 and closed up $0.45 at $114.98. Goldman Sachs analysts also reiterated their call for $149 crude oil prices by the end of the year, which probably won’t sit well with long-term equity market bulls if it pans out.

The U.S. dollar remained firm against the euro despite the afternoon surge in crude oil, and a strong tone in the greenback remains a potential positive for equities — reflecting global confidence in U.S. assets, even if some of that confidence is really more a lack of faith in other economies around the world. Elsewhere on the commodity inflation front, corn, soybeans and wheat shot higher and the Commodity Research Bureau Index of 19 key physical markets rose about 0.7%.

Although financial shares performed much better today than they fared Monday and Tuesday, it was hard to look past the dramatic free fall in government-sponsored enterprises (GSE), with Fannie Mae (NYSE:FNM) collapsing 25% and Freddie Mac (NYSE:FRE) tumbling 21% as investors decided that a government bailout of the 1mortgage financing giants could crush current shareholder value. Both stocks were at their lowest levels in nearly two decades as everyone scrambled for the exit door at the same time. Despite the wipeout in GSEs, major bank stocks and many . . .

After dipping into the red briefly this morning, small caps swung into the green, but remain almost flat midday, as earnings from tech heavy weight Hewlett-Packard, gains in the dollar, and a decline in crude overshadowed concerns surrounding the financial sector, notably Freddie and Fannie’s viability.

At 12:15 p.m. ET, the Russell 2000 (NYSE:IWM) was up 0.50, or 0.07%, at 730.53, while the Dow was up 0.08% and the tech-laden Nasdaq had slipped 0.04%.

The market focused on the positive in the negative news abyss. Hewlett-Packard Co. (NYSE:HPQ), the world’s largest computer maker, posted robust quarterly results that bested the consensus on Wall Street and fueled a surge in the tech-heavy Nasdaq for a good portion of the morning. 

In other positive news, the greenback is gaining against the euro and the yen midday after having trimmed gains earlier in the session. The price moves reflect confidence from overseas investors on the U.S. economy and U.S.-tied assets — including stocks.

As the dollar has rallied, crude oil has turned lower, slipping $1.58 to $112 and change a barrel midday following a report from the Energy Information Administration that oil inventories increased more than forecasted from last week. The commodity has sold off from a surge above $116 a barrel earlier this morning.

Small-cap stocks opened higher, but quickly slipped into negative territory, pulled down by a rally in crude oil prices, which raised a caution flag about consumer spending and inflation trends. An opening burst tied to overseas stock market gains, a firm dollar and strong tech earnings failed to gain traction, but remains a positive element in play looking forward today. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.28, or 0.17%, at 728.80, while the Dow was off 0.34% and the tech-laden Nasdaq 100 up 0.13%.

Tech stocks were lifted by solid quarterly results from Hewlett-Packard Co. (NYSE:HPQ) as the world’s largest computer maker topped the earnings forecast. HPQ shares were up 4.3% shortly after the open.

Crude oil prices were on the rise this morning, climbing more than $1.50 a barrel back north of $116, bolstered by Goldman Sachs analysts reiterating their forecast for $149 crude oil by the end of the year. In addition, energy prices were supported by short-covering in front of today’s weekly inventory report, which is expected to show a drawdown in crude stocks of some three million barrels. The bounce in crude oil prices was taking an early toll on airline stocks, with the AMEX Airline Index tumbling 7%, with small-cap carrier US Airways Group Inc. (NYSE:LCC) off 8%. In addition to the advance in crude oil, grains prices were called solidly higher today, despite a firm tone in the U.S. dollar.

The greenback was in rally mode overnight, rising about 0.3% against both the euro and yen, which suggests some confidence from overseas investors about the U.S. economy and U.S.-tied assets — including stocks. However, those overnight gains in the buck were trimmed after stocks turned lower.

Some confidence in equities heading into the opening was linked to a big rally overnight in the Chinese stock market, which soared 7% on talk that a government stimulus plan was in the works to bolster equities and spark a slowing economy. In addition to China, stocks in Hong Kong were up 2.1%, Taiwan up 0.9%, . . .

Small-cap stocks are expected to open higher, bolstered by solid earnings from tech bellwether Hewlett-Packard Co. (NYSE:HPQ), a strong U.S. dollar and gains in overseas stock markets. The Russell 2000 (NYSE:IWM) was up about 0.3% overnight, which would suggest an opening near 732. It’s worth noting that stock index derivatives were retreating off the highs moving closer to the opening, so perhaps some hangover from two days of steep losses was still in the air.

HPQ, the largest computer maker on the planet, topped the Street estimate for quarterly earnings and climbed more than 3%, allowing investors to set aside concerns about the credit crisis and troubling economic data — especially on a day in which there are no major economic releases to muddy the water. Speaking of minor economic reports, this morning’s Mortgage Applications Index slipped to the lowest point since 2000 as a dip in mortgage interest rates did not attract renewed purchases or refinancing.

The U.S. dollar was on a roll in Asian and European trading time frames, gaining about 0.3% against the euro and against the yen, which suggests some confidence in the U.S. economy and dollar-tied assets.

A rally in crude oil prices could toss cold water on any morning bounce, however, as crude was up about $1.50 dollars a barrel back near the $116 mark. While a rise in crude could support energy shares, the overall impact tends to be negative for the broad market. Grains markets were also expected to push higher today, which could provide a quick reminder of the recent inflation scares seen on consumer . . .

After a rollercoaster morning, small caps stocks are trading shallowly in the green midday, as a deflation in crude oil prices offset somewhat lackluster economic reports.

At 12:44 p.m. ET the Russell 2000 (NYSE:IWM) edged up 3.33, or 0.46%, to 734.04, while the Dow is up 11.07, or 0.09%, to 12,040.13.

Crude has deflated mid-session, following a volatile morning. Crude oil prices initially climbed on supply issues from Africa, but then made an about-face after China said it will raise fuel prices sparking reactions that demand from the oil thirsty nation will decelerate. China has exhibited strong demand for oil, as the government has subsidized fuel prices until today.

As crude slid midday, the greenback gained against the euro and the yen.
In economic news, the Philadelphia Fed’s business outlook survey, which measures general economic activity in the Philly region, clocked in at minus 17.1 for the month of June, substantially below the forecast for minus 10. The prices-paid index for the report hit its highest point since 1980.

Also out this morning, the leading indicators report came in slightly better than forecasted.

Before the opening today, weekly claims data came in slightly above the forecast at 381,000 and the four-week moving average for claims edged higher, which was a mild negative.

Small caps edged higher Friday, underpinned on buying in the tech sector, benign economic data and by traders eager to put money back into stocks after a solid showing this week. Buying interest was curbed however, from those willing to book month-end profits and by lingering concerns about lofty energy and commodity prices. The Russell 2000 (NYSE:IWM) finished out the day up 2.73, or 0.37%, at 748.28.

For the month of May, the Russell rose 4.5%, climbing to the highest monthly close since December. Small caps trounced many of the large-cap index products this month. The Dow was actually down 1.4% in May, while the S&P 500 was up 1%.

The star performers today came from the tech arena, buoyed by impressive earnings from bellwether stock Dell Inc. (Nasdaq:DELL) and by chip designer Marvell Technology Group (Nasdaq:MRVL). The two stocks jumped 6.8% and 23.5%, respectively. The rise in tech stocks today bolstered investor psychology about consumer spending issues amid a difficult economy. Other big-name tech firms attracting buyers today included Cisco (Nasdaq:CSCO) and Hewlett-Packard (NYSE:HPQ). The Philadelphia Stock Exchange’s key index on semiconductor shares (CVE:SOX) jumped 2.3%.

Although tech generated much of the power for today’s move (the Nasdaq was up 0.6%, while the Dow was down 0.06% and the S&P 500 up 0.15%), the insurance business got a lift from American Insurance Group (NYSE:AIG), which gained 2.3% on an upgrade from analysts at Morgan Stanley.

Retailer and beverage shares weren’t joining the buying party however, with Costco (Nasdaq:COST) down 2.4%, Target (NYSE:TGT) down 0.4% and Pepsi (NYSE:PEP) off 0.5%. The S&P Retail Index was off about 0.5% for the day.

The market managed to dodge any potential data pitfalls today, as economic reports on income, inflation, manufacturing purchases and consumer sentiment all basically came in benign. Perhaps the biggest relief was on the inflation front, as today’s personal income report showed that the PCE deflator — considered the . . .

Small caps traded marginally in the green midday, while the other major indices skidded, as oil continued its record-setting skyward hike for the second straight session, stoking inflation concerns.

At 12:48 p.m. ET, the Russell 2000 (NYSE:IWM) edged up 5.1, or 0.69%, to 740.74, while the Dow slumped 39.73, or 0.31%, to 12,788.95.

Crude oil bolted north of $132 a barrel this morning, setting another record after the Energy Department reported a surprising decline in crude inventories last week after reporting gains in inventories for the preceding four straight weeks. After jumping as high as $132.08 a barrel, a barrel of crude retreated slightly to $131.75 midday.

While crude gained, the dollar sold off against the euro and the yen and gold gained $7.80 to $928 per troy ounce.

Midday, oil prices and inflation concerns are the major drivers behind the market; however sentiment and the market’s direction could change when the Federal Reserve releases its FOMC minutes at 2:00 p.m. ET.

In major large-cap headlines, media conglomerate Time Warner Inc. (NYSE:TWX) said this morning that it will separate both structurally and legally from its cable television division Time Warner Cable Inc. Technological juggernaut Hewlett-Packard Co. (NYSE:HPQ) reported after Tuesday’s close that second-quarter earnings increased 16%, noting that growth in the overseas arena offset domestic weakness. However, investors are still pouring over the printer and computer maker’s recent . . .

Small-cap shares edged higher Tuesday, carefully sidestepping yet another record high in crude oil prices, analyst downgrades on brokerages and nagging concerns about pinched consumer pocketbooks. Instead, the focus was on investment money flow out of other products into stocks, yet another “better-than-advertised” key economic report on retail sales and ideas that a bevy of Federal Reserve speakers were tilted toward inflation risk versus sluggish growth worry. For the day, the Russell 2000 (NYSE:IWM) gained 3.62, or 0.49%, to 736.85. After notching the highest daily close since Jan. 3 on Monday, today small caps managed to accumulate the loftiest intraday reading since Jan. 4.

Investors were able to set aside overnight losses tied to the aforementioned analyst downgrades of brokerage firms and jitters over losses in European shares when the monthly retail sales report came out above expectations. Although the headline figure came out near the forecast at 0.2%, the ex-autos component was at 0.5%, which was well above the median projection of 0.2%. In essence, it allowed the market a little breathing room early on as traders then sorted through various Federal Reserve speakers, earnings news, crude oil gyrations and merger/acquisition news.

It was another day in which small caps outperformed large-cap index products, which is a positive signal for bulls, who might be wondering whether or not equities can extend the rally off the March lows. However, despite the small-cap edge on large caps of late, it should also be noted that volume has been anemic. Instead of the old adage “sell in May and go away,” perhaps investors just went away and didn’t bother with the selling part.

Stock market investors had to navigate through some uncertain water today, as a dizzying array of Federal Reserve speakers were out providing their perspective on monetary policy moves and the state of the economy. It’s never easy to fully decipher Federal Reserve Chairman Ben Bernanke’s state of mind, much less . . .

Small-cap stocks are treading shallowly in the red midday, while the other major indices remain deeper in the red after Fed Chairman Bernanke said that markets are “far from normal,” oil prices hit record levels, major brokerage houses on the Street were downgraded and housing prices saw the steepest decline in 26 years.
 
At 1:19 p.m. ET, the Russell 2000 (NYSE:IWM) edged down 1.45, or 0.2%, at 731.78, while the Dow had skidded 84.27, 0.65%, at 12,792.04.

Federal Reserve Chairman Ben Bernanke spoke earlier this morning about liquidity issues in the financial markets. He said that the liquidity measures taken by the Fed to ease the credit crisis have helped, but that the markets are still “far from normal.” Also slated to speak this afternoon on the state of the economy are Federal Reserve San Francisco President Janet Yellen, Kansas City Fed President Thomas Hoenig and Dallas Fed President Richard Fisher.

“I believe that the current credit problems will take some time to resolve. Therefore, monetary policy will remain loose for much longer than many are anticipating,” said Doug Roberts, chief investment strategist for ChannelCapitalResearch.com, an independent research firm focusing on investment strategies using the Federal Reserve's impact on the stock prices. “You still have negative interest rates. Eventually as fear abates and as oil prices stabilize, small caps are going to start to rally because of the liquidity infused into the system. You’re even starting to see small caps at least in parity with large caps this year.”

Today’s pullback comes on the heels of Monday’s robust 1% advance. Oil reversed course nearing $127 a barrel intra-session on concerns that Iran may cut crude oil production. Gold slumped $16.60 per ounce to $868, as the greenback gained ground against the euro and the yen.

In other bleak economic news, the National Association of Realtors reported this morning that single-family home prices declined 7.7% in the first quarter, . . .

Small-cap stocks edged slightly lower, pulled down by profit-taking from traders who caught the rally Monday, by analyst downgrades for several brokerage firms and by ongoing jitters over crimped consumer spending. However, better-than-forecast retail sales data generated some buying interest this morning. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was down 2.01, or 0.27%, at 731.23.

The retail sales report sported a headline figure at minus 0.2%, which was in line with the forecast, but the ex-autos figure was up 0.5%, which was well above the consensus of 0.2%. The surprisingly stout sales figure sparked a reversal in overnight selling in stocks, pushing stock index futures and index basket products into the green ahead of the regular opening.

The market has seen a run of late where economic data surprises on the upside, but many in the economic community remain unconvinced that a recovery in equities or the recent above-forecast data means that the economy is out of the woods. “Equity prices in the United States, Europe, Japan and India show a noticeable recovery from this tumultuous period, while stock prices indexes in China, Brazil and Russia have also posted gains from their recent lows. We remain skeptical because the worst of the weakness in U.S. business activity is not here yet,” Asha Bangalore, economist with Northern Trust, said in an email.

The market could continue to bask in the glow today of the Hewlett-Packard (NYSE:HPQ) purchase of Electronic Data Systems (NYSE:EDS) for $12.6 billion, which will heighten the anticipation of additional merger and acquisition activity. If there is M&A activity in large caps, certainly there are deals to be done for small-cap companies as well.

Coming into today’s session, the market was on the defensive in overnight trading on a dip in European shares following a jump in U.K. inflation data and write-downs from a large French bank. In addition, an Oppenheimer analyst downgraded . . .

Small-cap stocks took flight Monday, with the Russell 2000 (NYSE:IWM) climbing to the highest daily close since Jan. 3, as investors shifted out of a range of other assets to pour money into equities. In addition, the rally likely triggered a wave of buy-stop orders from shorts that were unwilling to take a stand as the market once again approached fresh move highs. The Russell finished out Monday’s action up 13.18, or 1.83%, at 733.23.

The market appeared to embrace overnight gains in overseas equities, especially a rise in the largest European bank, HSBC, which was seen as a sign that the credit crunch worries are subsiding. On the U.S. side of things, Bank of America (NYSE:BAC) was up over 2.2%, but Citigroup (NYSE:C) shares struggled to hold ground. In addition, there was a renewed gush of merger giddiness on reports that Electronic Data Systems (NYSE:EDS) was a takeover target for Hewlett-Packard Co. (NYSE:HPQ). EDS was up nearly 28% before an afternoon trading halt, while HPQ was off about 5%.

Small-cap issues clearly paced the way on Monday’s rally, a move that was foreshadowed Friday when small caps eked out a minor gain even though large-cap indices lagged in the red. In recent years, small caps have tended to lead the way on rally moves, especially during the bull market run from 2002 to 2007.

The dollar jumped against the yen, but lost ground versus the euro. In all, the currency market action Monday appeared to be a net positive for equities, with some traders explaining away the lost ground against euro as a result of carry trades into high yielding FX markets.

Stock market investors also appeared to breathe a sigh of relief that crude oil prices were tame to start the week, with crude oil down about $2 a barrel from a fresh morning record peak. Given a large mass of economic data still to come this week, it will be interesting to see if equities can look past the crimped consumer purchasing power stoked by record-high energy prices.

Speaking of the data smorgasbord, the first big number of the week comes out Tuesday morning in the form of retail sales. In addition, Federal Reserve Chairman Ben Bernanke will speak on liquidity measures before the opening. With more . . .

Over the last decade or so, large PC makers and Western IT giants have invested heavily in the Middle Kingdom, helping China become a major center of computer manufacturing. But the nation's success in the hardware arena has yet to trickle into the software side of the business. That is destined to change.

China's software and technology services industry revenues grew to nearly $14 billion in 2007, an almost 25% increase over the previous year, according to the Ministry of Information Industry. And the Chinese government and domestic software players are committed to gaining a foothold in global markets.

While no homegrown firms currently poses a real threat to the United States’ and India's dominance in software and tech services, one little-known Chinese technology outfit can’t be ignored.

Meet VanceInfo Technologies Inc. (NYSE:VIT), one of China's leading offshore software development and information technology services companies. The firm, which was incorporated in April 2004 and went public in U.S. markets in December 2007, develops software products and provides a broad range of services for software systems, including research and development, application development and maintenance, enterprise solutions, quality control, and globalization and localization. VanceInfo primarily serves corporations based in China, Japan, the United States and Europe, focusing on high-growth industries such as technology, manufacturing, financial services, telecommunications, retail and distribution. Its clients include Microsoft Corporation (Nasdaq:MSFT), IBM Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Citibank Inc. (NYSE:C) and Motorola, Inc. (NYSE:MOT).

The company has grown its business through acquisitions. In September 2006, it snapped up Beijing Prosoft Software Technology Co., Ltd., followed by the IT services arm of Beijing SunBridges Technologies Development Co., Ltd. in December 2006. In March 2007, it bought out Beijing Innovation Technology Co., Ltd., an IT service provider specializing in R&D services. In May of last year, it acquired a 75% stake in Shanghai Solutions Software Co., Ltd. and purchased an additional 48.99% of the equity interest of Worksoft Japan Inc. Finally, last July, it acquired Beijing Chosen Technology Co., Ltd., a firm that provides various services similar to VanceInfo's.

On March 10, Huawei Technologies, a leading Chinese telecom firm that reviews and ranks its vendors, gave VanceInfo its highest rating for R&D services vendors, a testament to the acceptance rate, timely delivery and management stability of VanceInfo's projects. As the top-ranked company, VanceInfo will . . .

Pericom Semiconductor Corp. (Nasdaq: PSEM)
San Jose, CA
http://www.pericom.com

52-week low / high: $9.42/$19.50
Shares Outstanding: 25.92 million
Market Capitalization: $405.39 million

Successfully sousing itself in the semiconductor business has been a snap for Pericom Semiconductor Corp. (Nasdaq: PSEM).

The small cap makes integrated circuits and frequency control products that are used in everything from digital video for PCs to mobile devices that include cellular, GPS, digital media players, servers and PCs. It is the only manufacturer that addresses the computer expansion card market application need with multiple product functions.

The key to this company, however, is the strength found in its end market and customers. Pericom targets high-growth markets, serving communications, computer and consumer markets. Its top five end customers include Cisco Systems, Inc. (Nasdaq: CSCO), Dell Inc. (Nasdaq: DELL), Hewlett-Packard Company (NYSE: HPQ), Samsung and Garmin Ltd. (Nasdaq: GRMN).

The market for which Pericom sells into appears robust. Texas Instruments Incorporated (NYSE: TXN) and LG Electronics recently disclosed reports evidencing strength within the handset market. Laptop sales have been strong at HP and Dell. Additionally, if notebooks sales take off, that could also create sales growth opportunities for Pericom.

Shutterfly, Inc. (Nasdaq: SFLY) shares are falling after its rival Snapfish, owned by Hewlett-Packard Co. (NYSE: HPQ), began offering 4x6-inch photo prints at $0.09 a piece. Shutterfly, an Internet-based photo publishing provider, charges $0.12 per print.

Snapfish announced its new pricing model on Dec. 26, saying in a press release that the new price options provide “more than 50% savings compared to those of other photo-sharing sites.”

In heavier than usual volume, SFLY shares are plunging 18.07%, or $4.64, at $21.06. Over the last 52 weeks, shares have ranged from $13.20 to $37.

In the late 1990s, the tech world scoffed at the notion that corporate America would ever accept the concept of paying to download software from the Internet. But today, a growing number of small and medium-sized businesses are using on-demand software, or software-as-a-service (SaaS), for convenience and as an effective way to trim IT costs.

Market researcher IDC predicts that SaaS, which currently accounts for less than 2% of the global software market, will grow 25% annually and become a $14.5 billion industry by 2011. The popularity of on-demand software is growing so fast, in fact, that it is beginning to transform the business software industry. The rise of the SaaS delivery model has software giants Microsoft Corporation (Nasdaq: MSFT), Oracle Corporation (Nasdaq: ORCL) and SAP AG (NYSE: SAP) a little nervous; all are plowing billions into efforts to respond to the emerging SaaS threat.

The emergence of the on-demand software trend reflects companies' growing desire for less cumbersome and more economical means of using information technology (particularly, Web-based systems) to their advantage. For example, a new generation of Tech-savvy workers and global talent shortfalls have changed the face of human resources, which has become a hot segment for on-demand software specialists at a time when even a tiny company may have a tangled mess of disjointed IT.

San Francisco, Calif.-based Taleo Corporation (Nasdaq: TLEO) is a developer of on-demand software that helps companies manage their human resources operations. HR is an area that is often challenging for smaller companies with less manpower dedicated to the department and inefficient ad hoc systems — often based on Excel spreadsheets and emails. Taleo software, which is easy to install, manage and integrate with existing software, helps growing businesses bring their human-resources functions up to snuff by simplifying recruitment, screening and tracking chores. The company sells its software directly to customers and through HR outsourcers with which it has established partnerships.

Since the Chinese government relaxed restrictions and allowed foreign financial institutions to enter China's retail banking market in December 2006, a world of opportunities have opened up for banks, both international and domestic.

China's increasingly liberalized financial services sector has attracted investment from global powerhouses such as Bank of America Corporation (NYSE: BOA), Citigroup Inc. (NYSE: C), HSBC Holdings (NYSE: HBC), Royal Bank of Scotland Group (NYSE: RBS) and Standard Chartered PLC (LON: STAN) — some have set up shop under their own banners, while others have purchased stakes in successful Chinese banks.

Stepped up competition from international banking rivals in a fast-growing market has left Chinese banks with no choice but to upgrade. Home-grown banks are now expanding their financial offerings and beefing up their IT infrastructure to keep up with highly-experienced foreign competitors vying for a piece of the more than $4 trillion in deposits held in China (and the growing demand for bank accounts, credit cards, mortgages and wealth management services among more affluent Chinese consumers).

One company that sees its future fortunes in the Chinese banking industry is Yucheng Technologies Limited (Nasdaq: YTEC), a leading information technology and outsourcing solutions provider. Yucheng provides services including IT consulting, system integration, financial software development, telephone and Internet banking, call center installation and support and risk management solutions to some of the largest banks, insurance companies and securities firms in China.

The Russell 2000 (NYSE: IWM) fell for the third consecutive time today following news of a decline in industrial production and renewed fears of a credit squeeze. The Russell 2000 lost 2.10 points, or 0.27%, to 769.50. The Dow Jones Industrial Average (INDU) added 66.74 points, or 0.51%, to 13,176.79.

On a year-to-date basis, the Russell 2000 has retreated 2.28%, while the Dow has risen 5.63% and the S&P 500 has added 2.97%.

Industrial production unexpectedly fell 0.5% in October, the U.S. Federal Reserve reported before the opening. That’s the biggest decline since January, defying economists’ projections of a rise of 0.1%. Industrial production added 0.2% in September.

The decline was due primarily to a 1.6% drop in utilities, as well as smaller declines in mines, construction and consumer goods. Compared with October 2006, industrial production has increased 1.8%.

Capacity utilization for the total industry declined to 81.7% from 82.2% in September.

The data tell us that the U.S. economy is probably headed for a slowdown, as industrial production is about 20% of gross domestic product. On the plus side, factories have room to ramp up production without triggering inflation.

The Russell 2000 (NYSE: IWM) is in the red as positive news from the tech sector lifts the Dow Jones Industrial Average (INDU) but fails to impress small-cap investors. At 1:52 p.m. ET, the small-cap index had shed 2.42 points, or 0.31%, to 769.18. The Dow Jones was up 63.89 points, or 0.49%, to 13,173.94.

The mood in pre-market trading was bullish following news that analysts have raised their recommendations for Hewlett-Packard Co. (Nasdaq: HPQ), the world’s largest maker of personal computers, and energy giant Chevron Corp. (NYSE: CVX).

Also contributing good news was tech sector heavyweight Cisco Systems Inc. (Nasdaq: CSCO), a maker of networking equipment, which announced that it has authorized additional stock repurchases valued at as much as $10 billion, raising the total amount to $62 billion.

Stocks started in positive territory but small caps tumbled down soon afterward, while the Dow held on for longer before trimming some of its gains and eventually also slipping into the red.

The bears’ return was facilitated by news that U.S. industrial production surprisingly fell 0.5% in October, the most since January, according to data released by the U.S. Federal Reserve before the opening. Industrial production added 0.2% in September.

The data confirm economists’ projections that U.S. economic growth is shifting into lower gear. Industrial production is about 20% of gross domestic product.

But the bulls managed to regain their footing and the major indices, with the exception of the Russell 2000, started climbing and moved into the green at about 11 a.m. ET.

The Russell 2000 (NYSE: IWM) is deep in negative territory while the Dow Jones Industrial Average (INDU) is marginally lower following news of a surprise drop in industrial production.

At 10:41 a.m. ET, the small-cap index was down 9.68 points, or 1.25%, to 761.92. The Dow was down 16.02 points, or 0.12%, to 13,094.03.

Industrial production surprisingly fell 0.5% in October, the U.S. Federal Reserve reported minutes before the opening. That’s the biggest decline since January. Economists were expecting a rise of 0.1% after industrial production added 0.2% in September.

The decline was due primarily to a 1.6% drop in utilities, while mines fell 0.6% and construction slipped 0.4%.

Capacity utilization for the total industry declined to 81.7% from 82.2% in September.

The numbers tell us that the U.S. economy is probably headed for a slowdown, as industrial production is about 20% of gross domestic product. But the on the other hand, factories have plenty of room to ramp up production without triggering inflation.

In corporate news, there was a bullish mood before the start of trading on news that analysts have raised their recommendations on computer hardware maker Hewlett-Packard Co. (Nasdaq: HPQ) and energy giant Chevron Corp. (NYSE: CVX).

Also contributing good news was Cisco Systems Inc. (Nasdaq: CSCO), after the Internet communications company authorized additional stock repurchases valued at as much as $10 billion, raising the total amount to $62 billion.

Stocks started in positive territory but small caps tumbled down soon afterward, while the Dow held on for longer before trimming some of its gains and eventually also slipping into the red.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will most likely open in positive territory, recovering from two days of losses.

Big name players are helping create a bullish mood this morning after news that analysts have raised their recommendations on computer hardware maker Hewlett-Packard Co. (Nasdaq: HPQ) and energy giant Chevron Corp. (NYSE: CVX).

Also contributing is Cisco Systems Inc. (Nasdaq: CSCO), after the internet communications company authorized additional stock repurchases valued at as much as $10 billion, raising the total amount to $62 billion.

In economic news, the U.S. Federal Reserve is scheduled to release data on industrial production in October minutes before the start of trading. Economists are expecting to see a small rise.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Canadian Solar Inc. (CSIQ), up 13% on news that is has signed a new contract to deliver solar power station projects in Spain.
• American Railcar Industries Inc. (ARII), up 11% on news billionaire Carl Icahn bought more shares.
• China Techfaith Wireless Communication Technology Ltd. (CNTF), up 7%.

Biggest percentage losers:

• Acacia Research-Acacia Technologies (ACTG), down 30% on news of a negative ruling in a patent infringement trial with Microsoft Corp. (MSFT).
• Zygo Corp. (ZIGO) down 7%.
• Salix Pharmaceuticals Ltd. (SLXP) down 6%.

The original Rainmaker was a 1950s play by N. Richard Nash, in which a charming rogue promises to bring rain to a drought-stricken farmer, despite the doubts of the farmer’s daughter. She ends up falling in love with and developing faith in the man, if not his rainmaking abilities.

Rainmaker Systems, Inc. (Nasdaq: RMKR) is a Campbell, Calif.-based company that promises to help clients turn prospective buyers into paying customers through online sales and marketing services. It’s a great trick if you can do it, and Rainmaker has had good momentum of late.

At least, until the close of the market on Thursday, Nov.1, when the small cap announced third-quarter earnings. Although results were in line with expectations, company executives warned that one line of business—its short-term lead generation business—was slowing in the fourth quarter, and the doubts began.

At the end of Rainmaker’s earnings conference call, Craig-Hallum analyst Jeff Van Rhee told SmallCapInvestor.com, “This guidance isn’t going to make anybody happy.” He was right. On Friday, the stock dropped almost 19% to $6.91 from a Thursday close of $8.52.

Nevertheless, most analysts—Van Rhee included—see this as a buying opportunity. They’re willing to forgive what they’re betting is a short-term problem and are looking forward to a strong 2008. Van Rhee maintains his “buy” rating with a $12 target. Because of an acquisition spree and expansion program this year, he says, “This was never a 2007 story. This is a 2008 story.”

Rainmaker uses data analysis, online and direct marketing and professional telesales to help its customers outsource their marketing and sales efforts. Unlike much larger competitor Salesforce.com, the small cap isn’t focused just on customer relationship management (CRM). It’s trying to provide “closed loop” services, from lead generation to post-sale servicing to creating and maintaining long-term sales contracts with customers.

NetScout Systems, Inc. (Nasdaq: NTCT), a provider of advanced network and application performance management, said today that it is working with Hewlett-Packard Co. (NYSE: HPQ)  to develop a “tight integration” with its technologies and HP’s Network Node Manager i-series.

NetScout said it will integrate its nGenius product with HP’s NNM i-series with the goal of improving operator efficiency and reducing time-consuming and costly escalation through troubleshooting.

The combined technologies are purported to offer advanced, application-aware performance alarming, analysis and troubleshooting for IT support for both enterprise and service provider networks. NetScout said the combination will also give early warnings for languishing application performance as well as an integrated work flow for problem detection and root cause analysis.

“[This partnership is] very meaningful for NetScout and will assist in recognition of the company,” said Brean Murray & Carret analyst Peter Jacobson. “However, it will take time to gain traction from the partnership and for significant revenues associated with alliance to ramp up.”
 
Jacobson says NetScout’s partnership with HP, which NetScout has had for a couple years now, is also very favorable for building relations with other major technology goliaths.

The Russell 2000 (NYSE: IWM) was the only major U.S. index not to partake in the modest rally that followed news of major corporate deals. The small-cap index fell 0.82 points, or 0.10%, to 835.62. The Dow Jones Industrial Average (INDU) added 92.34 points, or 0.67%, to 13,943.42.

With a void of economic news, the bullish sentiment on Wall Street was primarily due to the latest mergers wave.

The Russell 2000 began the day with a healthy rise and briefly touched a level of 842 around 1 p.m. ET before slipping into negative territory shortly before the close.

Houston-based offshore driller GlobalSantaFe Corp. (NYSE: GSF) and city rival Transocean Inc. (NYSE: RIG) agreed to a merger of equals to create a $38 billion combined company. The deal is scheduled to close by the end of 2007.

Neoware, Inc. (Nasdaq: NWRE), a maker of thin client software, reported Hewlett-Packard Co. (NYSE: HPQ) is purchasing the company for $16.25 per share.

In a statement, Hewlett-Packard said the acquisition is intented to speed business growth of its Linux software and client virtualization.

“Our objective is to become the preferred brand of thin clients and software for virtualized client computing,” Kevin Frost, HP's VP for business desktops and personal systems group, said in a statement. “Thin clients are an important component in today’s overall computing strategy and play a critical role in HP’s virtualization strategy. Acquiring Neoware confirms our commitment to thin client computing and client virtualization solutions.” 

Toronto-based Kaboose, Inc. (TSX: KAB) is North America's largest independent online media company in the kids-and-family market — a sector dominated by giants such as Walt Disney Co. (NYSE: DIS), Time Warner Inc.'s (NYSE: TWX) AOL unit and Viacom Inc.’s (NYSE: VIA) Nickelodeon. Solid planning, creative financing, strategic marketing, and sound partnerships have this small-cap standing strong in the face of stiff competition from larger competitors with well-oiled marketing machines.

Founded in 1999, right before the dot-com bust, Kaboose plowed full steam ahead, aggressively snapping up kid-oriented websites. After a round of acquisitions, the small media company conceded it would never win the battle for children's attention on the Internet, so it shifted gears and targeted their moms. Today, the company runs a string of content-related sites that focus on mothers and young families. Visitors to Kaboose's sites can do everything from staying informed of the latest trends and reading product and service reviews to planning birthday parties and family vacations to creating online photo scrapbooks.

With a Web portfolio including popular sites like BabyZone, ParentZone, Birthday in a Box, Two Peas in a Bucket and the recently acquired image-sharing service Bubbleshare, Kaboose's 120,000 pages of content attract 12 million unique visitors a month and its family of sites have more than 2 million registered users (return visitors who can be tracked and cross-promoted)—a fact that has brought advertisers knocking.

"Kaboose is one of only a handful of Canadian companies that is benefiting from the significant shift in advertising spending from traditional media to online media," Ron Shuttleworth of Jennings Capital Inc., said in a recent report.

"As the company scales and solidifies its position as a pre-eminent destination for families, we expect that Kaboose should capture more share of advertising budgets and higher rates," he wrote.

Last year, the advertising dollars poured in: Kaboose revenues swelled 200% to $11.7 million and in the third quarter of last year, the company recorded its first ever profit, $500,000 (a $1-million turnaround from the same period in 2005). All in all, sales have grown more than 1,000% since 2003. And the company has built an impressive list of business partners, including the likes of McDonald's Corp. (NYSE: MCD), Target Corporation (NYSE: TGT), Hewlett-Packard Company (NYSE: HPQ), DaimlerChrysler AG's (NYSE: DCX) Mercedes-Benz subsidiary, Mattel, Inc. (NYSE: MAT) and M.J. Heinz Company (NYSE: HNZ).

“Enterprise information technology” is one of those vague, but very widespread IT buzzphrases used to describe a wide range of software and hardware products, ranging from those that help companies manage large volumes of data to those that help companies manage their own technology.

The one theme that connects all these technologies is that the typical company – much like the typical American household – has growing amounts of “stuff” under its roof. Whether it be computer servers, layers of software being added haphazardly to maintain the servers, or volumes of consumer data that rest on these servers, all of this stuff needs to be organized in a somewhat orderly way so that it can be used to maximum efficiency, and, in the case of consumer data, stored in such a way that it may be easily called up on demand.

A couple of trends are driving this demand for technologies to better manage the enterprise and the data that rest within. The first, quite simply, is growth. As companies get bigger, they accumulate more computers to run their operations, and more consumer data to store.

Perhaps a more significant factor than sheer growth, however, is the haphazard way in which companies have typically grown their back offices: adding servers one, or a few at a time as required, and then patching them together with software and middleware, rarely taking the time to take a systematic look to determine how it might all be put together more effectively.

The small-cap Russell 2000 index joined the other major U.S. indices in losing ground as investors consolidated their gains in anticipation of Wednesday’s meeting of the Federal Reserve.  Among specific small-cap stocks, Cutera, Inc. (Nasdaq: CUTR) said its net income missed expectations, while Playboy Enterprises Inc. (NYSE: PLA) reported a strong first quarter.

The Russell 2000 lost 0.97 points, or 0.12 percent, to 830.90.  The Dow Jones Industrial Average snapped its five-day winning streak, losing 3.90 points, or 0.03 percent, to 13,309.07.