Tag - NYSE:WMT

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

During its five years of existence, this company's stock has risen 148 percent, while the iShares Dow Jones U.S. Consumer Goods Sector Index Fund (IYK) - of which it is a member - has risen just 6.3 percent.

That outperformance, from a typically slow growth sector, is worth taking a closer look at

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.

Small-cap stocks "...tend not to perform well in a rising-rate environment."

These were Tim Hayes' comments in the Wall Street Journal earlier this year. Hayes is chief investment strategist at Ned Davis Research, and was discussing the outperformance of small cap stocks over the last decade.

He explained how rising interest rates usually hurt small-caps more than large-caps because when interest rates go up, so does the cost of borrowing. With less cash on hand, smaller companies typically don’t have the same financing flexibility that larger companies do.

There is no doubt that consumers hurt by the recession want to stretch their dollars. And when it comes to investing in small-cap companies, being a frugal shopper is even more important.

That’s because it’s possible to pay too much for even the best growth stock. In order to make the most of your investment, you need to buy at bargain basement prices.

Finding surplus value is what shopping is all about - regardless of whether you're shopping for shoes, stocks, or really anything imaginable.

With seasonal apples virtually everywhere here in Vermont it's almost impossible not to think about the importance of fresh fruit in our diets. Of course, as an independent investor I spend as much time considering potential ways to profit from the fresh food movement as I do putting together recipes that feature these tasty treats.

I've recently turned my attention toward consumer staples companies that may get a boost from the fresh food movement.

Cruise down the supermarket produce aisles and check out the fruit prices. Whether you're at a Walmart (NYSE: WMT), Safeway (NYSE: SWY) or Kroger (NYSE: KR), value shoppers are likely to notice one thing - bananas are the cheapest fruit on the shelves. They are ridiculously cheap.

The phrase earnings quality is a bit of a misnomer. How is one dollar of earnings any better than another dollar? And isn’t quality subjective anyway? In last Wednesday’s issue of Small Cap Investor Daily, Finding Diamonds in the Rough, I said that in a future issue I would review two fundamental analysis metrics, earnings quality and cash flow. Today I’m digging in to the meaning of earnings quality so that you can put this fundamental analysis metric to work uncovering small-cap gems to add to your portfolio.

When I talk about earnings, I’m often referring to earnings per share (EPS), which is net income divided by the number of shares outstanding. Sometimes net income is referred to simply as profit, or even just as earnings.Simply put, earnings are a company’s net profits from operations. There are three sub-totaled line items on an income statement that you should look at:

1         Net income from operations (operating net income): This is the calculated profits including all revenues, minus direct costs and expenses related specifically to the core business. It usually excludes nonrecurring, or noncore sources of income, but history has demonstrated that some companies use a loose interpretation. More on that in a minute.

2         Net pre-tax income: This adds other income and subtracts other expenses from operating income, but it does not include the liability for income taxes. Typically, these adjustments include interest income and expense, currency exchange profit or loss, capital gains and losses, payments or receipts in settled or finalized lawsuits, and other nonrecurring, non-core transactions.

3         Net income: This takes the net pre-tax income and deducts the liability for federal income taxes (state and local taxes are already deducted in the expense section of the report). The tax hit can be a big number. As of 2009, corporations can be required to pay up to 38 percent of their net income in federal taxes.

Depending on the company you’re looking at, certain income items may be worth special consideration. For example, in last Friday’s issue of Small Cap Investor Daily, The Gig is up – This Stock’s a Winner, I reviewed Lancaster Colony (Nasdaq: LANC). Lancaster has a history of receiving cash distributions under U.S. anti-dumping law. This income is accounted for as ‘other income’, and not included as part of operating income.

So when it came time to evaluate Lancaster’s revenue and earnings growth I highlighted the fact that excluding these distributions gave a better picture of Lancaster’s true business growth. And to show how important the difference can be, I found that Lancaster actually increased net margins to 12.7% over the last year. If I didn’t break out the ‘other income’ cash distributions, it looked like the profit margin was just 7%.

As the Chief Investment Strategist of SmallCapInvestor.com, Ian Wyatt has guided thousands of individuals in their quest to capture small-cap investing success. With the release of his new book, The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks, Wyatt continues his dedication to help investors find great companies at bargain prices before Wall Street or Main Street catch on.

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Small-cap stocks, those publicly traded companies with market capitalizations less than $2 billion, can yield significant gains that are impossible to find when investing in larger stocks. The best performing investments of all-time started out as small-cap stocks, including Cisco (Nasdaq: CSCO) +94,983%, Dell (Nasdaq: DELL) +61,025%, Microsoft (Nasdaq: MSFT) +50,209%, and Wal-Mart (NYSE: WMT) +79,016%.

Following an economic recession, small-cap stocks have proven to consistently perform better than large-cap stocks. A recent study from Merrill Lynch found that in the 18 bear markets since the 1930's, small caps posted an average gain of 41.4% in the 12 months after the end of the decline, compared with an average gain of 32.4% for large caps. This impressive performance makes small-cap stocks among the most attractive investments after a financial downturn.

Unfortunately, information about how to successfully invest in these smaller companies has been hard to find-until now.

Throughout The Small-Cap Investor, Wyatt clearly outlines his proven investment process and the systems that are involved - detailing eight straightforward steps readers need to take to find, research and analyze small-cap stocks that could have big gains. Page by page, he takes the time to explain the essential criteria involved in picking the right stocks and timing buy/sell decisions. Topics include:

• Identifying growth trends and market sectors positioned for rapid growth in the years to come
• Secrets for finding undiscovered small caps before they are embraced by the financial media and institutional investors
• Understanding the fundamentals of a potential investment, including products, services and management's ability to run the business
  

By following Wyatt's eight-step process outlined in The Small-Cap Investor, you'll have the edge over other investors and be in a better position to profit from the exponential growth of the right small-cap companies. For more information on Wyatt's book visit SmallCapBook.com.

Ian Wyatt is the founder of Business Financial Publishing and author of the book "The Small-Cap Investor: Secrets to Winning Big with Small-Cap Stocks." You can learn more about his book at http://www.smallcapbook.com and follow him on Twitter at @IanWyatt.

Stocks extended their gains for a second day in a row with all major indices closing up, though below a one percent gain.

The Dow finished the session at 9,398, up 37 points; the Nasdaq closed today at 2,009, up 11 points; and the S&P 500 finished at 1,012, up 7 points.

The Russell 2000 index, a composite of the leading small-cap stocks, closed at 575, up 4 points.

Small-cap price movers were lead by Kodiak Oil (Amex:KOG), up 30%. Following KOG were Dot Hill Systems (Nasdaq:HILL), up 22%; Pacer International (Nasdaq:PACR), up 16%; BioSante Pharmaceuticals (Nasdaq:BPAX), up 16%; and ACADIA Pharmaceuticals (Nasdaq:ACAD), up 16%.

*****Last week's better-than-expected payroll data is being offset by new jobless claims today. 558,000 people filed new claims for unemployment benefits. That was more than the median estimate of 545,000.

The number of people collecting unemployment fell by 141,000 and that lowers the unemployment rate. That sounds good, but I don't think it is. Most likely, benefits for these 141,000 have run out. So what little money they had coming in is now gone and they've just stopped asking. 

*****The most direct effect of massive unemployment is less spending and less revenues for America's retailers. Wal-Mart (NYSE:WMT) beat earnings but missed on revenue. That basically means Wal-Mart fired a bunch of people to cut costs, then those people spent less at the store.

Overall, retail sales were down 1% in July after a 0.8% rise in June. With the unemployment rate still expected to rise to over 10%, and likely to stay at high levels for a few years, there's not a lot of upside for the retail sector.

*****SmallCapInvestor PRO members are just a few pennies away from knocking down another 100% winner. This time, it's a Chinese organic fertilizer company. The stock has been on a tear for the last month. And despite the fact that it's nearly doubled, the forward P/E is 17 and the PEG ratio is .45. In other words, there are more gains to come.

I have a new special situations report with detailed research on my 100% China winner plus two other high flying Chinese stocks. Click here to get this report now.

And speaking of SmallCapInvestor, we're open for voting for the t-shirt slogan for my first book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks. There are some excellent slogan ideas, and if you'd like to help pick a winner, you can cast your vote for the best slogan at the SmallCapInvestor Facebook page.

Click here to cast your vote now.

The winner gets a full year subscription to all of my advisory services, so if your slogan is in the running, get friends and family to cast their votes so you can take home the top prize.

I'd like to thank SCI Daily readers for helping with the marketing of my first book. You're helping make it a success and I really appreciate it.

*****I probably shouldn't do this, but TradeMaster Daily Stock Alerts technical analyst Jason Cimpl is alerting his readers to breakouts in the biotech sector. A couple names he's watching are Orexigen (Nasdaq:OREX) and Jazz Pharmaceuticals (Nasdaq:JAZZ).

Jason thinks Jazz is good for a 21% move from current levels, so if you're looking for a short-term trade from TradeMaster, this might be a good one.

Be on the look-out for tomorrow's SCI Daily as Jason will once again provide readers with video charting of the week's movements and most importantly, his outlook for how to trade for profits in the coming week. Look for this in tomorrow's issue of SCI Daily.

*****Investors are ignoring short-term weakness in oil demand and focusing on the long-term fundamentals. Oil prices are back over $71 a barrel today despite the highest reserve levels since 1991.

Barclay's expects oil prices to average $76 a barrel in the third quarter. And don't forget, hurricane season is looming. Oil stocks should be bought on dips.

Ian Wyatt
Editor
SCI Daily

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Best Regards,

Ian Wyatt
Editor
SCI Daily

Stocks were poised to open lower today and but for a brief few minutes in early trade they generally lived up to the prediction. The Dow shaved 34 points to close at 8,439. The S&P 500 sank 1.5 points to 919, while the Nasdaq closed up 9 points to end the day at 1,838.

Stocks in the Russell 2000 Index, a composite of the 2,000 largest small-cap stocks, bucked the downward trend for the index to close at 513, up 0.78%.

While there was good news about a very modest increase in spending rates, investors seemed most concerned about the boost to the U.S. savings rate to 6.9 percent, up from 5.6 percent in April and significantly up from rates below 1 percent for the period 2005 through 2007. While this could bode well for the longer term economic health of the U.S. economy many analysts see it merely as a side effect to consumer concerns about layoffs, cutbacks, and furloughs.

The increase in the savings rate has come at the expense of consumer spending, which accounts for roughly 70 percent of the U.S. economy. Indeed, many retailers have been battered over the past several quarters as Americans concerned they may receive a pink slip any day shut their wallets to defer spending and switch to lower cost brands for necessities.

Among the stand-outs in retailing are Wal-Mart (NYSE:WMT), Target (NYSE:TGT), and Costco (NYSE:COST). Despite more consumers turning to discount retailers, both WMT and COST have seen year to date share price declines. TGT shares are up nearly 20% for the year.

Despite the modest increase in household spending, retailers are girding for continued earnings pressures as American families prepare for unemployment to reach 10% later this year, up from the current 9.4%.

Leading small-cap gainers today was Zion Oil & Gas (AMEX:ZN) up 76%. Zion runs as a development stage oil and gas exploration firm. Based in Dallas, Texas, the firm holds exploration licenses for onshore development in Israel.

Other small-cap leaders included Cardium Therapeutics (AMEX:CXM) up 48%; Schmitt Industries (Nasdaq:SMIT) up 45%; and Caraco Pharmaceutical Laboratories (AMEX:CPD) up 35%.

Decliners were lead by Design Within Reach (Nasdaq: DWRI), a San Francisco-based furniture store, down 41% after announcing that it expects to delist from the Nasdaq on July 16 with trading ceasing July 6. DWRI has had trouble keeping its share price above $1.00 (a key Nasdaq requirement) for most of 2009 and has indicated that it does not have the working capital to meet the Nasdaq's requirements for staying listed.

Besides DWRI, small-cap price decliners were lead by NewBridge Bancorp (Nasdaq:NBBC) down 37%; Cano Petroleum (AMEX:CFW) down 25%; and Cumulus Media (Nasdaq:CMLS), also down 25%.

Yesterday, the Fed scaled back two of its liquidity-providing programs and announced it would let a third one expire on July 1, 2009.  

Each program was designed to provide liquidity to securities dealers and money-market funds that couldn't raise funds in the capital markets. The Fed noted that none of the programs were used anywhere close to capacity. And the improving economy and loosening of credit markets has made the programs less necessary. 

Investors took this as good news because it suggests the economy and financial system is starting to stand on its own. It's also good news because it shows the Fed is willing to be somewhat proactive in shutting off liquidity.  

To me, this is more important. 

*****In one form or another, the U.S. government has made (read:created) something like $11 trillion available to fight this recession. (I'm not sure anyone knows the exact number.) The government has been widely praised for its response to the financial crisis. Its moves are credited with averting a more serious problem.  

But that's only half the job, and it's the easy half, at that. I expect many of you have seen how a toddler reacts when it's time to give up the pacifier. Kicking and screaming is an understatement. And that's exactly how it will happen when the Fed really starts taking away the liquidity pacifier for good.  

Alan Greenspan never had the stones to give the U.S. economy the tough love it needed. And Wall Street became a spoiled bunch of delinquents.  

Will Bernanke have what it takes to guide the U.S. economy from dependent child to responsible adult? We'll see. And we better hope so, because I suspect the stakes are even higher this time around…  

*****While the U.S. is creating debt to support its economy, China is using its currency surplus to secure raw materials. I mentioned yesterday that China's state-run oil company Sinopec (NYSE:SNP) is trying to acquire an oil exploration company for $7.2 billion. And it wasn't that long ago that China tried to take a $19 billion stake in mining giant Rio Tinto (NYSE:RTP).  

When you're an investor, you have to be worried about opportunity cost. That's the cost of profits that you could have made, if your investment capital wasn't tied up in under-performing or illiquid assets.  

Right now, and probably into the future, the U.S. will be suffering opportunity cost as so much of our resources are tied up in simply supporting our economy. 

*****Case in point: Iraq. Iraq is one the verge of opening the deal-making process for international oil companies to upgrade Iraq's oil fields. This promises to be a very convoluted process - the Kurds and Parliament want input and the current oil minister appears ready to bypass them both.  

All Iraqis realize how important oil, and oil revenue, is to their future, and they're all fighting to get a piece of the action and avoid the exploitive situation that occurred before Saddam Hussein kicked Big Oil out of Iraq. 

For this reason, the proposed development contracts are not guaranteed. There is the risk that a subsequent Iraq government could nullify them and there would be no recourse.  

The risks are high enough that Exxon-Mobil (NYSE:XOM) isn't even sure yet if it will enter the bidding process. But I'll bet you dollars to doughnuts that Sinopec's parent company, China National Petroleum & Chemical Corp. will be bidding.  
Now, obviously, the recession has nothing to do with Exxon's uncertainty. But for China's state-run oil companies, national interests are sometimes more important than profits. And that can be a good thing.

*****Now, here's Jason Cimpl's video analysis of this week's action and look ahead to next week. So far he's batting a thousand. You can view the video HERE or go directly to trademasterstocks.com/videoreport. 

 

The Russell 2000 was holding on to a gain 90 minutes into the session, but just barely. At 10:58 a.m. ET the index was up 1.60, or 0.38%, at 424.78. The day’s high of 429.32 was posted shortly after the opening, largely in response to bargain hunting after a stronger-than-expected Conference Board report on its January index of leading economic indicators.

Dull is the New Good

They say never sell a dull market. And it’s hard to imagine a duller day than Wednesday. The Dow Industrials added 3 points. The S&P 500 lost 2 points. The loss at the Nasdaq was measured in a fraction.

Of course, after Tuesday’s plunge, I think we can all agree that dull is good, dull is progress...

Small-cap stocks pushed higher Thursday, boosted by talk that the Obama stimulus plan and his measures to help banks could include a provision to suspend the “mark-to-market” accounting provision that many say hurts financial balance sheets. In addition, tech stocks and retailer shares showed surprising strength that allowed the market to look past sobering economic data on the employment and factory orders front. The tech-laden Nasdaq 100 Index rose 2.4% on the day, while the Russell 2000 (NYSE:IWM) closed up 6.60, or 1.47%, at 455.08 and is now down 8.8% for the year. Meanwhile, the Dow is off 8.1% for the 2009, while the S&P 500 is down 6.3%.

Critics of the mark-to-market accounting procedure say that it forces firms to write-down losses on unrealized assets, which in turn bloodies the bottom line prematurely. However, proponents of the accounting process say it helps avert disasters like the Enron debacle. President Obama is slated to hold a press conference Monday evening to rollout his stimulus plan to the world in an effort to build momentum to get the $800 billion package pushed through a divided political landscape.

It was encouraging to see the stock market grind out a positive session today, especially in the face of disheartening data on weekly unemployment claims and slumping factory orders. The claims report came in at 626,000, which was way above the projected figure and also at 26-year highs. What’s more, the number of Americans forced to file for continuing unemployment benefits rose to 4.78 million, the highest number in history. Having a record number of people on the unemployment rolls the day before the monthly Labor Department employment report seemed quite daunting this morning, but the market quickly embraced the accounting talk and looked past the data.

Also on the economic front, the factory orders report tumbled 3.9%, . . .

Small-cap stocks reversed morning losses and climbed into positive territory, sparked by talk that the “mark-to-market” accounting rules might be suspended to provide additional relief to banks and financial institutions to weather the current crisis. In addition, solid action for tech stocks and gains for retailers amid same-store sales reports provided further bullish fodder. At 12:10 p.m. ET, the Russell 2000 (NYSE:IWM) was up 9.15, or 2.04%, at 457.62.

Bank stocks were an early drag on the market, with Bank of America Corp. (NYSE:BAC) sinking to 25-year lows, but bank and other financial shares rallied off the morning lows as the accounting rule talk made the rounds. There is hope that next week’s announcement from the Obama Administration about the stimulus plan may include changes or suspension of the “mark-to-market” rules. The KBW Banking Index rallied about 6% off the early low and briefly traded in positive territory.

Outside of the recovery bounce in financials, the stock market also found support from tech shares, which were supposed to be an eyesore today following downgraded revenue projections from Internet enabler Cisco Systems Inc. (Nasdaq:CSCO). After trading lower in pre-market activity, Cisco moved into positive territory today, providing a spark for tech stocks in general. Also, semiconductor shares were on a roll into mid-session, also lifting tech shares.

Retail stocks also provided a surprising source of strength today, despite a bevy of mostly disappointing monthly sales reports. The standard-bearer for the upside was probably Wal-Mart Stores Inc. (NYSE:WMT) as the world’s largest retailer and discount provided topped the monthly same-store sales forecast, providing hope to investors that consumer spending might not be as awful as feared. Even though individual store results were spotty, the S&P Retail Index was up about . . .

Small-cap stocks pushed lower to start Thursday’s session, as the latest figures on weekly claims showed record large numbers of U.S. citizens are on unemployment insurance. In addition, earnings news and monthly retailer sales figures are sloppy as expected, adding to the bearish tone. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was down 4.93, or 1.10%, at 443.55. Although small caps remain above the January lows, the Dow today slipped to the lowest point since the Nov. 21 bottom was carved out.

The weekly claims report rose to a new cycle high, as a sobering number of Americans were forced to file for unemployment benefits last week. The headline figure on claims came out at 626,000, which was way ahead of the projection of 592,000. That figure marked the highest level on weekly claims since 1982. Even more sobering is that the number of people forced to remain on the unemployment rolls climbed to 4.78 million, which is the largest number on record. Although these figures won’t make it into Friday’s big monthly Labor Department jobs report for January, it’s still a troubling sign.

At the same time that the weekly claims report came out, the latest reading on productivity was released, and the number topped the forecast by quite a bit, with productivity coming in at 3.2%, well above the 1.4% projection. The factory orders report at 10:00 a.m. ET came in at minus 3.9% and included a hefty downward revision to last month’s report.

Coming into today’s action, stock markets in Europe and Asia were seeing a mild retreat, with European shares pulled down by losses for insurance companies and consumer products firms. Swiss Re, the world’s second-largest insurer saw double-digit losses in European trading and Warren Buffett invested about $2.6 billion in the firm. The Bank of England trimmed another 50 basis points off their benchmark interest rate, bringing rates down to 1%, the lowest level in more than 300 years for the bank. Meanwhile, the European Central Bank opted to leave their benchmark . . .

Small-cap stocks pushed higher in a relatively tame session, with morning pressure from concerns about sloppy sales at Wal-Mart countered by optimism for massive infrastructure spending projects in the months ahead. Perhaps the story lines simply balanced out each other, or perhaps the market was taking a little “breather” ahead of Friday’s big jobs report. The Russell 2000 (NYSE:IWM) closed up 4.91, or 0.99% at 502.01 and is now up 0.5% for the year; meanwhile the Dow is off 0.3% for 2009 and the S&P 500 is up 0.7%.

The day started off with a thud as the Wal-Mart worries ignited fears that if consumer spending is slack at discounters, then how bad might it be for higher-end fare? Wal-Mart Stores Inc. (NYSE:WMT) reported same-store sales were up 1.7% in December, which missed the forecast for a rise of 2.8%. WMT was a drag on large-cap index products throughout the day, and eventually lost more than 7%.

There actually was plenty of movement today in the retail arena, with most stores now coming out with monthly same-store results. However, for every Wal-Mart, Limited Brands Inc. (NYSE:LTD) and Abercrombie & Fitch Co. (NYSE:ANF), all of which fell on weak numbers, there was a Sears Holdings Corp. (Nasdaq:SHLD), which jumped 23%. If you owned stock in any retailers, chances are you experienced ...

Small-cap stocks hovered near steady levels into mid-session trading, up from the morning lows amid optimism over the fiscal stimulus plans that were put into greater detail today by President-elect Obama. The stimulus cheer helped offset gloom over sloppy retail sales from discount giant Wal-Mart, which put an early pall on the morning activity. At 12:23 p.m. ET, the Russell 2000 (NYSE:IWM) was up 0.27, or 0.05% at 497.36, outperforming the Dow and S&P 500.

Wal-Mart’s same-store sales were up in December, but short of expectations, which rekindled worries about consumer spending in the recession. Wal-Mart Stores Inc. (NYSE:WMT) was one of the few bright spots during 2008, but if discounters start to struggle, does that mean rising unemployment is forcing consumers to close their wallets altogether right now?

Speaking of unemployment, today’s weekly claims data served up a bullish surprise for the second consecutive week, with the headline figure coming in at 467,000, some 75,000 below the forecast. However, continuing claims were at 26-year highs, which took some of the bullish edge off the number. The market is still bracing for a potential ...

Small-cap stocks pushed lower this morning, pulled down by renewed worries about consumer spending after the world’s largest retailer posted disappointing December sales. In addition, tech stocks and commodities were on the defensive this morning following losses in overseas trading. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was down 3.82, or 0.77% at 493.28.

Wal-Mart Stores Inc. (NYSE:WMT) reported December same-store sales were up just 1.7%, which was below the projection for a rise of 2.8%. Still, this was a rare increase in sales when many retailers were actually down for the month. Wal-Mart officials also lowered fourth-quarter earnings projections, a familiar trend early this New Year. WMT shares were off about 8% in early trading.

Investors got another glimpse of employment data this morning ahead of Friday’s key monthly jobs report. The weekly unemployment claims release came out at 467,000 which was quite a bit better than feared. The forecast called for about 540,000 ...

U.S. stocks are expected to open solidly lower, pressured by a profit-warning and soft December sales from discount retailer Wal-Mart Stores Inc. (NYSE:WMT) and by losses in Europe and Asia. The slide in Asia wiped out initial 2009 gains, with the overall market off more than 3% as bank, energy, chip and pc maker shares were in retreat mode. Crude oil stabilized after Wednesday’s 12% hit, but other commodities were down, which could weigh on companies involved in mining and other raw goods businesses. The Dow was expected to open down 100 points, while the Russell 2000 (NYSE:IWM) was seen down 0.8%, near 493.00.

The weekly unemployment claims report came in at 467,000, which was quite a bit better than the forecast for 540,000. However, continuing claims rose to 4.6 million, the highest since November 1982.

In overseas trading, European markets were down even in the face of another rate ...

Small-cap stocks pushed higher on the open, bolstered by a mild bounce in energy markets, approval for GM’s finance arm to become a bank holding company and a modest rise in Asian equities. Those supportive elements were countered by a dreary picture on the consumer spending front. At 9:56 a.m. ET, the Russell 2000 (NYSE:IWM) was up 1.82, or 0.39%, at 472.30.

With many European markets closed overnight for the Christmas holiday and with quite a few Americans extending Thursday's break into a four-day weekend, volume in equities could be lethargic today. And next week could be an extension of the tame action, with another Thursday holiday for New Year’s celebrations ahead of the weekend.

MasterCard Advisors said that holiday spending from Nov. 1 through Dec. 24 shapes up as one of the worst holiday seasons in decades, with overall sales down 2% to 4%. With about two-thirds of the U.S. economy driven by spending, the slide in year-end shopping is a stark reflection that consumers are struggling amid rising unemployment and falling home values. Despite plenty of gloom about what appears to be a very sluggish holiday spending environment this year, Amazon.com Inc. (Nasdaq:AMZN) officials said that this holiday season was its “best ever” with the peak day coming on Dec. 15. AMZN shares were up 3.7% shortly after the open. Even with all the retailer worries abounding right now, it’s interesting to see that Wal-Mart Stores Inc. (NYSE:WMT) has been the best performing Dow stock this year.

General Motors Corp. (NYSE:GM) was up 10% this morning, lifted by news that the automakers financing arm, GMAC LLC was granted approval by the Federal . . .

Small-cap stocks started out Thursday’s trading session in the red, but quickly bounded back into positive territory showing similar resilience to “bad” news that was seen during Wednesday’s rise. So far today, investors were juggling a raft of disappointing profit reports against the bullish scenario from a fresh batch of rate cuts around the world. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was up 7.20, or 1.59%, at 460.96.

Several big companies announced plans to reduce workforce numbers this morning, reinforcing the concept that the jobs picture will get uglier before it gets better -- a numbing thought ahead of Friday’s big monthly employment release. There was a bevy of companies that either missed the profit forecast this morning, or lowered the outlook, but the one that seemed to spark the biggest response in pre-market trading was E I du Pont de Nemours and Co. (NYSE:DD), as chemical manufacturer DuPont said it now expects to lose money this quarter versus a previous projection for a profit. In addition, DuPont said it would cut 2,500 jobs. AT&T (NYSE:T) said it would slash some 12,000 jobs.

Economic data on weekly unemployment claims came in better than feared, but the expectations were so terrible that the upside surprise on claims didn’t have much kick. After all, the headline figure still came in above 500,000, which is a big number historically. What’s more, the number of Americans extending unemployment insurance because they can’t find a job rose to the highest point in 26 years. Simply put, firms are laying off employees and they can’t find work. The factory orders report this morning came in at minus 5.1%, which was worse than the forecast for a drop of 3.8% and which was the biggest decline in more than eight years.

In overnight action, central bankers around the world were busy slashing interest rates to help bolster sagging economic activity. The European Central Bank sliced 100 basis points off their benchmark rate, bringing it down to 2%. Meanwhile, . . .

Small-cap stocks may have finished out November like a lamb, but they started out December like a lion, sinking hard and fast today in an abrupt about-face from last week’s strong upward surge. Slumping manufacturing reports around the world triggered today’s rout and the only safe place to park money was in credit instruments as financial, industrial, retail and commodity markets were in retreat mode. The Russell 2000 (NYSE:IWM) closed down 56.05, or 11.85%, at 417.09, snapping a string of five consecutive winning sessions with the worst daily loss of the year. The Russell is now down 46% for 2008, while the Dow is down 39% and the S&P 500 is down 44%.

Credit market safe havens were the preferred outlet of choice today, as investors fled stocks and sought refuge in Treasuries – especially after Federal Reserve Chairman Ben Bernanke said that the Fed could buy long-dated Treasuries and that the economy remained under considerable stress. He also said that the Fed’s scope for reducing rates to stimulate growth was limited at this point, but that the U.S. economy was now better equipped to deal with the credit crisis. Yields on benchmark 10-year notes went wild, sinking more than 7% at one point during the day to about 2.7% as strong demand for notes lifted the price and slashed yields. Treasury Secretary Henry Paulson said that recent bailout moves were making progress, that banks should increase lending habits and that he has more programs developing to boost lending. He also said that mortgage rates have not come down as much as hoped and that Americans know the economy is in recession. The market extended the afternoon sell-off as he spoke.

The market got off on the wrong foot today when manufacturing data out of China reflected a big drop in new orders. China is the world’s hub for labor, with widgets assembled there and shipped out around the globe. Then, manufacturing reports out of Europe were dour, setting the stage for a startlingly bad report on manufacturing activity here in the United States. The ISM Manufacturing Survey came in at 36.2, which was below the 38 forecast, and which was also the lowest reading in 26 years. What’s more, sub-index data on prices paid was the lowest in 59 years and the new orders sub-index was the lowest since 1980. This is a heavy week for economic data, and today’s numbers clearly sent an icy shudder through the market. As the week progresses, we’ll see data on vehicle sales, services sector activity, factory orders and weekly claims as we head toward Friday’s big monthly employment release. What’s more, we’ll also have weekly and monthly retail sales numbers to pour over, . . .

Small-cap stocks edged slightly higher in a relatively tame post-holiday session, climbing into positive ground just minutes before the close, with support from financial, manufacturing and construction stocks countered by a weak tone in energy and technology shares. Also, retailer stocks were struggling on an important day that signals the kick-off for holiday shopping.

The Russell 2000 (NYSE:IWM) closed up 4.28, or 0.91% at 473.14, putting the finishing touches on a stellar week (which saw the Dow have the best percentage gain in more than 70 years). For 2008, the Russell 2000 is now down 38%. Meanwhile, the Dow is down 33% and the S&P 500 is off 39% for 2008.

Crude oil prices took a hit today, with futures down 5% and the price of crude slipping back below $52 a barrel. Energy shares were a major drag on the overall market performance today, with the Energy Select Sector SPDR Fund off some 1.7%.

Tech stocks started out the day in a dour mood following declines in Europe when major chip-maker STMicroelectronics lowered its outlook. Tech shares persistently trailed major indices today and the tech-laden Nasdaq 100 dipped 0.6%. Europe shares struggled in general today following news that unemployment rates in the Eurozone tumbled to 20-month highs and confidence tumbled to 15-year lows.

Dow component Wal-Mart Stores Inc. (NYSE:WMT) – the only Dow stock up for the year – took a 1.4% hit today, perhaps tied to news that an employee was killed in the rush of Black Friday shoppers when a store in New York opened early this morning. Four shoppers, including a pregnant woman, were also treated for injuries in the stampede incident, adding a new somber meaning to the “Black Friday” moniker. The S&P Retail Index was down 1.7% today, perhaps a caution sign for not just retailers, but the overall consumer spending mentality heading through year-end. However, there remains a sense that much of the “bad news” about the holiday season and the . . .

Small-cap stocks took flight this afternoon, spurning fresh bear market lows as bargain-hunters swooped in to snatch up deals, especially in the oversold and downtrodden commodities arena. The market once again showed a willingness to look past dreary employment data, seeing bad news on that score as Wednesday’s worries. The Russell 2000 (NYSE:IWM) closed up 38.41, or 8.48%, at 491.20. For the year, the Russell is down 36%, while the Dow is off 33% and the S&P 500 is down 38%

The weekly unemployment claims report this morning showed that the number of Americans filing continuing claims is at the highest point in 25 years, and just the latest weekly figure alone was the highest since September 2001. Still, the market barely budged when those figures came out, even though they were worse than expected, which created an aura that the jobs numbers weren’t behind market actions today. Even when the market crumbled in the afternoon and sank to new lows, you could tell there was more to the story than just worries about the jobs picture.

Coming into this morning’s activity, investors also had to weigh a revenue warning from technology bellwether Intel Corp. (Nasdaq:INTC); solid quarterly profits, but a mixed outlook from the world’s largest retailer, Wal-Mart Stores Inc. (NYSE:WMT); another wave of selling in overseas markets; a rise in bank lending rates for the first time in a month; the first German recession in five years; and a dip in crude oil prices to 22-month lows before an afternoon snap-back bounce in concert with equities.

“I think selling was related to the lift in Libor rates, poor earnings at Intel, weak guidance from Wal-Mart and ongoing disappointment over the TARP,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview. “There have also been rumors that GE’s dividend may be cut. When the market started to rally back, I think sellers did not want to press in front of the G-20 meeting, insider buying at GE was announced and the earlier selling in stocks was not confirmed by outside market action.”

The market appears preoccupied with finding a bottom for the collapse, which is understandable because the risk is obviously much less near the lows. The pace of market declines has now shifted into a grueling slow-torture process, especially compared with the breakneck speed of the September-October collapse, . . .

Small-cap stocks are expected to open slightly lower, with tech stocks pacing the early declines following a sales warning overnight from Intel Corp. (Nasdaq:INTC). Stock markets around the world were in retreat mode overnight, especially emerging market countries, which could also weigh on U.S. stocks early this morning. The somber tone on the economy continues to resonate after weekly unemployment claims reached a seven-year peak this morning. On a positive note, Wal-Mart Stores Inc. (NYSE:WMT) slightly beat the profit forecast, which provided a brief modest upside push to stock index futures this morning ahead of the claims release. Stock index futures were off about 0.3% ahead of the opening, which would suggest a Russell 2000 (NYSE:IWM) open near 451.

The weekly unemployment claims report came in at a jolting 516,000, well ahead of the forecast for 480,000 and at the highest point since September 2001. Despite the dreadful news on claims, the market was basically unchanged immediately after the numbers.

Overseas markets took a hit overnight, with a global stock index down some 3% following the big 6% slide in American small caps Wednesday. Emerging markets continue to reel, with Russian stocks off some 8% after re-opening for trading following a two-day halt. Stock markets were shut down in Kuwait until Nov. 17 in an effort to stem the selling tide. Emerging markets in Poland were off 4%, Bulgaria . . .

Small-cap stocks opened lower, but quickly trimmed losses as enthusiasm fueled by another round of global rate cuts helped soothe the sting of yet another sobering batch of economic reports. At 9:51 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.74, or 3.83%, at 510.81.

The weekly claims report came in at 481,000, which was below the forecast of 475,000 and which included an upward revision for last week’s figure as well. The most sobering figure on the claims report was the continuing claims number, which was pegged at 3.84 million, the highest level in more than 25 years. Americans aren’t just losing jobs, they are struggling to find new ones too.

The weekly claims data often gets extra emphasis right in front of a monthly employment report, and neither the weekly claims figure or the ADP survey Wednesday have raised hopes for a bullish surprise on the monthly jobs report Friday morning. Just this morning, analysts at Goldman Sachs raised their projection for the decline in non-farm payrolls to 300,000 from 250,000 (the market consensus is minus 180,000). Goldman also was looking for the unemployment rate to climb to 6.4%, a jump of 0.3% from last month.

The market did gather some support from aggressive rate cuts overnight in Europe, with the Bank of England slashing rates by a whopping 150 basis points, which put their benchmark rates at the lowest point in some 53 years. In addition, the European Central Bank lowered rates by 50 basis points, and even the Swiss National Bank lowered rates. ECB President Jean-Claude Trichet said that the central bank will do what is needed to restore financial stability

Tech stocks paced early declines this morning, powered by a somber outlook . . .

Small-cap stocks weathered dreadful manufacturing data, plunging car sales, slumping energy stocks and ongoing worries about the economy to post a minor gain Monday. Selling interest was offset by optimism over steady declines for inter-bank lending rates and ideas the bad news on the economy has already been priced into the stock market. The Russell 2000 (NYSE:IWM) closed up 0.97, or 0.18% at 538.50, posting the fifth consecutive higher close, something that hasn’t happened since early April. For the year, the Russell is now down 30%, while the Dow is off 30% and the S&P 500 is down 34%.

The market opened higher in line with yet another decline in Libor lending rates overnight, and was also bolstered by a gain in Asian stock markets. Even after the ISM Manufacturing Survey missed the forecast, small-cap stocks were reluctant to press the downside. It was interesting to note that today’s range of about 10 handles marked the smallest daily trading range since Aug. 26 and was easily the calmest session seen since the collapse began back in mid-September.

Perhaps some of the calm was tied to investors staying away from the market during a week of heavy economic event risk, or perhaps they were reluctant to aggressively take on positions ahead of Tuesday’s presidential elections in the U.S. Barack Obama is widely expected to carry the popular vote and usher in a transition to the White House, but market watchers are still keenly watching how the Senate and House races shape up. There is some thought that a huge sweep by the Democrats could spark some unrest for the stock market on the idea that the country tends to prefer a “balance” between parties in power.

As for the ISM Manufacturing report, it came in at 38.9%, well below the 50% line indicative of contraction in the manufacturing sector. The data clearly suggest that the economy has downshifted into recession-style economic activity, and today’s individual automaker vehicle sales numbers certainly didn’t paint a . . .

Small-cap stocks remained moderately higher into the mid-session time frame, with support from lower inter-bank lending rates and analyst upgrades on key technology and retailer firms offset by a somber reading on manufacturing activity. At 12:53 p.m. ET, the Russell 2000 (NYSE:IWM) was up 3.37, or 0.63% at 540.89.

Analyst upgrades on Biogen Idec Inc. (Nasdaq:BIIB) propped up the tech sector, while an upgrade on Wal-Mart Stores Inc. (NYSE:WMT) underpinned the consumer arena.

Looking at broad market sector activity today, wireless telecoms were the top performers, followed by tire and rubber stocks, multiline insurers, life health insurers, glass and metal container stocks, gold and aluminum. On the downside, casinos were out of favor so far today after posting solid gains late last week. Oil exploration and oil production stocks were down, as were department stores, home improvement retail, automotive retail and oil and gas storage stocks.

Crude oil prices were down about 3%, which likely anchored down energy stocks. The U.S. dollar was firm against the euro, which also hindered upside in commodity products. The Commodity Research Bureau Index of 19 physical markets was off about 0.7%.

The market was trading in very tame fashion today, holding a relatively slim trading range while being devoid of the massive volatility that has been the hallmark of action since mid-September. Perhaps some of the volatility was curbed by traders taking a breather ahead of the U.S. elections Tuesday. In addition, there are still plenty of economic reports to rile things up as the week progresses.

Speaking of economic reports, today’s ISM Manufacturing Survey came in at 38.9%, which was below the forecast of 42.0% and way off the 50% line that . . .

Small-cap stocks pushed modestly higher on the opening, and were still holding in positive territory after a dreadful manufacturing report slashed away gains in large-cap index products. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was up 4.05, or 0.75%, at 541.57.

The ISM Manufacturing Survey came in at 38.9%, which was below the forecast of 42% and marked the lowest manufacturing activity index in 26 years.

Now that ISM is out of the way, focus will return to debate about the U.S. elections. The general perception right now is that Barack Obama will win the presidential election, which means market watchers will be looking to see whether or not Democrats win power in the Senate and House. Since 1900, the stock market has averaged a gain of nearly 10% in the 12 months following a Democrat transition into the White House. In addition, vehicle sales were slated to roll in today and could have an impact on automaker shares. The rate for vehicle sales is pegged at 12 million units.

Libor, or inter-bank lending rates, continue to decline and are now at the lowest point since the Lehman Brothers bankruptcy. The steady pullback in Libor rates is seen as a sign that frozen credit lines are thawing and that banks are more trusting on the lending front.

In company news this morning, Wal-Mart Stores Inc. (NYSE:WMT) was upgraded by analysts at JP Morgan and the world’s largest retailer was up 1.1% shortly after the open. Also on the analyst front, Merrill Lynch downgraded rival Goldman Sachs Group Inc. (NYSE:GS) and the investment bank was off 1.3%. Goodyear Tire and Rubber Co. (NYSE:GT) topped the earnings forecast and rallied 14.5%.

Individual small-caps of note were highlighted by Seneca Foods Corp. (Nasdaq:SENEA) was up 25%, gapping higher on light volume. Safe Bulkers Inc. (NYSE:SB) was up 12.8%, climbing above the 20-day moving average for the . . .

In a fitting finish to an exasperating day, small-cap stocks collapsed in the final half-hour of trading as worries about a recession and tight credit lines clouded exuberance tied to a dramatic coordinated global rate cut ahead of this morning’s stock market open. The Russell 2000 (NYSE:IWM) closed down 12.39, or 2.22%, at 546.57, the lowest daily close since August 2004.

It was a turbulent session that saw the market sharply higher ahead of the open, sharply lower shortly after the open, solidly higher in mid-morning, sharply lower at midday, solidly higher with an hour to go, but then finally sinking back into a red sea by the close. For the year, the Russell is now down 28.6%, while the Dow is off 30.2% and the S&P 500 is down 32.9%. At the lows today, the Russell was down 37.1% from the all-time highs.

At approximately 7:00 a.m. ET this morning, the Federal Reserve slashed the target rate for fed funds to 1.5% from 2.0%, which marked the lowest level for fed funds since August 2004. At the same time, central bankers in England, Switzerland, Sweden and China also announced rate cuts, resulting in the first concerted international action on weak economic conditions since the 9/11 attacks seven years ago.

The market appeared to struggle mightily early today with whether or not the surprise global rate cut move was really enough to unclog credit lines and jolt the economy out of the grip of recession. For most of the day, the answer to those questions appeared to be “no.” However, tech stocks led the way back out of the midday slump, apparently driven by bargain hunting and by ideas that access to cheaper money would help investment in technology companies. The tech-laden Nasdaq 100 gave back a 4% afternoon rally by the close, but still managed to finish flat on the day, bouncing off five-year lows in the process. At the trough today, the Nasdaq 100 was down 42% from record highs, near levels consistent with previous recession . . .

Small-cap stocks opened lower, but clawed back to a mild gain about 20 minutes after the open as fear about a recession and tight credit conditions battled overnight euphoria tied to global central bank rate cuts. This marked the first globally coordinated rate cut by central bankers since the 2001 recession in the aftermath of the 9/11 terrorist attacks. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.53, or 0.63%, at 562.48.

Volatility in the two-hour time frame ahead of the actual market opening has been unprecedented this week. Today saw S&P e-mini futures trade in an astonishing 92-handle range overnight as the market rallied on the rate cut news, then slumped as traders digested the news and decided it wouldn’t necessarily avert recession or unclog credit lines. Unless you were awake early this morning well before the opening, then you never even got to rejoice in a brilliant overnight rally in stock market derivatives.

The market was in retreat mode overnight in the wake of Tuesday’s slide to fresh four-year lows, but when the announcement came out at 7:00 a.m. ET that central bankers around the world were slashing interest rates in concert, it sparked a big relief bounce in equities. European shares went from a stunning 6% loss to a brief positive print, bolstered by not just the coordinated global rate cuts, but also by news that the Bank of England was injecting 50 billion pounds to help the banking business. The news on rate cuts came a little late to rescue Asian stocks, with Japan down 9.3%, Hong Kong off 8.7%, China down 3.7%, Taiwan down 5.7%, Australia off 5%, Singapore down 6.6%, South Korea down 5.2% and India down 3.1%. Trade on Russian and Indonesian shares was halted when they reached 10% declines.

For the record, the Federal Reserve slashed its target rate on Fed funds to 1.5% from 2%, the lowest level since August 2004. Meanwhile, the European Central Bank, Bank of England, Swiss central bank, Swedish central bank and even the Chinese central bank also sliced rates this morning.

Perhaps one early sign that the rate cuts weren’t going to gain immediate traction in the market was that gold prices pushed higher despite the news. Gold is seen as a safe-haven and if that market continues to grind higher, its unlikely money . . .

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 . . .

Small-cap stocks are expected to open slightly lower, pulled down by an overnight bounce in crude oil prices and by lingering concerns over the credit crisis. The Russell 2000 (NYSE:IWM) was down about 0.3% in after-hours trading, which would suggest a regular open near 735.40.

Many traders are looking for a choppy trading week, with heightened volatility amid lighter volume as the vacation season is still at a high level. Speaking of time away, U.K. markets were on holiday today, which could reduce morning volume in U.S. asset trading. In other action overseas, Asian markets posted solid gains, with Hong Kong up 3.5%, Japan up 1.6%, Taiwan up 1.7% and Australia up 1.6%.

The U.S. dollar was mixed overnight, up slightly against the euro, but down against the yen and continued to erode moving closer to the opening. Traders will likely keep an eye on the greenback for signals on commodities and on money flow into equities. In addition, the existing home sales report comes out at 10:00 a.m. ET and could influence morning trading direction.

Stocks to watch this morning include Wal-Mart Stores Inc. (NYSE:WMT), which was down slightly overnight in response to the bump in crude oil. Also, Lehman Brothers Holdings Inc. (NYSE:LEH) took a hit overnight as concerns were registered . . .

Small-cap stocks pushed lower on the opening, pressured by troubling economic data that raised concerns about both inflation and employment. That said, the market was hanging in relatively well given the sobering news, with the Russell 2000 (NYSE:IWM) climbing into the green near 10:00 a.m. ET. At 10:03 a.m. ET, Russell was up 0.16, or 0.02%, at 747.86.

Ahead of the opening, the Consumer Price Inflation report showed no relief on the price front, with the headline figure climbing to 0.8%, which was way above the forecast of 0.4%. What’s more, the year-over-year figure rose to 5.7%, the highest mark since January 1991. Even the so-called “core” inflation rate, which excludes food and energy prices, rose faster than the projection. With gasoline pump prices pushing north of $4 dollars a gallon this summer and food prices on the rise, excluding food and energy doesn’t make that much sense anyhow.

The weekly claims report also carried a sobering message this morning, as unemployment claims came in at 450,000, which was down from 460,000 last week, but still above the forecast of 432,000. When looking at a four-week moving average, claims remain on an upward trajectory and at the highest level in six years. The combination of rising inflation and weak labor markets is a very difficult position for Federal Reserve policy makers to navigate.

“Headline consumer inflation spurted again in July because of another sharp jump in energy costs and a large increase in food costs,” Steven Wood, chief economist with Insight Economics, said in an email. “However, lower oil prices should reduce energy costs next month. At the present time the Fed is caught between a rock and a hard place with renewed financial turmoil, a deteriorating economy, and climbing inflation. The Federal Reserve has been counting on energy prices to flatten out and weak economic activity over the next several quarters to cap both overall and core inflation. So far, no joy,” Wood said.

As the market prices in the bad news on the economic front, there are some bright spots to keep an eye on this morning, with automobile manufacturers, thrifts, homebuilders, department stores and airlines all on the upside. The S&P Retail Index took a hit Wednesday, but was on better footing this morning, even though retail leader Wal-Mart Stores Inc. (NYSE:WMT) was unable to sustain overnight gains following decent earnings. WMT shares were down 1% shortly after the . . .

Small-cap stocks are expected to open lower, pulled down by a bearish one-two punch of economic data this morning, which will heighten concerns about inflation and the labor market. The Russell 2000 (NYSE:IWM) is expected to open about 0.2% lower, which would translate to an opening near 745.60.

On the inflation front, this morning’s Consumer Price Index report came in way above forecast, with the headline print at plus 0.8%, compared with the consensus for a rise of 0.4%. The year-over-year rise in consumer prices was at 5.7%, which was the largest in 17 years.

At the same time that traders and analysts were fretting over the inflation picture, the latest weekly unemployment claims report offered no relief on the immediate economic horizon, as claims dipped to 450,000 from last week’s upwardly revised 460,000, but were still well above the forecast of 432,000. Continuous claims rose to 3.417 million, way above the projection of 3.300 million and the four-week moving average for claims is at the highest level in more than six years.

The immediate market response to the sobering economic data was that S&P 500 futures tumbled six handles, retreating from positive territory as the numbers overwhelmed overnight glee about solid earnings results from the world’s . . .

Small-cap stocks opened lower, succumbing to a series of bad news events overnight, including massive quarterly losses at insurance firm American Insurance Group (NYSE:AIG), disappointing sales at discount giant Wal-Mart Stores Inc. (NYSE:WMT), a bounce in crude oil prices and sobering economic data on the jobs front. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 6.09, or 0.84% at 719.80.

The market was already on the defensive ahead of the weekly claims report this morning and when unemployment filings topped the forecast, it generated another leg down in futures ahead of the regular opening. Weekly claims were pegged at 455,000, which marked the largest weekly figure since March 2002. What’s more, the number was well above the forecast of 420,000 and simply adds another layer to ongoing concerns about the labor market. The continuing claims number rose to a fresh cycle high at 3.311 million. The Labor Department said that claims were goosed by a program to extend benefits, but it’s not exactly like the people who need an extension have found a job yet.

“Continuing claims, which are inversely related to job creation, jumped this week to their highest level since December 2003,” Steven Wood, chief economist with Insight Economics, said in an email. “This is an indication that hiring has weakened,” he said.

The pending home sales report, which came out at 10:00 a.m. ET, was up 5.3% and appeared to have limited impact on the market. Even with a gain during June, the number was still down 12% from last year...

The Russell 2000 (NYSE:IWM) is expected to open lower, pulled down by disappointing same-store sales from Wal-Mart Stores Inc. (NYSE:WMT), huge quarterly losses by insurance giant American Insurance Group (NYSE:AIG), troubling weekly unemployment claims and a jump in crude oil prices overnight. The Russell 2000 was down about 0.5% in after-hours trading, suggesting an open today near 721.50.

The weekly claims report came in at 455,000, which was well above the forecast for a decline to 420,000. The 4-week moving average for claims shot to 419,500 and continued claims are at 3.311 million. The recent surge in claims provides a troubling picture of the labor market, and undercuts hopes for economic recovery.

There was an expectation ahead of the July same-store sales reports that discounters like Wal-Mart and Costco (Nasdaq:COST) would outperform more expensive fare from the big department stores as we approach the “back-to-school” sales push. However, if WMT struggles, it sets a nervous tone for the entire group. It should be noted that COST did beat the forecast for sales, which takes a little of the edge off WMT’s disappointment...

Small-cap stocks put together a solid rally Tuesday, essentially recapturing the lost ground from Monday’s sharp decline. The market got an early boost from sinking crude oil prices, and extended those gains after the FOMC report failed to spark any fresh concerns. The Russell 2000 (NYSE:IWM) closed up 16.90, or 2.40% at 721.04. In the last three weeks, the market has generated one-day rallies of more than 2% on four occasions, which is an unusually large number of singular big-rally days jammed into such a short time frame.

Foreign exchange markets seemed to say that the Fed was on the right path, with the U.S. dollar jumping more than 100 basis points against the euro, and the dollar index climbing to the highest point since mid-June. In general, at this stage of the economic cycle, a strong greenback is seen as a sign of strength for the U.S. economy, and should encourage foreign asset flow into the U.S. stock market.

As for today’s big FOMC report, there was some mild intraday volatility associated with the statement, but the overall response was one of comfort. There is still a diversity of opinion about whether the Fed is in a position to fight inflation with tighter policy because of rising unemployment and soft economic conditions, but there also is a sense that the recent pullback in energy prices and other commodity markets may have provided the FOMC members with some valuable time and breathing room to combat a difficult situation...

With a push from its largest shareholder, little-followed microcap play Crown Crafts Inc. (Nasdaq:CRWS) could be poised to finally unlock shareholder value in the coming quarters.

On July 3, Gonzalez, La.-based Crown Crafts announced a settlement agreement with Wynnefield Capital, its largest shareholder. The agreement averts a proxy contest showdown between the long-time shareholder and the designer of infant and toddler bedding, blankets and accessories. As part of the settlement, Crown agreed to add a Wynnefield nominee to the company’s board of directors. Crown also agreed to form a strategic review committee to explore strategic alternatives. Wynnefield is permitted under the agreement to increase its ownership stake in Crown up to 20%. The investment firm currently holds around a 15% stake.

Following a successful restructuring in 2001, Crown has maintained profitability since 2002 through a combination of organic and acquisition-driven revenue growth and sensible moves to clean up its capital structure. The $32 million market capitalization company is the largest producer of infant bedding, bibs and bath items in the United States. Crown’s products are marketed under a variety of company-owned trademarks, such as NoJo and Hamco, as well as licensed trademarks. The sale of products under licenses from Walt Disney Co. (NYSE:DIS) accounted for 30% of total revenue in fiscal 2008. Crown’s top customer is Wal-Mart Stores Inc. (NYSE:WMT), followed by privately held Toys “R” Us, Inc., and Target Corp. (NYSE:TGT).

For fiscal 2008 ended March 30, Crown reported revenue of $74.9 million and net income of $4.4 million, or $0.43 a diluted share, compared with year-ago revenue of $69.2 million and net income of $3.9 million, or $0.39 a diluted share. This reported net income total for fiscal 2007 excluded a gain on refinancing, net of taxes, . . .