Tag - SAH

Small-cap stocks finished off one of the worst months in history with a four-day rally fueled by improving credit conditions, month-end bargain hunting and a willingness by investors to look beyond current weak economic fundamentals. The Russell 2000 (NYSE:IWM) closed up 4.53%. Today’s small-cap gainers are SM&A (Nasdaq:WINS), MGIC Investment (NYSE:MTG) and Gramercy Capital (NYSE:GKK).

Other Market Watch highlights today included:

• The Russell is now down 30% for the year. The Dow is down 30% for 2008, while the S&P 500 is off 34%. 
• Financial stocks played a key role in the rally today, after lagging on some bounce attempts earlier in the week. The Financial Select Sector SPDR Fund rose 3.3%.
• Small- and mid-cap banks and financial institutions were noted all along the top percentage movers today on various exchanges. 
• Crude oil prices rallied in the final 30 minutes of trading today, but gains in the commodity arena were hampered by a firm tone in the U.S. dollar, which gained about 1.3% against the euro.

Small Cap Gainers:

• SM&A jumped 126% on news that the firm will be purchased by Odyssey Investment Partners for $6.25 a share. See (Nasdaq:WINS).
• Wisconsin Energy to replace MGIC Investment in S&P 500. MGIC shares closed up over 60%. See (NYSE:MTG).
• Gramercy Capital reported 34% Q3 rise in funds from operations, halts dividends. Shares closed up 79%. See (NYSE:GKK).  
• Sonic Automotive reported losses in Q3 but shares closed up a whopping 41%. See (NYSE:SAH).
• China Eastern Airlines Corp. Ltd. gapped higher and soared 27%. See (NYSE:CEA).

Small Cap Losers:

• Penson Worldwide Inc. closed down 40% on news that a subsidiary has incurred a $15.5M unsecured receivable from a firm that has ceased operations. See (Nasdaq:PNSN).
• Bare Escentuals Inc. gapped lower and shed some 40% on soft earnings news. See (Nasdaq:BARE).  
• Sunrise Senior Living announces transaction has been terminated. Shares . . .

In an ironic twist, small-cap stocks finished off one of the worst months in history with a four-day rally fueled by improving credit conditions, month-end bargain hunting and a willingness by investors to look beyond current weak economic fundamentals. The Russell 2000 (NYSE:IWM) closed up 23.32, or 4.53% at 537.49 and is now down 30% for the year. The Dow is down 30% for 2008, while the S&P 500 is off 34%.

Central bank officials around the globe slashed interest rates this week (and more are expected next week as well) and the inter-bank lending rate continued to slip lower, suggesting that banks are now more comfortable and trusting and that perhaps the worst of the credit crisis for financial firms is in the rear-view mirror. The Libor rate has declined 14 consecutive trading sessions, tumbling from more than 5% to 3%, spurring hope that various central bank rate cuts and federal bail-out packages have helped unclog credit lines.

Financial stocks played a key role in the rally today, after lagging on some bounce attempts earlier in the week. The Financial Select Sector SPDR Fund rose 3.3%. Large-capper JPMorgan Chase and Co. (NYSE:JPM) rallied 6% as the firm said it would restructure procedures for some $110 billion in mortgages and would halt foreclosure actions. Small- and mid-cap banks and financial institutions were noted all along the top percentage movers today on various exchanges.

Stocks also received a lift from asset allocation trades out of Treasury markets and into equities, Nick Kalivas, vice president of financial research with MF Global, said in an email.

“Regional small-cap banks performed well today,” Kalivas said. “I think easing credit tensions helped. REITS also traded strongly today. Vornado (NYSE:VNO) boosted its dividend and it helped the entire sector while giving some confidence . . .

Small caps continue to trade in the green midday, though off their highs of the session, after GDP was not as bad as feared. Today’s small-cap gainers are Horizon Lines (NYSE:HRZ), First Industrial Realty Trust (NYSE:FR) and Sonic Automotive (NYSE:SAH).

Other Market Watch highlights today included:

• Advancers were leading decliners by nearly 6 to 1 on the Russell 2000 after the first hour of trading.  
• Norway also joined in on the rate cut fervor as countries around the world toss cheap money at businesses in a drive to thaw frozen credit lines.  
• Hong Kong shot up some 10% and Taiwan was up 6%, as those countries announced rate cuts following the Fed’s rate cut Thursday.  
• Stock markets around the world were in rally mode overnight, with the world stock index up 2.5%, powered by steep gains in some Asian markets.
• Crude oil futures trimmed overnight gains and were hovering near steady levels on the stock market opening.

Small Cap Gainers:

• Shares of shipping company Horizon Lines are up 51%. Goldman Sachs downgraded the stock on Monday to "sell" from "neutral." See (NYSE:HRZ).  
• Shares of First Industrial Realty Trust are up 27% as it reports Q3 profit drop and cuts dividend. See (NYSE:FR).  
• Sonic Automotive shares up 24% as it reports losses in Q3. See (NYSE:SAH).  
• Auto parts supplier Tenneco to cut 1,100 jobs as global auto sales slide. Shares are up 20%. See (NYSE:TEN).  

Small Cap Losers:

• Sauer-Danfoss misses on Q3 earnings, issues cautious outlook. See (NYSE:SHS). 
• Brocade and Foundry Networks to amend merger terms: Foundry's shareholders to receive $16.50 in cash for each share. See (Nasdaq:FDRY).
• Astronics posts decline in bottom-line on higher engineering, development spending, higher manufacturing costs. (Nasdaq:ATRO).  
• Polypore International beats on Q3 results, guides full year revenues below the Street, EPS straddle consensus. See (NYSE:PPO).  

Crescent Banking Co (Nasdaq:CSNT), Sonic Automotive Inc (Nasdaq:SAH) and Riverview Bancorp, Inc (Nasdaq:RVSB) are among the new 52-week lows in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Chimera Investment Corp (Nasdaq:CIM), Stanley Furniture Co Inc (Nasdaq:STLY), Colony Bankcorp Inc (Nasdaq:CBAN), First M&F Corp (Nasdaq:FMFC), BNC Bancorp (Nasdaq:BNCN) and Central Pacific Financial Corp (Nasdaq:CPF).

Here are the new 52-week lows among small caps:

Small-cap stocks closed slightly lower Tuesday, but did stage an impressive bounce off four-month lows. A massive slide in crude oil prices helped offset sluggish economic data, ongoing concerns about financial systemic risk and an overseas rout in equities that underscored a lack of confidence in U.S. instruments and sparked a historic slide in the U.S. dollar. At the end of a tumultuous session, the Russell 2000 (NYSE:IWM) fell 2.15, or 0.32%, to 662.35.

The dramatic recovery rally off fresh move lows in the Russell formed a decent bullish reversal pattern on daily charts while providing some immediate validation of the March bottom by showing there are investors who see value in that zone. The sudden influx of volatility also fits with bottoming action that was forged back in January and March when the market started to trade in frantic fashion, whipsawing both longs and shorts. Just how wild was today’s session in small caps? Some of the most astounding days of the last 12 months saw the Russell trade in a 20-handle range. Today’s range was more than 26 handles; the last time we saw sessions this crazy at major turning points was back in mid-March at the lows and back in late January (also at the lows).

Once again, small caps paced the rally over the Dow and S&P 500, which is a little bit of a caution sign since the Dow/Russell spread has been collapsing during the big overall market decline off the June highs. However, small caps weren’t the only leaders today as tech stocks were mildly firm, with the Nasdaq up slightly. Also, there was some rotation into the buy-side on pharmaceuticals, with the AMEX Pharmaceuticals Index rising 1.1%.

Crude oil futures collapsed some $6 dollars a barrel, the largest one-day decline in 17 years. In an interesting twist, crude oil traders blamed the slide on worries about the U.S. economy and the fragile stock market, while stock market traders pointed to the collapse in crude oil prices as the primary motivator for today’s recovery. “Regardless of which side is wagging the dog’s tail, the market is doing what it needs . . .

Small caps have been on a rollercoaster ride in Tuesday’s trading, falling in morning trading on soft economic data, a global rout in equities and a record-low U.S. dollar, but rebounding in afternoon trading after crude oil plunged more than $8. Continuing worries over the health of the American economy prompted a widespread sell-off in stocks, which sent oil dropping. At 1:10 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.5, or 0.98%, at 671.

In a highly volatile session, crude oil has fallen $8.14 from its intraday high to $137.04 a barrel in recent trading.

In testimony this morning, Federal Reserve Chairman Ben Bernanke told Congress that the U.S. economy is faced with "numerous difficulties.” Bernanke’s comments came on the heels of the Fed and Treasury’s announcement that it would financially support Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) if necessary. The Fed chairman said that the financial markets remain under “considerable stress” and that consumer spending was likely to be “restrained” in coming quarters.

On the inflation front, the PPI headline figure came in at plus 1.8%, which was well ahead of the forecast for a rise of 1.3% and the year-over-year figure was a sobering plus 9.2%, the largest rise since June 1981. On the consumer spending ledger, the news was also dour, with June retail sales up just 0.1%, well down from the median forecast for a rise of 0.4% as car sales notched their biggest drop in more than two years. Even when excluding autos, June sales were up just 0.8%, which also missed the forecast for a rise of 1%.

Retail sales in May were strong, and although this month’s figure missed the estimate, it was still a decent number. The problem is that May and June sales were temporarily boosted by government stimulus checks and the strength is seen as temporary from most analysts. “Despite recent strength, consumers are slowly and grudgingly succumbing to job losses, high energy prices, the housing meltdown and the financial market turmoil,” Steven Wood, chief economist with Insight Economics, said in an email.

The U.S. dollar was dumped en masse as global investors elected to steer clear of financial uncertainty. The greenback has recovered some losses during . . .

Washington Banking Co (Nasdaq:WBCO), Sonic Automotive Inc (Nasdaq:SAH) and BNC Bancorp (Nasdaq:BNCN) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Pyramid Oil Co (Nasdaq:PDO), Chimera Investment Corp (Nasdaq:CIM), Chimera Investment Corp (Nasdaq:CIM), Oneida Financial Corp (Nasdaq:ONFC), NB Capital Corp (Nasdaq:NBD) and Colony Bankcorp Inc (Nasdaq:CBAN).

Here are the biggest percentage losers among small caps:

Sonic Automotive Inc. (NYSE:SAH) is off 22% today after the auto retailer announced after Monday’s close that 2008 full-year earnings per share would be lower than expected. The company said earnings per share for the year ended Dec. 31 should be in the range of $1.65 to $1.85, down from a previous estimate of $2.35 to $2.50. Wall Street is expecting earnings of $2.16 per share. The company said it had lowered its earnings expectations based on the slowing of auto sales because of soaring gas prices and a weakened economy.

In today’s trading, shares of Sonic are at $8 at 10:27 a.m. ET, down $2.30 from Monday’s close.

Small-cap stocks fell hard this morning, pulled down by soft economic data, a global rout in equities, record lows in the U.S. dollar and a sobering outlook from central bank leaders. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 13.92, or 2.09%, at 650.59, the lowest level seen since March.

In Senate testimony this morning, Federal Reserve Chairman Ben Bernanke will address the economy and monetary policy. In a release of the advance text, Bernanke said that the financial markets remain under “considerable stress” and that consumer spending was likely to be “restrained” in coming quarters. The immediate response to the Bernanke text headlines was that stock markets extended the morning slide.

The stock market was already taking a beating in after-hours trading before a fresh batch of economic data came out on the weak side ahead of the opening. On the inflation front, the PPI headline figure came in at plus 1.8%, which was well ahead of the forecast for a rise of 1.3% and the year-over-year figure was a sobering plus 9.2%, the largest rise since June 1981. On the consumer spending ledger, the news was also dour, with June retail sales up just 0.1%, well down from the median forecast for a rise of 0.4% as car sales notched their biggest drop in more than two years. Even when excluding autos, June sales were up just 0.8%, which also missed the forecast for a rise of 1%.

Retail sales in May were strong, and although this month’s figure missed the estimate, it was still a decent number. The problem is that May and June sales were temporarily boosted by government stimulus checks and the strength is seen as temporary from most analysts. “Despite recent strength, consumers are slowly and grudgingly succumbing to job losses, high energy prices, the housing meltdown and the financial market turmoil,” Steven Wood, chief economist with Insight Economics, . . .

Small-cap stocks opened lower, slightly trimmed losses after the Consumer Confidence report came out at 10:00 a.m. ET, but then retreated right back to pre-release levels. The report showed an upward revision to the March report, which provided a brief bid to the market, but it was not enough to catch hold (at least immediately). At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.84, or 0.25%, at 723.53.

The Consumer Confidence report was pegged at 62.3 in April, which was in line with the forecast of 62, but the March number was revised upward to 65.9 versus 64.5. Still, the April figure was the lowest in five years.

Next on line … President Bush is slated to hold a press conference at 10:30 a.m. ET, where he is expected to talk about the economy.

The opening action was soft in line with overnight declines on a dip in European shares as Deutsche Bank posted its first quarterly loss in five years, and French tire company Michelin tumbled 9% on sloppy earnings.

Large-cap companies influencing trade this morning included drug company Merck & Co. (NYSE:MRK), which was down 7% on news that the FDA rejected a new cholesterol drug. From an overall stock market picture, the news had a somewhat muted impact, because it lifted Merck competitor Abbott Labs (NYSE:ABT) by 4%. In addition, Visa (NYSE:V) posted decent earnings ahead of the opening, but the financial firm was down 3% in early action.

The S&P 500 stalled approaching the 1,400 level on the latest push upward, and that key figure resistance will be closely watched through the rest of the week’s major economic events. In the Russell 2000, the market yesterday climbed . . .