Tag - Ahg

Small-cap stocks pushed sharply higher Tuesday, snapping a string of five consecutive losing sessions as investors nibbled on beaten stocks for bargains, while still favoring large companies amid concerns about the economy and a fragile consumer psyche. The Russell 2000 (NYSE:IWM) rallied 34.15, or 7.62%, to 482.55 for the second-largest one-day gain of the year and is now down 37% for 2008, while the Dow is off 32% and the S&P 500 down 36%.

Even though the market is still hammered for the year, today’s rally was a significant rise for the stock market, small caps included. The Russell slipped to fresh move lows this morning and seemingly had no safety net in sight for another 12 handles and then to make matters worse the Conference Board reported that consumer confidence plunged to 41-year lows. With two-thirds of the U.S. economy driven by consumer spending, a retrenched mood into peak holiday season purchasing activity is a troubling sign. But the Russell overcame those concerns, rejected new move lows and closed in higher territory, which is a solid bullish reversal signal.

Some of the renewed faith in the market could very well be tied to optimism ahead of the Federal Reserve’s announcement on interest rates Wednesday afternoon. Fed leaders began a two-day meeting today and will announce a rate cut Wednesday at 2:15 p.m. ET, which should create even cheaper money for those firms with access to the Fed’s discount and Fed funds windows and hopefully move the market closer to unclogging credit lines. Along that line of thought, inter-bank rates slipped again overnight for the twelfth straight trading day, which many hope is a sign that things are getting better in the ongoing credit crisis.

Another source of bullish inspiration likely stemmed from a rise in global equities overnight, just a day after a severe selling frenzy pushed Japan markets to 26-year lows and deepened the slide in other markets around the globe. Of course, . . .

Small-cap stocks were in rally mode Tuesday morning, taking flight in response to signs of a thaw in the credit market freeze, oversold conditions that brought out bargain hunters and a sizable jump in overseas equities markets. From an economic data perspective, today’s consumer confidence report and Case-Shiller Home Price Index releases were somber at best.  Today’s small-cap gainers are Apria Healthcare Group Inc. (NYSE:AHG), Syms Corp. (Nasdaq:SYMS) and Smith Micro Software (Nasdaq:SMSI).

Other Market Watch highlights today included:

• Crude oil prices were up about $1 a barrel this morning, helped along by a mild dip in the U.S. dollar against the euro.  
• European energy stocks also were in rally mode today, which should provide a lift to U.S. energy stocks as well.  
• After a global rout in equities Monday, investors came in today with relief that stocks in Asia and Europe were in rally mode instead of deepening the slide. 
• The dip in Libor rates also corresponds with the FOMC meeting, which began today and which should result in a rate cut Wednesday afternoon. 
• Small-cap stocks were in rally mode Tuesday morning, currently up 2% and taking flight in response to signs of a thaw in the credit market freeze.

Small Cap Gainers:

• Apria Healthcare Group Inc. is rallying 45%. Its stock will cease to trade publicly when a merger with The Blackstone Group is completed; shares will be converted into $21 cash. See (NYSE:AHG).  
• Syms Corp. is up 18%, trying to reverse Monday’s decline to fresh closing lows. See (Nasdaq:SYMS).
• Dell Selects Smith Micro Software to Deliver Universal Connection Management Software, up 5%. See (Nasdaq:SMSI).  
• Schnitzer Steel cautioned markets in early F09 have significantly weakened and it is uncertain when improvements may be seen. (Nasdaq:SCHN).  

Small Cap Losers:

• Ceradyne reports Q3 net income tumbles 40%, guides 2008 below the Street. See (Nasdaq:CRDN).  
• The nation’s largest rent-to-own operator Rent-A-Center reduces Q4 outlook on severity of financial crisis, down 33%. See (Nasdaq:RCII).  
• Martha Stewart misses analysts estimate by penny, issues Q4 and 08 revenue below Street. See (NYSE:MSO).
• Buffalo Wild Wings’ EPS fall short of Street view, expects sales and EPS growth in 25% range for full year, just shy of the Street.  (Nasdaq:BWLD).  

Small-cap stocks were in rally mode Tuesday morning, taking flight in response to signs of a thaw in the credit market freeze, oversold conditions that brought out bargain hunters and a sizable jump in overseas equities markets. From an economic data perspective, today’s consumer confidence report and Case-Shiller Home Price Index releases were somber at best. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was up 8.74, or 1.95%, at 457.14.

The consumer confidence report came in at 38, which was a new record low and way below the forecast of 52.0. The stock market pulled back modestly after the dour confidence report, but the damage wasn’t as severe as the startling number might have suggested.

Earlier this morning, the Case-Shiller Home Price Index came in at minus 16.6, which was in line with the forecast but still reflected a record decline in home prices. Since the report met the forecast and since the data is a little dated (for August prices) stock futures had a brief dip on the report, but then recovered into the opening.

Libor, or inter-bank lending rates continue to pull back, which investors see as a sign that credit lines are starting to unclog and that banks are developing trust in one another again. The dip in Libor rates also corresponds with the FOMC meeting, which began today and which should result in a rate cut Wednesday afternoon.

After a global rout in equities Monday, investors came in today with relief that stocks in Asia and Europe were in rally mode instead of deepening the slide. In Japan, the Nikkei index collapsed to 26-year lows Monday, but bounced some 6% overnight. Also, European shares rallied about 4% into the U.S. open, lifted in no small way by a bizarre run in Volkswagen shares, which soared some 80% and are up . . .