Tag - Ard

The Russell 2000 (NYSE:IWM) unraveled in the final hour of trading as the weight of crumbling commodity stocks, a raft of sloppy profit reports and another batch of dreary economic data countered a sturdy performance in retail, homebuilder and bank stocks. Some of today’s small-cap gainers are ParkerVision (Nasdaq:PRKR), Tidelands Bancshares (Nasdaq:TDBK) and Insulet Corp. (Nasdaq:PODD).

Other Market Watch highlights today included:

• The weekly claims report this morning came in at 509,000, historically a big number but below the forecast of 540,000. 
• The four-week moving average on claims rose to 524,500 which was above 518,250 from last week and is at the highest point in 26 years.
• Today investors juggled a raft of disappointing profit reports against the bullish scenario from a fresh batch of global rate cuts.
• For 2008, the Russell is off 43%, while the Dow is down 37% and the S&P 500 is down 42%.
• Energy shares were a major drag on the market today, with crude oil prices tumbling to the lowest level in nearly four years. The Energy Select Sector SPDR Fund tumbled nearly 7%.
• Copper prices slumped to the lowest closing price in more than three years, losing 5% during U.S. trading.
• The Commodity Research Bureau Index of 19 physical markets slipped 3.7% and made new bear market lows. 
• Several firms today announced plans for sizable layoffs, a chilling thought heading into Friday’s monthly employment report.
• Homebuilder stocks, retailers and financial issues staged solid rallies . . .

Small-cap stocks unraveled in the final hour of trading as the weight of crumbling commodity stocks, a raft of sloppy profit reports and another batch of dreary economic data countered a sturdy performance in retail, homebuilder and bank stocks. The Russell 2000 (NYSE:IWM) closed down 14.23, or 3.14%, at 439.53, the sixth lowest daily close in more than five years. For 2008, the Russell is off 43%, while the Dow is down 37% and the S&P 500 is down 42%.

Energy shares were a major drag on the market today, with crude oil prices tumbling to the lowest level in nearly four years as energy traders fretted about a global recession which would continue to destroy the demand side of the equation. The Energy Select Sector SPDR Fund tumbled nearly 7%.

The story in commodities ran deeper than just the energy market, however. Copper prices – which are considered a key industrial metal and a proxy for economic health – slumped to the lowest closing price in more than three years, losing 5% during U.S. trading. The Commodity Research Bureau Index of 19 physical markets slipped 3.7% and made new bear market lows, a troubling development when stock market watchers are eagerly trying to find a bottom in equities. The CRB Index is now down 54% from the July peak and is at the lowest point in more than six years.

The market started out the day on shaky footing, as several prominent companies either missed profit projections or lowered guidance. In addition, several firms announced plans for sizable layoffs, a chilling thought heading into Friday’s monthly employment report. DuPont (NYSE:DD) missed the forecast badly, and said it would cut 2,500 jobs, while AT&T (NYSE:T) said it would slash 12,000 jobs. Those sobering jobs reductions came into the teeth of today’s weekly report on unemployment claims. Even though the weekly figure was below projections, the number of Americans who are out of work and forced to file for extended unemployment benefits rose to the highest point in 26 years.

Despite all the dreary news afloat, small-cap stocks actually spent much of the session in positive territory before the final hour meltdown. Homebuilder stocks, retailers and financial issues staged solid rallies most of the day, which . . .

United Rentals Inc (Nasdaq:URI), i2 Technologies Inc. (Nasdaq:ITWO) and Dynamex Inc. (Nasdaq:DDMX) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Diamond Foods Inc. (Nasdaq:DMND), AngioDynamics Inc. (Nasdaq:ANGO), Argon St Inc. (Nasdaq:STST), James River Coal Co. (Nasdaq:JRCC), Movado Group Inc. (Nasdaq:MOV) and Arena Resources Inc. (Nasdaq:ARD).

Small caps continue to trade sideways ahead of the Federal Reserve’s decision due out at 2:15 p.m. Today’s small-cap gainers are Spectra Pharma (Nasdaq:SPPI), Denny's (Nasdaq:DENN) and  Arena Resources (NYSE:ARD).

Other Market Watch highlights today included:

• Part of the rally in commodities was tied to a pullback in the U.S. dollar, as higher dollar values can hinder demand for goods priced in dollar terms.  
• Also on the commodities front, copper was sharply higher, sugar and coffee were up, grains were called sharply higher, and gold and silver were up overnight.
• Energy shares were a big part of Wednesday’s epic stock market rally and could be a firm element in play again today.  
• Crude oil futures were in rally mode this morning, climbing some $4 a barrel on hopes that all these global rate cuts would bolster demand and put a foundation on sinking prices.  
• Small-cap stocks chopped back and forth near steady levels in a relatively calm open, in anticipation of the upcoming FOMC news.

Small Cap Gainers:

• Spectrum Pharma soars after announcing collaboration with Allergan on drug for non-muscle invasive bladder cancer. See (Nasdaq:SPPI). 
• Denny's has vaulted 32% after being upgraded by a Merriman Curhan Ford to buy from neutral on good cost management in Q3  (Nasdaq:DENN) 
• Arena Resources gains after stating it will cut its cap-EX budget by 23% in 2008. See (NYSE:ARD).
• State Bancorp misses on Q3 earnings, yet shares are marginally higher. See (Nasdaq:STBC).


Small Cap Losers:

• Wright Express substantially lowers Q4 and full year guidance below the Street on fuel-price-related derivatives. See (NYSE:WXS).  
• CTS Corp. posts lower Q3 EPS, but EPS still beat the Street. Revenues declined from last year and missed estimates. See (NYSE:CTS).  
• KeyBanc Capital and Needham downgrade Ultimate Software to hold from buy. See (Nasdaq:ULTI).  
• VistaPrint plunges after cutting 2009 outlook, ThinkPanmure cuts rating to accumulate from buy. See (Nasdaq:VPRT).