Tag -  CORS 

Small-cap stocks got walloped Monday when the shine from Friday’s stunning 4% rally failed to establish a solid footing as investors fretted about the details of the bank rescue plan and were hammered by a ghost from the recent past — crude oil price shocks — at an untimely moment. In the end, the Russell 2000 (NYSE:IWM) closed down 33.30, or 4.42%, at 720.44. On Friday, small caps appeared ready to burst into positive territory for the year, but today’s setback pushed the yearly tally to a loss of 5.9%, which is still much better than the 16.9% loss on the Dow, or the 17.7% slide in the S&P 500.

Crude oil soared some 15% today, the largest one-day advance in history, climbing back near $121 a barrel. With consumers already helping pay the tab to bail out investment banks and other financial institutions while facing rising unemployment, another jump in prices at the gas pump won’t help rebuild a fragile economic position.

The story in physical markets today was reminiscent of the big “short dollar/long commodities” trade that was in vogue for so long the past 24 months or so. Not only did crude oil skyrocket, but copper was up 2.5%, sugar was up 3.8%, cotton rallied 3%, soybeans were up 5% and the dollar got absolutely clobbered. The greenback slumped some 2.3% against the euro and tumbled nearly 2% versus the yen. The iPath GSCI Total Return Index Fund (a commodity tracking ETF), jumped some 4.5% on the day. With Treasuries also pulled down by supply worries tied to the financial rescue package, money flow into commodities, and away from stocks and the dollar was the only clear trend of the day. It’s only one day, but the specter of “stagflation” — one of recession-style growth and high inflation — creeps into the market psyche on days like today.

And the doubt circling the banking rescue package was clearly palpable today. The PHLX KBW Banking Index shed some 10%, while the nation’s No. 3 bank, JP Morgan Chase & Co. (NYSE:JPM) slumped 9% and the No. 5 bank, Wells Fargo & Co. (NYSE:WFC), was down nearly 12%. In addition, there was some sense that the market was facing other worries on the economy’s horizon beyond just a $700-billion bail-out of the financial industry. With inflation spiking today, shares . . .

Small-cap stocks tumbled hard from intraday highs Wednesday as investors digested another rate cut by the Federal Reserve, and the statement accompanying the move. By the close, Russell 2000 (NYSE:IWM) shares were down 2.75, or 0.38%, at 716.17.

Although the overall decline for the day was tame, the slide off the FOMC peak was relatively dramatic. Small-cap stocks initially pushed higher on the rate cut news, but then descended into a freefall that saw the Russell shed 13 handles or nearly 1.8% from high to low.

The bullish capitulation seen in equities after the FOMC news could have simply been a classic case of a “buy the rumor, sell the fact” market response, especially considering that stocks pushed higher into the news. The S&P 500 Index cracked figure resistance at 1,400 shortly after the FOMC decision, but quickly joined small-cap shares on the retreat as investors shied away from the market. It’s worth noting that the Russell clearly led the overall stock market on the way down as selling enthusiasm kicked into gear about 30 minutes after the rate cut announcement.

“I think the markets were perfectly positioned for the Fed, and are now worried about the payroll report,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview with SmallCapInvestor.com. “Financial and retail shares have not confirmed the rally and this is a technical negative that may have sparked profit taking. Small caps are down mostly on a beta trade, but property casualty and regional banks are the weakest names. This may be a negative reaction to the FOMC and Cash America is off on an Ohio bill that limits interest on payday loans,” Kalivas said. He also anticipated that small caps would tread water sideways to lower heading toward Friday’s employment report, as traders would likely be unwilling . . .

Corus Bankshares, Inc. (Nasdaq:CORS), Guaranty Financial Group Inc. (NYSE:GFG) and Hutchinson Technology Inc. (Nasdaq:HTCH) were among the new 52-week lows established during Wednesday's trading among companies with market capitalizations or values under $750 million.

ILOG S.A. (Nasdaq:ILOG), North Valley Bancorp (Nasdaq:NOVB) and First Financial Corp. (Nasdaq:FFCO) were also among the 52-week small-cap lows.

Here are Wednesday's 52-week small-cap lows:

Headwaters Inc. (NYSE:HW), Corus Bankshares, Inc. (Nasdaq:CORS) and BioScrip Inc. (Nasdaq:BIOS) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $750 million.

LandAmerica Financial Group, Inc. (NYSE:LFG), Hutchinson Technology Inc. (Nasdaq:HTCH) and Anaren, Inc. (Nasdaq:ANEN) are also among the top small-cap percentage losers.

Here are Wednesday's biggest percentage losers among small caps:

Corus Bankshares, Inc. (Nasdaq:CORS) shares are slumping more than 15% after the Chicago-based bank holding company announced the elimination of its dividend and reported first-quarter earnings of $4.5 million, or $0.08 per share, which widely missed Wall Street’s expectation of earning $0.21 per share. The firm earned $26.4 million, or $0.46 per share, a year earlier.