Tag - FIG

Small caps closed up about 2% today, outperforming the Dow for the day yet still lagging the big-cap index for 2008, with the Russell 2000 (NYSE:IWM) off 41%, the Dow down 35% and the S&P 500 down 41%. Some of today’s small-cap gainers are QC Holdings (Nasdaq:QCCO), Polypore International (NYSE:PPO) and Furniture Brands International (NYSE:FBN).

Other Market Watch highlights today included:

• 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.
• 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%.
• The ability to rally after a bad reading on the ADP Employment Survey ahead of Friday’s big monthly employment report was a positive sign. 
• Yields on Treasury products were higher as demand clearly was more focused on riskier fare today.
• The weekly MBA Mortgage Application index jumped 112% today to the highest level since mid-February, encouraging the rally.
• The ISE Homebuilders Index jumped 10% and small-cap homebuilders were among the best performers in the group.
• Crude 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.
• Banks, brokerages and other financial firms were clearly a source of strength for stocks today.
• Energy stocks were a drag on stocks for most of the day, and the Energy Select Sector SPDR was basically flat right before the close. 

Small Cap Gainers:

• QC Holdings Inc. (Nasdaq:QCCO) jumped 54% on a volume spike without any apparent fresh news from the payday loan firm.
• Polypore International Inc. (NYSE:PPO) jumped 31% as the lithium-ion battery company announced that one of their subsidiaries received a $2.3 million contract.
• Furniture Brands International (NYSE:FBN) closed up about 26% . . .

Small caps have plunged this afternoon, as recession fears have gripped stocks. Already concerned about still frozen credit piping, a slew of lackluster economic data and a sobering speech by Fed Chairman Ben Bernanki only served to push the market lower. At 2:36 p.m. ET, the Russell 2000 (NYSE:IWM) was down 34.81, or 6.28%, to 519.99.

A ghastly retail sales report, hit equity markets hard this morning, causing traders to keep their fingers on the sell button. September retail sales plunged 1.2%, which was nearly double the forecast for a slide of 0.6%. This marked the largest one-month decline since August 2005. Even worse, this was the third consecutive month retail sales have fallen, which hasn’t happened in more than 17 years. With two-thirds of the U.S. economy driven by consumer spending, the plunge in retail sales signals to the reality of a consumer led recession.

Adding to the grim economic picture, factory activity in New York slumped in October, with the NY Manufacturing Survey down 24.6% to the lowest reading in some seven years.

Also, on the economic docket today, the producer price index, a measure of wholesale inflation, wasn’t nearly as dismal. The headline figure for PPI met the forecast at minus 0.4%. “Although the core component is a little worrisome, lower commodity prices and the firmer tone the USD is taking should restrain costs in the year ahead,” BMO Capital Markets economist, Jennifer Lee wrote today.

Ahead of the opening this morning, the MBA Mortgage Application Survey rose 5.1% as mortgage rates slipped; however, purchase activity remained near seven-year lows. ...