Tag - Amcp

Small-cap stocks edged higher Tuesday, supported by a pullback in crude oil prices, a firm tone in the U.S. dollar, a jump in tech stocks and modest buying from those who saw last week’s damage as overdone. Energy-inspired trades, both on the buy side and sell side, were also a prominent feature in stocks. The Russell 2000 (NYSE:IWM) closed up 10.28, or 1.42% at 734.38.

Despite an extended holiday weekend, trading decisions in equities continued to be directed by the same dominant element that was the focal point last week – gyrations in crude oil prices. When crude oil was higher before this morning’s opening, stocks were lower in pre-market trading, and when the energy market tumbled right before the opening, stocks started higher and held onto those gains throughout the session.

With crude oil taking a breather today, energy stocks became a profit-taking target, and one of the major drags on large-cap index products came from the energy sector. Exxon Mobil Corp. (NYSE:XOM) was off 0.8% and Chevron Corp. (NYSE:CVX) was down 1.2%. Another play on the crude oil decline came from airline stocks—a group that could use a break on the energy front after being hammered for months on end. The AMEX Airline Index was up 3.8% Tuesday, and small cap US Airways Group Inc. (NYSE:LCC) gained 4.5%, small comfort after collapsing 46% last week...

The Russell 2000 closed near opening levels, up slightly to 712.27, a gain of 1.62, or 0.23%. Look for support Thursday at 704, 700 and 695. Meanwhile, resistance comes in at 717, with the big test up at 725.

The Institute for Supply Management Non-Manufacturing survey this morning at 10:00 a.m. ET could spark a little volatility into the morning action, but most traders are already looking ahead to Friday’s big employment data, which could lead to uneven position-squaring type of action Thursday.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices fell today on more financial problems and fears of a consumer slowdown. The small-cap index dropped 15.56 points, or 2.16%, to 704.65. The Dow Jones Industrial Average (INDU) retreated 246.79 points, or 1.92%, to 12,606.30.

On a year-to-date basis, the Russell 2000 has lost 8.01%, while the Dow is off 4.96% and the S&P 500 has shed 4.59%.

The bears were in the driver’s seat today as news of more pain at major financial firms sparked worries that the subprime mortgage mess could take its toll on the American consumer.

Small-cap stocks opened with a drop and never looked up on news that Merrill Lynch & Co., Inc. (NYSE: MER), the world’s largest brokerage house, may incur $15 billion in losses from investments in securities backed by mortgage loans.

Mortgage lenders nationwide frequently packaged loans and sold them as securities to financial companies, and as a result both parties have suffered billions in losses as U.S. home prices started to stagnate in the second half of 2006 and many borrowers defaulted on their loans and went into foreclosure.

Adding to the gloom was New York-based credit card issuer American Express Co. (NYSE: AXP), which announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies.

The Russell 2000 (NYSE: IWM) is falling on news of worse-than-expected earnings forecasts from major financial players. At 1:26 p.m. ET, the small-cap index had retreated 8.53 points, or 1.18%, to 711.68. The Dow Jones Industrial Average (INDU) was down 207.20 points, or 1.61%, to 12,645.89.

The bears are dominating trading as stocks small and large are losing ground on news that the strain from the problems in the subprime mortgage sector has spread.

Merrill Lynch & Co., Inc. (NYSE: MER), the world’s largest brokerage house, reported before the start of trading that it may incur $15 billion in losses from investments in securities backed by mortgage loans.

That’s more than twice what the New York-based company had initially projected and an indicator that the problems stemming from the stagnation in the U.S. housing market continue to ripple through financial markets.

More bearish news came from luxury jewelry seller Tiffany & Co. (NYSE: TIF), which lowered its guidance for the fiscal year, and credit card issuer American Express Co. (NYSE: AXP), which announced a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies.

The American consumer is still spending money, but retail sales have slackened due to high energy costs.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling on more news of financial trouble stemming from the subprime meltdown.
 
At 10:33 a.m. ET, the small-cap index had lost 9.64 points, or 1.34%, to 710.57. The Dow Jones Industrial Average (INDU) was off 184.12 points, or 1.43%, to 12,668.97.

Stocks opened in negative territory following news that Merrill Lynch & Co., Inc. (NYSE: MER) may suffer $15 billion in losses from investments in securities backed by mortgage loans.

The loss, which is twice what the New York-based investment bank had initially estimated, is an unpleasant reminder of how shockwaves from the stagnating U.S. housing market continue to ripple through financial markets.

There was more bearish news from the financial sector as credit card issuer American Express Co. (NYSE: AXP), announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies. The company said that it now expects fourth-quarter earnings below the level a year earlier.

Many mortgage lenders nationwide have taken a hit and even declared bankruptcy as U.S. home prices have stagnated and many borrowers have defaulted on their loans and gone into foreclosure. Lenders frequently packaged loans and sold them as securities to financial companies, which have in turn also incurred billions in losses.

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will open with a decline on news of more mortgage losses.

Small-cap stocks are set for a bearish opening following news that Merrill Lynch & Co., Inc. (NYSE: MER) may suffer $15 billion in losses from investments in securities backed by mortgage loans. The loss is almost twice what the New York-based investment bank had initially estimated and an unpleasant reminder of how shockwaves from the stagnating U.S. housing market continue to ripple through financial markets.

Providing more unpleasant news is credit card issuer American Express Co. (NYSE: AXP), which announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies. The company said that it now expects fourth-quarter earnings below the level a year earlier.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• AmCOMP Inc. (AMCP), up 41% on news it will be acquired by Employers Holdings, Inc. (NYSE: EIG).
• Columbia Bancorp (CBBO), up 20%.
• USANA Health Sciences, Inc. (USNA), up 16% on news an informal inquiry by the U.S. Securities and Exchange Commission has ended with no action.

Biggest percentage losers:

• Cadence Pharmaceuticals, Inc. (CADX), down 47% on news a clinical trial did not meet its primary endpoint.
• Opnext, Inc. (OPXT), down 14% on news that it expects fiscal third-quarter sales below Wall Street’s projections.
• Wavecom S.A. (WVCM), down 5%.