Tag - RIMM

Millions of Americans are going mobile with their Internet access. We're increasingly relying on mobile devices for all sorts of activities, but growth in Internet access is downright staggering.

Last spring, a survey by the Pew Internet and American Life Center found that 40 percent of adults used their mobile phones to access the Internet, e-mail or instant messaging. This represents an 8 percent increase over the prior year.

"By 2017, wireless service providers could generate more than $100 billion from services such as text messaging, GPS and movie, and music downloads." says Roger Conrad.

In Personal Finance, he adds, "Even this forecast could prove extremely conservative thanks to an explosion in sales of smartphones." How to play this trend? Here, he looks at Research in Motion (NASDAQ: RIMM).

"Research in Motion’s calling card is the BlackBerry, the dominant brand in the US smartphone market with a 55% market share in the first quarter.

"Research in Motion retains major competitive advantages in the market for large corporations thanks to its proprietary BlackBerry Enterprise server system. The system provides superior security and faster e-mail delivery than competing systems such as Microsoft’s Active Server.

"Economic weakness has slowed corporate demand for new smartphones, but it remains a high-margin business line for RIM. And as the economy recovers, sales should surge as companies upgrade systems and handsets to newer models.

"Since the release of the sleek BlackBerry Pearl in 2006, the company has aggressively targeted the retail market.

"Consumers now account for more than half of all BlackBerry sales against 20% to 25% before the Pearl’s launch. Although consumers are more price-sensitive, it’s a much larger market than enterprise and has stronger growth potential.

"The BlackBerry faces plenty of competition, including the latest iteration of the iPhone. But given smartphones’ still-low penetration, there’s plenty of room for multiple competitors. The real market losers have been traditional cell phones.

"The release of new iPhone handsets has proved a growth catalyst for RIMM because it raised consumer awareness of smartphones. In fact, since the release of the first iPhone, BlackBerry’s global market share has doubled.

"Another catalyst for upside: RIMM plans to release two new handsets over the next six months, the BlackBerry Tour and a new generation of the popular Storm.

"The company has been focusing on improving its user interface to appeal to consumers, and both phones are likely to be strong sellers."
 

Stocks continued their slide today as traders are holding tight until they get the Fed's word on the economy. Bernanke & Co. are expected to wrap things up tomorrow, so we could see another round of lower closing prices. 

The Dow closed down 96.50 points at 9,241.45; the Nasdaq finished at 1,969.73, down 22.51; and the S&P 500 fell back below 1,000 to finish the day's session at 994.35, down 12.75 points. 

Stocks in the Russell 2000 were down 9.75 points to end at 562.12. 

Oil closed at $69.38, down $1.22 and gold was at $946.20, up $1.20.
Bucking the downward trend were small-caps like Avanir Pharmaceuticals (Nasdaq:AVNR) up 30%; EchoStar (Nasdaq:SATS) up 19%; and Ivanhoe Energy (Nasdaq:IVAN) up 15%.  

Trending down with the broader markets many small-cap outpaced the market's fall, including Anthracite Capital (NYSE:AHR), down 30%; Javelin Pharamceutical (Amex:JAV), down 27%; Petroleum Development (Nasdaq:PETD), down 22%; and Flotek Industries (NYSE:FTK), down 20%. 

*****Have you noticed that analysts are starting to downgrade stocks? Sprint Nextel (NYSE:S), Yum Brands (NYSE:YUM), PETsMART (Nasdaq:PETM), MBIA (NYSE:MBI) and Aegon (NYSE:AEG) were all marked down by analysts yesterday.  
Coverage was initiated on American Express (NYSE:AXP) at "Sell" by Ladenburg Thalman. Boeing (NYSE:BA) and Research in Motion (Nasdaq:RIMM) have also been downgraded in the last few days.  

So what gives? If everyone's so bullish right now, why are stocks getting downgraded?  
First, stocks have rallied strongly since March. And second, there's no guarantee that earnings can continue to rise. The analysts may be playing it safe, but investors should take note.  

*****AIG (NYSE:AIG) has doubled in the last three days. If there was ever a company that shouldn't double, it's AIG. The government owns something like 90% of the company. And it's actively selling off its important pieces to pay off debt. It's highly unlikely there will be any return for common shareholders.  

And if a completely speculative stock like AIG is moving, we might expect to see others. And sure enough, General Motors, which now carries the ominous name Motors Liquidation Company (MTLQQ.PK), has very nearly doubled in the last week. I don't think that's a good sign for the health of the stock market.

*****Word is that more traders think the dollar may have put in an important low. That would be bad for stocks and commodities. To follow the action, watch the iShares Barclay's 20+ Treasury Bond Fund (TLT).

When this ETF rallies, stocks are usually selling off. And the chart for TLT shows a pretty decent looking double bottom at $90.

*****The latest FOMC meeting starts today. Nobody really expects the Fed to raise interest rates. Even the inflation crowd has to admit that the economic recovery is too frail for higher rates. Still, judging by the declines in the stock market, investors are nervous about what the Fed has to say.

Alan Greenspan used to try to let his words act as monetary policy. Instead of actually moving rates, he would voice his bearish opinion, in the hope that he could keep a lid on asset prices.

It didn't work. And I hope Bernanke doesn't make the same mistake. There's no substitute for actual changes in rates. And despite the weak economy, investors could probably use a message about asset bubbles and risk.  

*****The Managed America Internet video conference aired last night with great success. You can still catch it if you missed. There's a replay available HERE if you're interested in discovering the trends that will affect your investments for the next couple of years and how you can profit from them.

Ian Wyatt
Editor
Daily Profit

P.S. Investors have been asking me about commodities plays. They know that long term inflation will kick in once the recovery starts to ramp up and that will drive commodities, and the share prices of the underlying stocks, through the roof. My Global Commodity Investing advisory service is benefiting from current commodity prices and will provide one of the only safe havens for profits when inflation picks up. Click here to find out more about Global Commodity Investing.

 

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

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

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

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

A 34% gain in seven days

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

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

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

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

Small-cap stocks edged higher Thursday, a nice reversal from this morning when the market appeared to be in freefall mode after investors received a mixed bag of economic data, another batch of awful profit reports and remained in full fret mode about the government’s bank rescue and fiscal stimulus plans. In the end, the Russell 2000 (NYSE:IWM) closed up 2.47, or 0.55%, at 450.42. Small-caps are now down 9.8% for the year, while the Dow is off 9.6% and the S&P 500 is down 7.5%.

After spending most of this week digesting policy news out of Washington, the market got a chance today to divert attention back toward economic data, but the result was an upside surprise on retail sales that was basically impossible to accept at face value versus a more understandable dour reading on unemployment claims. No surprise there: the bearish claims data won that battle early on.

For those keeping track, the retail sales report showed a monthly rise of 1.0% in January, a far cry from the market’s projection for a slide of 0.7%. A rise in retail sales was deemed dubious right off the bat, and it didn’t help to see things in the report like a 1.6% rise in spending at auto dealers, but a 7.1% decline in unit sales.

“Early weakness was also a function of disappointment over the details of the fiscal stimulus package,” Nick Kalivas, vice president of financial research with MF Global, said in email interview with SmallCapInvestor.com.

Kalivas said that a roaring mid-morning comeback for stocks was fueled by gains in tech stocks, with Apple Inc. (Nasdaq:AAPL) and Research in Motion Ltd. (Nasdaq:RIMM) leading the way. “A favorable analyst note helped AAPL rally, while RIMM recovered from a sharp sell-off Wednesday. Additionally, KO had strong earnings, FCX completed a secondary offering and NTAP could find selling after it released soft earnings overnight,” Kalivas said. In addition, talk that the Obama Administration was developing a plan to slow down the pace of . . .

Small-cap stocks edged higher Wednesday, finding an afternoon reprieve when news broke that a deal was hammered out on the stimulus bill, which lifted the market back up out of the red. Downtrodden bank and financial stocks provided a lift to the market, as did gold stocks, helping to counter weakness in the technology arena. The Russell 2000 (NYSE:IWM) closed up 2.18, or 0.49%, at 447.95 and is now down 10.3% for the year. Meanwhile, the Dow is off 9.5% for 2009, while the S&P 500 is down 7.6%.

The market still seemed a little shell shocked after Tuesday’s swoon when the bank rescue plan didn’t seem to play well with investors. Reaching a deal on the stimulus plan was just a matter of timing and there is a sense that it will take many months for the plan to generate help for the struggling economy, so perhaps it’s not a surprise that bounce off the stimulus deal didn’t seem to have a lot of traction. For the record, the deal comes in at $789 billion and a vote on the final product could take place Thursday and would most likely get a very fast stamp of approval from the White House.

In other policy events today, banking executives spent the day in Washington testifying about the first batch of TARP money that was doled out last year. Bank shares were a bright spot for the market today, with the KBW Banking Index rising about 5%. Small-cap banks dominated the biggest percentage gainers today, with firms like First M&F Corp. (Nasdaq:FMFC) climbing back from a big slide Tuesday. FMFC gained about 21% on the session. Small-cap bank Marshall & Ilsley Corp. (NYSE:MI) rose 12% today, gaining back some of the 26% spiral from Tuesday; still MI shares are down about 85% from the September 2008 peak.

Gold stocks were a source of strength today, likely bolstered by investors looking for a hard goods safe haven away from struggling equities and also amid talk that asset managers have been ramping up allocation percentages on gold investments. Gold futures climbed some 3% on the day, while the Gold and Silver Index . . .

Small-cap stocks pushed higher in early trading Wednesday, supported by scattered bargain hunting after the big downside press Tuesday on disappointment over a lack of details in the bank rescue plan. Bank, financial and commodity stocks were among the leaders on the early rise today after getting battered Tuesday. At 9:53 a.m. ET, the Russell 2000 (NYSE:IWM) was up 5.41, or 1.21%, at 451.17.

Investors will continue to keep a close eye on developments out of Washington today, with hearings slated on the first distribution of the TARP funds, ongoing banter about the stimulus plan and any “damage control” following Tuesday’s messy response to Treasury Secretary Timothy Geithner’s rollout of the bank bail out package.

The MBA Mortgage Applications Index fell 24.5% in this week’s report, slipping back to the lowest level since November. The purchase sub-index was down 9.8% to the lowest level since December 2000 and this decline in mortgage activity took place even though mortgage rates actually edged slightly lower in the latest week.

“Despite this week's decline in fixed mortgage rates, mortgage rates have drifted higher since the beginning of the year,” Steven Wood, chief economist with Insight Economics, said in an email. “As a result, mortgage activity has collapsed since the first of the year. Moreover, these data are for applications, not approvals; anecdotal evidence indicates that fall out rates are running as high as 50% so the actual effects on economic activity are far weaker than these data indicate. The housing market is still mired in a deep recession with no indication that a bottom has yet been reached,” Wood said.

In addition to the MBA report, the monthly trade report was released and showed the smallest trade gap in nearly six years, but that gap was still a tad bigger than expected. The report reflected the lowest auto import figure in some 10 . . .

U.S. stocks are expected to open flat to slightly lower as the market takes a “breather” from the big slide Tuesday to further digest the bank rescue plan and the remaining debate on the stimulus plan. Markets overseas were lower, likely catching up with some of the rout from U.S. equities. The Dow was called 5 points lower, while the Russell 2000 (NYSE:IWM) was seen slightly lower, near 445.00.

In Europe, the stock market was off about 1% heading toward the U.S. open; meanwhile, over in Asia, equities were down about 1.5%. Carmaker stocks were off in Europe, but losses in Asia were limited by gains for steelmaker and mining shares.

Here in the U.S., Research in Motion Ltd. (Nasdaq:RIMM) projected an outlook that was less rosy than investors hoped for, which could pull down the maker of Blackberry gadgets and weigh on tech stocks in general.

The MBA Mortgage Application Index fell 24.5% today despite a mild dip on fixed rate mortgages, which suggests that the housing market is still struggling mightily.

Once again today, investors will focus much of their attention on Washington, with hearings on the TARP, the debate on the stimulus and hope from the market . . .

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

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

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

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

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

Small-cap stocks pushed higher Wednesday, overcoming a glut of gloomy economic reports as investors snapped up bargains on homebuilder, financial and retailer shares. The Russell 2000 (NYSE:IWM) closed up 11.93, or 2.70%, at 453.76. Small caps outperformed the Dow for the day, but still lag the big-cap index for 2008, with the Russell off 41% for the year, while the Dow is down 35%. The S&P 500 is off 41%.

The fact that small caps finished off the day with a positive print is a minor victory for a downtrodden market. Early on today investors were greeted with a larger-than-expected decline on payroll jobs from the ADP Employment Survey and then hit with an unnerving drop in services sector activity in the ISM Non-Manufacturing Survey. The weak economic reports took a toll on prices early, as some traders fretted about Friday’s upcoming employment release.

However, the market rallied into midday trading as a rush for homebuilder stocks paced the comeback move. It should be noted as well that not all of today’s economic numbers were downbeat. In fact, the weekly MBA Mortgage Application index jumped 112% to the highest level since mid-February, sparking some hope that sinking mortgage rates will generate fresh activity in the housing arena.

“The mortgage purchase and refinance data are seen as friendly, and Radian said that October mortgage claims were less than expected,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview. “The idea of cheap gasoline and the potential for refinance activity is helping to stoke interest in homebuilders and retailers. Finally, we’re seeing signs of something that could spark a rally and defaults could ease if people can refinance and pay less for gasoline.”

Speaking of gasoline, crude oil prices slipped $0.17 a barrel to $46.79 and notched 3-1/2-year lows during the U.S. trading session despite a drop in inventory levels. Energy stocks were a drag on stocks for most of the day, and the . . .

Small-cap stocks took a dive on the opening, pulled down by slumping technology shares in Europe and in the United States and by a bruising private report on employment which sent shivers through the market ahead of Friday’s big monthly jobs report. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.93, or 2.02%, at 432.89.

Shares in Europe were pressured by sloppy earnings for Infineon, the second-largest semiconductor maker across the pond. Here in the United States, tech bellwether Research in Motion Ltd. (Nasdaq:RIMM), makers of those nifty Blackberry units, tumbled 5% early today after revealing preliminary profit results that were disappointing. RIMM set fresh 52-week lows this morning and the stock is down 75% from the June peak.

In addition, retail sales missed the forecast in the eurozone and a report on services sector activity also disappointed. Speaking of services sector numbers, the ISM Non-Manufacturing Survey came out at 10:00 a.m. ET, with the headline figure at 37.3%, which was way below the forecast of 42.8%.

Elsewhere on the data front, the productivity report came in better than expected this morning, but was overshadowed by the ADP survey and the ISM release. Also, the weekly MBA Mortgage Application survey jumped 11% as prospective home buyers were enticed by a slide in mortgage rates (was this report part of the “story” behind Tuesday’s big rise in homebuilder stocks)?
 
Crude oil prices were relatively stable early this morning, hovering near Tuesday’s closing levels. The downside of that story (at least for energy companies) is that Tuesday’s close was at three-year lows. Big-cap energy firm Slumberger Ltd. (NYSE:SLB) issued a warning right before the opening that 2008 results will miss analyst expectations, which could ripple throughout the energy spectrum today. The Energy Select Sector SPDR Fund was off 2.6% shortly after the open, . . .

Small-cap stocks are expected to open solidly lower, pulled down by slumping technology shares and a decline in European equities. The ADP Employment Survey painted a bleak picture of the jobs situation in the United States, which could add caution into the mix ahead of Friday’s big employment report. Stock index futures were off about 2.2% in pre-market trading, which suggests the Russell 2000 (NYSE:IWM) will open near 433.

The productivity report came in better than expected at 1.3% (the forecast was 0.9%), but the market appeared to look past that data in favor of the more somber ADP survey, which makes sense ahead of Friday’s report. The ADP headline figure suggested the nation lost 250,000 payroll jobs in November, which was below the forecast for a decline of 200,000. Earlier this morning, the weekly MBA Mortgage Applications Survey jumped 11% in response to a plunge in mortgage rates last week, which provides some hope that the economy might be showing some life.

Tech stocks were clearly the focal point this morning, with Nasdaq futures pacing overnight declines and the European stock market pulled down after dreadful results from Infineon, the second-largest semiconductor manufacturer. On the U.S. side of things, a positive reaction to Marvell Technology Group Ltd. (Nasdaq:MRVL) earnings in extended trade Tuesday was swamped overnight by negative preliminary results from Research in Motion Ltd. (Nasdaq:RIMM).

Looking at the chart picture, Tuesday’s big recovery move helped stem the collapse off Monday’s historic decline, but the market remains in a long-term bear market and still lacks any dynamic signs of a bottom. Look for support today around 424.50, . . .

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 closed lower, pulled down by slumping commodity markets, a cautious tone amid peak earnings season and lagging performance in the tech sector. The Russell 2000 (NYSE:IWM) closed down 16.18, or 2.96%, at 530.65 and is now down 31% for the year. For the first time in many months, the Dow has actually pulled virtually even with the Russell for 2008, while the S&P 500 is off 35%. Just a few weeks ago, the annual performance spread between the Russell and Dow was in double digits on a percentage basis, so the recent collapse in the spread between small- and large-caps reflects an even more aggressive flight out of “riskier” small-cap fare from investors.

If Monday’s big rally was primarily about energy, then today’s slide had a few more tentacles in play, but the main theme in motion was about the economy and whether or not global slowing would continue to get in the way of the stock market.

From a global standpoint, a recession in the United States and a sharp downturn around the world will hurt demand for commodity goods, a theme that played out today … not just in the U.S. market, but around the globe. Perhaps the perfect poster child for that theme today was the copper market, which crumbled to the lowest point since December 2005 and is now off 50% from the spring highs. A big part of that pullback is linked to China, where GDP slipped below double digits this week for the first time in five years. And the whole bearish commodities story surely got an extra kick from a big rally in the U.S. dollar, which makes commodities priced in dollar terms more expensive — and therefore crimps demand for those products. The greenback soared more than 200 basis points, or some 2% against the euro, making not just new highs for the move but also charging to the highest point since February 2007. With the dollar on a rampage and commodities limping on demand fears, crude oil’s rally from Monday was short-lived. Crude oil futures plunged some 4% and quickly . . .

Small-cap stocks started out the week with an impressive rally, riding the crest of climbing energy stocks, signs that the credit crisis is on the improve and talk from Federal Reserve Chairman Ben Bernanke that additional fiscal stimulus could be needed. The Russell 2000 (NYSE:IWM) closed up 20.40, or 3.88% at 546.83. The Russell is now down 29% for the year, while the Dow is off 30% and the S&P 500 is down 33%. Small caps lagged large caps today even on the rally, which is a little bit of concern as the same pattern was evident on the recent collapse.

Crude oil futures climbed 3.3% today as energy traders anticipate OPEC will cut production to counter soft demand and sinking prices. However, while the energy story was the dominant theme today, the move was powered by more than gains in the physical market. Oppenheimer analysts announced upgrades for several stocks in the sector and merger news also played a supportive role, which powered buying in beaten down energy stocks across the market capitalization spectrum. As for the M&A news, NRG Energy Inc. (NYSE:NRG) received an unsolicited bid of $6 billion from Exelon Corp. (NYSE:EXC) and the firm would not rule taking this hostile status if need be. The general rule of thumb is that if there are deals to be made in the large-cap world, then there are probably even more attractive deals to be found in the small-cap spectrum.

Interestingly, the rally today in crude oil and energy stocks was not a general push for commodities. In fact, the U.S. dollar gained about 0.6% versus the euro, which makes dollar-denominated commodities more expensive, and despite the rally in crude oil, the Commodity Research Bureau Index of 19 physical markets was basically flat.

The stock market was already on solid footing overnight on news of another steep decline in the inter-bank (or Libor) lending rate, which suggests that frozen credit lines are starting to thaw and that banks are beginning to trust each other . . .

Small-cap stocks remained higher into midday trading, propelled on the opening by climbing energy shares and optimism over another big pullback on inter-bank lending rates. At 12:31 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.10, or 1.16%, at 532.53.

An upside surprise on leading indicators data was another supportive element in the mix this morning, but appeared to garner very little market attention. The leading indicators report came in at plus 0.3%, well above the forecast for a dip of 0.2%.

Meanwhile, a morning speech by Federal Reserve Chairman Ben Bernanke came and went without too much fanfare, although the market may have found some solace Bernanke’s assertion that frozen credit markets were starting to thaw and that inflation worries have receded.

The big story so far today has been the energy arena following analyst upgrades on several key stocks and some potential merger and acquisition activity. Researchers at Oppenheimer & Co. raised their forecasts on a raft of oil companies, and the Energy Select Sector SPDR Fund was up about 5.5% into mid-session. Within the small-cap sphere, PrimeEnergy Corp. (Nasdaq:PNRG) was up about 16% while large-capper NRG Energy Inc. (NYSE:NRG) gapped higher and jumped some 21% after receiving a takeover off from Exelon Corp. (NYSE:EXC).

Other small caps of note include Allscripts-Misys Healthcare Solutions Inc. (Nasdaq:MDRX), which was up about 17%, trying to recapture huge losses suffered the last couple of weeks. Along the health line of thinking, WebMD Health Corp. (Nasdaq:WBMD) was up 22% on news that a merger has been terminated.

Technology shares have been lagging the overall market this morning, and have been a mild drag on small caps amid concerns that spending on technology initiatives is not out of the woods because of the slumping economy around the world. The tech-laden Nasdaq 100 Index was up just 0.8% at midday and key large-cap tech . . .

Small-cap stocks edged lower Friday, pulled down by the logjam in Washington as lawmakers were at loggerheads longer than expected putting together a rescue plan for the embattled financial arena. Still, a rally in the final hour of trading pared losses for small caps, and lifted the Dow into a solid gain. The Russell 2000 (NYSE:IWM) closed down 0.94, or 0.13% at 704.80 and is now down 7.9% for the year. Meanwhile, the Dow was up 1.10% Friday and is now off 15.9% for 2008; the S&P 500 was up 0.34% Friday and had slipped 17.3% so far this year.

The largest bank failure in history became official overnight as Washington Mutual Inc. (NYSE:WM) was seized by regulators and sold for $1.9 billion to JP Morgan Chase & Co. (NYSE:JPM). JPM shares rallied nicely on the news, gaining some 10% on the day. Normally, one would expect the largest bank failure in history to dominate the news landscape, but WaMu’s failure wasn’t all that much of a surprise, and stock in the company was already trading well below $2 coming into the session.

As for Washington’s $700-billion-dollar bailout of Wall Street, the “Paulson Plan” ran into more resistance than expected, especially from the Republican party. Although uncertainty about the final plan kept investors on edge, there seems little doubt that something will still be worked out fairly quickly — probably over the weekend.

The story within stocks for much of the day centered on the tech arena, with tech stocks taking a beating until the final hour of the session. Even the late rally still found the tech-laden Nasdaq 100 slipping 0.92% for the day. Within the tech front, key stocks like Research in Motion Ltd. (Nasdaq:RIMM) were taking a pounding; RIMM shares were off some 27% as the makers of the Blackberry warned that profits would miss the forecast. Also within techs, Apple Inc. (Nasdaq:AAPL) was off about 2.8%. There has been a hope building that passage of a financial rescue plan . . .

In an effort to offer greater flexibility in accessing television content, DVR maker TiVo Inc. (Nasdaq: TIVO) has teamed up with BlackBerry maker Research In Motion (Nasdaq: RIMM) to offer customized TiVo services for the BlackBerry.

Tivo says the smartphone users will soon be able to wirelessly control their TiVo DVRs using a BlackBerry by scheduling television recordings while on the go.

Shares popped up 4%, or $0.28, to $8.10 ahead of the bell. For detailed price information and news stories on Tivo, click TIVO.

Small-cap stocks pushed higher Wednesday, recapturing a little more than one-third of Tuesday’s massive decline as technology stocks and commodity shares were back in favor with investors and distressed financial issues stabilized. The Russell 2000 (NYSE:IWM) closed up 9.87, or 1.40%, at 717.16 and is now down 6.3% for the year. Meanwhile, the Dow was up 0.34% Wednesday, but still is off 15% for 2008, while the S&P 500 was up 0.61% on the day, but remains down 16% for the year.

One could argue that stocks were oversold after suffering the largest one-day rout of the year Tuesday, and while that likely played a role in the bounce today, there were also favorable stories to help fuel the move. It seemed like a majority of the earnings reports were either a non-event or slightly upbeat, and decent results from Texas Instruments Inc. (NYSE:TXN) appeared to project an immediate positive tone into the tech arena, which had been struggling of late. TXN gained about 1% on the day, and other tech stocks such as Research in Motion Ltd. (Nasdaq:RIMM), the makers of Blackberry, climbed 6%.

Homebuilders, which were absolutely hammered Tuesday, mounted a recovery bounce today, with the ISE Homebuilders Index rising 3%. DR Horton Inc. (NYSE:DHI) was up about 4% and Pulte Homes (NYSE:PHM) was up some 5%.

Energy shares were higher, even though crude oil prices slipped to fresh five-month lows. In fact, several commodity sectors provided a boost to the stock market, with coal, metals, steel, oil exploration, gas utilities and integrated oil and gas stocks among the best performing sectors. Chevron Corp. (NYSE:CVX) rose 3% and was one of the top lifts on large-cap indices and that strength spilled over into small-cap energy names as well. It was interesting to see that even though commodity stocks were a bullish element today for equities, the overall Commodity Research Bureau Index was actually down about 0.7%. Part of that slide in physical markets was likely tied to a strong tone in the U.S. dollar, which crimps demand for commodities priced in dollar terms. The greenback charged to fresh 11-month highs against the . . .

Small-cap stocks remained higher into mid-session activity Wednesday, buoyed by a firm tone in technology and commodity stocks that helped counter continuing softness in the financial arena. At 12:50 p.m. ET, the Russell 2000 (NYSE:IWM) was up 7.97, or 1.13%, at 715.27.

Tech stocks gathered upside momentum following upbeat earnings results from Texas Instruments Inc. (NYSE:TXN), which spilled over in the chip arena, with QUALCOMM Inc. (Nasdaq:QCOM), rising 3.6% today. Also, Research in Motion Ltd. (Nasdaq:RIMM) rallied 4.3% as the maker of the Blackberry announced a new flip phone. In recent days, there have been concerns voiced that customers are less willing to spend for new technology and the latest high-end tech gadgets, so the improved tone today was a welcome relief — especially after Tuesday’s big stock market rout.

Commodity stocks continue to provide bullish momentum for small-caps today, even though crude oil prices reversed course and headed lower, slipping to fresh five-month lows. Even with crude oil back on the retreat, coal, steel, metals, gas utilities and oil exploration shares were among the best performing sectors on the market so far today. Even with commodities reflecting a better tone today, the U.S. dollar remained on a roll, charging to fresh 11-month highs against the euro, rising about 0.6% in the process. The greenback was also up nearly 1% versus the yen, . . .

Small-cap stocks closed higher Friday, finishing off a volatile week on a “good news/bad news” tilt as concerns about global growth and slumping labor markets in the United States took a toll for the week, but didn’t stop an impressive recovery for the day Friday. The big news today was that the unemployment rate in America jumped to 6.1%, which marked the highest level in nearly five years. The Russell 2000 (NYSE:IWM) closed up 0.23, or 0.03%, at 718.95 and is now down 6.1% for the year.  For the week, the Russell was down 2.8%. Meanwhile, the Dow was up 0.29% for the day and is down 15.4% for 2008, while the S&P 500 was up 0.44% Friday and now 15.3% lower for the year.

Despite the preponderance of bearish news on the data front this morning, the stock market staged a fairly heroic comeback from the morning lows, powered by a recovery in financial shares, which have beaten down in recent weeks and months. The PHLX KBW Banking Index rallied 4.1%, and the Financial Select Sector SPDR Index rose 2.8%, while key stocks like Citigroup Inc. (NYSE:C), Lehman Brothers Holdings Inc. (NYSE:LEH) and Bank of America Corp. (NYSE:BAC) all posted gains of 4% or more. Even investment banking firm Merrill Lynch & Co. Inc. (NYSE:MER) generated an impressive recovery from the morning lows despite suffering an analyst downgrade by rival Goldman Sachs.

The highly anticipated monthly employment report projected an ugly picture of the labor market, no matter how anyone might try to spin the numbers. Most market watchers were looking for the jobless rate to hold steady in August at 5.7%, or perhaps tick up to 5.8% at the worst … but soaring above 6% was a sobering thought for all. In addition to the dreary jobless news, the headline figure on non-farm payrolls tumbled 84,000 jobs, which was a tad below the forecast for a loss of 71,000 jobs.

“So far this year, 605,000 jobs have been lost. The economy has clearly slipped into a jobs recession because the housing meltdown and credit market turmoil has spread to the broader economy,” Steven Wood, chief economist with Insight Economics, said in an email. “Over the past year, the number of unemployed people has increased by more than 2.24 million and the unemployment rate has increased by 1.4 percentage point. In the post World War II period, every time the unemployment rate . . .

Small-cap stocks pushed higher Wednesday, finding comfort in soft energy and firm dollar trends, even as large-cap stocks fretted about global growth worries and a mixed picture on the economic front. The Russell 2000 (NYSE:IWM) closed up 3.40, or 0.46%, at 741.91.

Small caps outperformed large-cap index products and the straight dollar spread of the S&P 500 against the Russell 2000 tumbled to fresh move lows and is at the lowest point in well more than a year. For the day, the S&P 500 was down 0.20% and is now down 13.1% on the year. Meanwhile, the Dow was up 0.14% today and is off 13% for the year. The biggest losses today were suffered in the technology arena, with the tech-laden Nasdaq 100 sinking 0.9%.

The terrain right now seems particularly difficult for investors to navigate. Just because crude oil prices sink, it doesn’t necessarily mean the overall stock market will rally. And just because the dollar is strong, it doesn’t necessarily mean money is shifting into U.S. assets. There are growing concerns that the slide in energy prices is more a reflection of a slowing global economic environment, which could pinch overseas demand for U.S. goods — and U.S. exports were about the only bright spot in the recent economic slowdown. Along those same lines, American technology companies are cautioning that global customers may cut back on spending, which has been a chilly issue tech stocks.

In today’s action, Intel Corp. (Nasdaq:INTC) was the poster child for the tech spending worries, with INTC stock sinking 4.5%. Research in Motion Ltd. (Nasdaq:RIMM), also posted declines greater than 3% and Nokia Corporation (NYSE:NOK) slumped to fresh move lows and are at the lowest point in more than a year amid talk that worldwide cell phone users just aren’t that eager to pay up for the latest and greatest technology gizmos.

The sloppy price action in large caps today also provided some confirmation that Tuesday’s decline in stocks amid a collapse in crude oil prices was not a fluke. Crude oil prices remained on the defensive today, slipping $0.36 a barrel to $109.35, but did manage to bounce about $2 dollars off the intraday low. Outside . . .

Small-cap stocks started out the week with a thud, sinking hard and fast amid concerns about the relentless credit crisis and a potential slowdown in global growth. The Russell 2000 (NYSE:IWM) tumbled 17.06, or 2.31%, to 720.54, generating the largest one-day decline in about four weeks. The Russell is now down 5.93% for the year, while the Dow is down 14.1% after slipping 2.08% Monday. The S&P 500 lost 1.96% today and is off 13.7% for the year.

Financial stocks were once again bloodied, as investors are not confident in bank, brokerage or insurance shares amid slumping economic conditions and uncertainty about the extent of debt write-downs emanating from the mortgage and housing swoon. American International Group (NYSE:AIG) tumbled to 13-year lows today, sinking 5.7% on analyst downgrades, and other financial stocks were also pummeled. The up-and-down (mostly down) world at Lehman Brothers Holdings Inc. (NYSE:LEH) took a turn for the worse today as concerns were voiced about the proposed Korean buyer that emerged late last week. LEH slumped 11.2% on the talk. The Financial Select Sector SPDR Fund shed 3.3% and the PHLX KBW Banking Index was off 3.2%. Nearly every large name bank was in the red today, and that selling momentum spread easily into small-cap financial stocks as well.

Fresh data on the housing arena failed to instill confidence in the bulls that things were ready to improve. Even though the headline figure on existing home sales came in above the forecast (plus 3.1% versus plus 0.9%), there were still troubling elements in the report, included a record high supply of homes on the market and steep price declines from last year. The market will get more data on the housing picture with Tuesday morning’s Case-Shiller Home Price Index, and then later in the morning from the New Home Sales report.

Financials and the never-ending credit crisis weren’t the only worries facing investors today. Talk that the International Monetary Fund was lowering global growth projections was troubling for technology, small-cap and industrial names, and today’s index losses were paced by the tech-laden Nasdaq 100 and the Russell 2000. Within the tech sector, big firms like Apple Inc. (Nasdaq:AAPL) and Research in Motion Ltd. (Nasdaq:RIMM) lost 2.3% and 3.1%, respectively. On the industrial front, Caterpillar Inc. (NYSE:CAT) and 3M Company (NYSE:MMM) were . . .

Small-cap stocks collapsed Thursday, unable to muster a fight against tremendous headwinds from a dramatic slide in tech stocks and record-high crude oil prices. The Russell 2000 (NYSE:IWM) shed 17.88, or 2.50%, to 698.42, the lowest daily close since the tax man came calling April 15.

As far as intense selling episodes go, today’s unraveling marked the seventh-largest one-day point slide of the year and just the ninth time that the Russell generated a decline of 2.50% or more. While small caps were at the lowest point since mid-April, the Dow has been in a selling fury of late and now stands at the lowest level since September 2006. And while small caps were enduring a painful 2.50% loss today, the Nasdaq 100 crumbled more than 4%, so there were some minor signs of index related strength to be found for small-cap holders, but it was more of a “glass half empty” argument, at least for today.

The selling fury in tech stocks clearly spilled over into the entire market psyche, and was headlined by a 13.2% tumble in Research in Motion (Nasdaq:RIMM) shares, which gapped lower when the company lowered forward guidance and never looked back. In all fairness to the makers of the BlackBerry, their stock hit all-time highs just last week. Also on the tech front, software giant Oracle (Nasdaq:ORCL) slipped 5% despite decent quarterly results as the market focused on a gloomier outlook . . .

After plunging out of the gate this morning, small-cap stocks continue to bleed mid-session, besieged by a continued troubling outlook for financials, disappointing guidance by tech heavyweights, a lackluster outlook for the auto sector and a slowing economy —  all of which sparked concern for suppressed corporate earnings for the near foreseeable future.

At 1:19 p.m. ET, the Russell 2000 (NYSE:IWM) was down 16.70, or 2.33%, to 699.60, tumbling below a two-month low on April 22. The Dow skidded 241.58, or 2.05%, to reach a low for the year of 11,570.25, while the Nasdaq swooned 61.92, or 2.58%, to 2339.34.

Stocks are under pressure after Goldman Sachs downgraded the brokerage sector to “neutral” from “attractive,” citing a lack of positive catalysts going forward and eroding fundamentals. Goldman claims that investors are focusing more than needed on the possibility of another major bank collapse. The investment bank also downgraded Dow component Citigroup (NYSE:C) to “sell,” pushing the bank down 5% midday. Merrill Lynch (NYSE:MER) shares were off 4%, joining the weakness seen in financial shares after the opening.

Fresh concerns surrounding the health of the auto industry have also surfaced after Goldman Sachs lowered its rating on General Motors Corp. (NYSE:GM) to “sell” from “neutral,” sending shares sinking 10% mid-session.

The tech-heavy Nasdaq has been battered the most today, dragged down by disappointing guidance from tech juggernauts Research in Motion (Nasdaq:RIMM) and Oracle Corp. (Nasdaq:ORCL) Oracle posted solid quarterly results, but provided a cautious outlook for the next quarter. Shares for the third-largest software maker were off 3% early. Rim was downgraded by JMP Securities to market perform from market out perform today The blackberry maker said its revenue and earnings doubled, but issued a cautioned that earnings could come under pressure as it ramps up spending.

In economic news, GDP for the first quarter was upwardly revised to 1%, as expected. The figure is dated as we near the end of the second quarter, but does indicate that the economy did not slide into negative growth to start 2008. Weekly claims figures rose to 384,000 in the latest week, which was slightly above the forecast. Existing home sales clocked in better than expected at plus 2%, with an annual . . .

Small-cap stocks took a nosedive on the opening, knocked to the canvas by yet another rout in financial stocks and by a dramatic morning plunge in technology stocks. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 8.99, or 1.25%, at 707.31, reaching the lowest point since April 24.

The tech-laden Nasdaq 100 Index was off about 2% this morning, with big-name tech stocks like Research in Motion (Nasdaq:RIMM) and Oracle Corp. (Nasdaq:ORCL) leading a jolting slide in the tech arena to start the day. RIMM shares were off 10% as its forward guidance disappointed. Oracle reported solid quarterly results, but provided a cautious outlook for the next quarter. Shares for the third-largest software maker were off 3% early.

The selling mood was also fueled this morning by a steep climb in crude oil prices, which shot back above $138 dollars a barrel. Commodity markets look firm to start the day amid a soft tone in the U.S. dollar. Corn prices are called sharply higher, copper prices were up 1.5% overseas and aluminum prices are up 10% so far in June, which keeps nagging inflation fears right in front of the market at a difficult time for the economy and for interest rate policy makers.

Analyst downgrades also took a toll on stocks this morning as researchers at Goldman Sachs lowered its rating on General Motors Corp. (NYSE:GM) overnight to a “sell” from “neutral,” and the stock tumbled 10% shortly after the open. Goldman put Citigroup (NYSE:C) on its sell list and the nation’s top bank slumped more than 5% early. Goldman also slashed its rating on the brokerage industry, so those stocks could be under pressure this morning as well. Merrill Lynch (NYSE:MER) shares were off 4%, joining the weakness seen in financial shares after the opening.

Financial stocks were taking a hit overseas, with European bank Fortis sinking some 10% on news that it will cancel its dividend and raise capital. European stocks were also off more than 1% heading into the U.S. open, while Asia shares were . . .

Small-cap stocks are poised for a dramatic slide on the opening in the wake of analyst downgrades for big-name stocks, slumping financial and tech shares, a batch of disappointing earnings figures and a rise in crude oil prices. The Russell 2000 (NYSE:IWM) was down about 1% in after-hours action, which suggests an opening near the 710 level.

Influential researchers at Goldman Sachs downgraded General Motors Corp. (NYSE:GM) overnight, and the stock tumbled 5% in after-hours trading. Goldman also put Citigroup (NYSE:C) on its sell list and the nation’s top bank slumped more than 4%. Goldman also slashed its rating on the brokerage industry, so those stocks could be under pressure this morning as well.

Financial stocks were taking a hit overseas, with European bank Fortis sinking some 10% on news that it will cancel its dividend and raise capital. European stocks were also off more than 1% heading into the U.S. open, while Asia shares were mixed.

On the tech front, big-name large caps like Research in Motion (Nasdaq:RIMM) and Oracle (Nasdaq:ORCL) were down 7% and 3%, respectively, in overnight trading, with RIMM’s profit outlook falling short of expectations and ORCL issuing a cautious . . .

Small-cap stocks pushed higher Monday, buoyed by an improved tone in financial shares, a rise in tech stocks and a pullback in crude oil prices from record highs set early in the session. The Russell 2000 (NYSE:IWM) gained 7.12, or 0.97%, to 740.74.

“Financials are strong going into Goldman Sachs earnings tomorrow. Lehman Bros. (NYSE:LEH) also failed to ignite selling and there was a Washington Post story suggesting that the Fed would not tighten rates, which has helped financials,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview.

Kalivas said that investors appeared to be rotating out of some defensive names and into financial stocks. In addition, smaller oil companies and regional banks were helping to provide a lift to small caps relative to the big index products.

Small caps started out the day in the red, pressured by a sudden upside burst in crude oil prices, which charged to new record highs just shy of $140 dollars a barrel. The surge in energy prices was complemented by climbing metals prices and record high corn prices. However, a pullback in crude oil back toward $134 helped ease concerns about energy prices and refocused attention on a solid performance in financial issues.

The U.S. dollar slumped against the euro today, which played a role in supporting the energy market, as well as other commodities. The greenback was pressured by record inflation numbers in the eurozone, a weekend G8 meeting that did not spotlight a strong dollar stance and by talk that rate hikes in the United States have been premature. Goldman Sachs weekly Economics Analyst report said that while they could not rule out a rate hike given recent warnings by Federal Reserve Chairman Ben Bernanke and vice chairman Donald Kohn about inflation expectations that tightening at this stage is “inappropriate” and “unlikely any time soon.”

Goldman Sachs analysts said that “as these points become apparent, we . . .

When Motorola (NYSE:MOT) caught the cold shoulder of cell phone buyers as the faddishness of its RAZR line faded, Multi-Fineline Electronix Co. (Nasdaq:MFLX) felt the chill.

At one point, the Anaheim, Calif., maker of flexible printed circuit technology relied heavily on Motorola, which had accounted for nearly 90% of Multi-Fineline Electronix’s sales. It was Multi-Fineline’s flexible wizardry that enabled Moto to deliver the ultra-sleek RAZRs that consumers craved.

The RAZR nicks and cuts are healing at Multi-Fineline, commonly known as M-Flex, amid a management restructuring and other changes. It was a rather quick turnaround: in the January through March quarter of 2007, the company warned of a sales shortfall.

Having learned from that painful lesson, Multi-Fineline Electronix is broadening its customer base to makers of cell phones, hand-held devices and smart phones, while eyeing potential growth in medical devices and other specialties. Despite the demand rollercoaster created by the retrenching U.S. economy, the company has three quarters of positive results under its belt.

Analysts who follow M-Flex apparently didn’t find a lot to fault when results for the fiscal second quarter came out May 6. According to a Thomson Reuters survey, two of the five analysts polled have Multi-Fineline as a “buy,” with the other three calling it a “hold.”

Shares of M-Flex have held steady around $20 in recent weeks, which is less than a third of the highs seen in March 2006, when the stock topped $67. Multi-Fineline shares hit a 52-week high of $24.14 on March 12, and a low of $9.70 on Aug. 3. The Thomson median price target is $23. Shares closed Monday at $20.19.

Founded in 1984, Multi-Fineline has become a leading provider of flexible-circuit technology. M-Flex also provides end-to-end services to electronics companies, from design to production and assembly. Most manufacturing takes place in China, where it has some 800,000 square feet around Suzhou. Construction is beginning this month on a new plant that will expand capacity in about a year by $30 million in monthly sales on top of the $64 million in current monthly sales capacity.

Following the May 6 release of results for the three months ended March 31, M-Flex shares shot up 12%, and for good reason. The company said in the fiscal . . .

Small-cap stocks pushed higher Thursday, lifted by asset flow into equities, demand for technology shares trickling down from the large-cap issues and a perception that credit conditions are on the improve. The Russell 2000 (NYSE:IWM) rose 7.31, or 0.99%, to 743.28, the highest daily close since Jan. 3.

“I think investors are underweight equities, and in recent weeks there has been movement out of cash and treasuries into stocks,” Nick Kalivas, vice president of financial research with MF Global, told SmallCapInvestor.com.

Kalivas said that a narrowing of credit spreads after the JP Morgan purchase of Bear Stearns and the Fed’s aggressive open door policy on liquidity to the dealer community has sparked buying in equities. In addition, huge debt issuance in the last few weeks has bolstered corporate balance sheets.

“I think money has come to stocks because of robust profits in the non-financial sector and the macro news has not shown further meaningful weakness in the economy. I also don’t think players want to be too short given the injection of stimulus from tax rebate checks and other measures,” Kalivas said. Simply put, stocks are cheap relative to treasuries and cash, which attracts money flow into equities.

More attractive pricing of DRAM products appears to be pulling investors toward tech issues. What’s more, the possibility of great new “toys” from big-cap players like Research in Motion (Nasdaq:RIMM), with the touch screen Blackberry, and Apple Inc. (Nasdaq:AAPL), with its iPhone upgrades spreads goodwill down to all tech stocks, big and small. Hey, we’re all kids at heart, and there’s nothing like . . .

Stocks continued their assent midday, as oil slipped, the greenback gained and investors shrugged off lackluster earnings news from bond insurer MBIA.

At 12:49 p.m. ET the Russell 2000 (NYSE:IWM) was up 1.34%, or 9.63, to 729.68 while the Dow had gained 0.79%, or 100.79, to 12,846.67.

Oil futures continued to slide midday as investors locked in gains from last week. A crude oil contract for the month of June was off roughly $1.21 midday to $124.75, down from the $126 level breached last week.

As oil futures sold off, the dollar rallied against other major currencies, quelling inflation concerns.

Just this morning Chicago Fed President Charles Evans said that housing was still a drag on the economy, and that growth risks were to the downside, but inflation risk was on the upside. Evans also said that U.S. growth should improve in the second half of the year, but that tight credit markets would crimp near-term GDP.

In corporate news, the financial sector is making headlines today. Investors shrugged off MBIA’s (NYSE:MBI) first-quarter results, as the bond insurer swung to a first-quarter loss on account of $3.58 billion unrealized loss on insured derivatives. Shares rallied.

Small-cap shares opened higher Monday, lifted by advances in overseas equity markets, a firm U.S. dollar and a dip in crude oil prices. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was up 0.86, or 0.12%, at 720.91.

The U.S. dollar was up nearly 1% against the yen into the market open, and pushed about 0.2% higher versus the euro. The firm dollar tone was linked to a $2-per-barrel pullback in crude oil futures, which came off Friday’s record highs amid profit-taking.

Financial shares could find a boost this morning from a jump in the largest European bank HSBC, which climbed about 2% overnight on profit news. Early on this morning, Citigroup (NYSE:C) was up 0.6% and Bank of America (NYSE:BAC) was up about 0.8%. Other large-caps of note included Wal-Mart (NYSE:WMT), which was up 1.2% shortly after the opening on optimism ahead of earnings. Research in Motion (Nasdaq:RIMM) jumped 2.4% on news that the company was unveiling a new BlackBerry Bold Smartphone.

A massive earthquake in China overnight caught trader attention, but a lack of details seemed to leave the market without a feeling for whether or not it would have an impact on equities in the United States.

Looking ahead to this week’s action, the economic calendar picks up steam after a relatively tame risk quotient last week. Not only will the market have to navigate through a batch of important data on retail sales, inflation and housing starts, but there is a glut of Federal Reserve speakers on the docket.

Speaking of Fed speakers, Chicago Fed President Charles Evans was the first one up to the plate this morning, saying that housing was still a drag on the economy, and that growth risks were to the downside, but inflation risk was on the upside. He said that U.S. growth should improve in the second half of the year, but . . .

Small-cap stocks shot higher Thursday, lifted by a strong performance for the U.S. dollar, sinking energy prices and renewed enthusiasm for technology and retail shares. At the close, the Russell 2000 (NYSE:IWM) rose 13.57, or 1.89%, to 729.75, the highest daily close since Feb. 3, the second-highest close since Jan. 3, and the fourth-highest close of the year.

The greenback climbed to the highest point against the euro since March 25, and was flirting with the highest daily close versus the yen since late February. A recovery in the dollar would suggest that the U.S. economy may have endured the worst of the slowdown, and would also increase purchasing power of foreign goods. There is also some thought that a resurgence in the dollar could trigger a massive unwinding of short dollar/long energy plays that could ignite a wave of buyers back into equities.

Clearly, the energy market was a source of enthusiasm for stock market bulls Thursday, as crude oil prices slumped to 112.55, down nearly 6% from the peak seen earlier this week as rising inventory and a strong dollar take a toll on crude values. Within the energy sector, investors were chilly to earnings from group leader Exxon Mobil Corp. (NYSE:XON), whose shares slipped about 3.4%.

Within broad market sectors, pretty much anything tied to energy or commodities was soft; with gas, oil and gold shares all down. Big losses were also seen in metals and mining stocks, which were off almost 5%. On the plus side, education services . . .

The last thing most small cap investors think of when they look north of the border is for opportunities is Canada’s emerging software industry.

Other than Corel Corp. (Nasdaq: CREL), once a titan in Canada’s equivalent of Silicon Valley outside the country’s capital Ottawa, Canada is not seen as a hotbed of high-technology. But oddly, it is becoming increasingly so. Since the famous worldwide high-tech meltdown in 2001, Canada’s industry has been struggling to recover. And, in recent years, it has recovered considerably. The Conference Board of Canada, the Ottawa-based equivalent of the New York-based board, said just recently in its review of the software industry that nearly two-thirds of emerging software companies reported profits last year, while computer and other technology hardware makers saw their profits soar.

"Profit levels for Canadian computer and electronic product manufacturers nearly doubled last year," it said. Profits hit C$2.1 billion in 2006, with the surge due primarily to dropping capital and material costs. This year, profit margins are forecast to reach 6%, which is just below where they stood during the tech boom (although in real dollar terms, far short of the C$4.3 billion the Canadians profited in 2001).

"This industry is smaller and leaner than it was at the height of the tech boom," says Louis Theriault, director of the Conference Board’s industrial outlook division.

Meanwhile, PricewaterhouseCoopers in Toronto said in a similar review of the fledgling industry that 63% of emerging Canadian software firms were profitable last year, adding that's "good news" and in line with the 65% in 2005, and 56% in 2004.

The report, based on its fourth annual survey of software firms, found that as in past surveys, chief executives officers of these firms continued to predict significant revenue increases for the year ahead.

"However, while the majority of CEOs reported revenue increases of at least 10%, many fell short of their forecast," they found.