Tag - Cal

Stocks are trading higher this afternoon as earnings reports from industrial and technology companies have buoyed investor sentiment.

At 2:00 pm ET, the Russell 2000 (NYSE:IWM) is up 1%, while the Dow is slightly lower at 0.19%, and the S&P 500 is trending 0.30% higher.

Small-cap Continental Airlines Inc. (NYSE:CAL) rose $0.58, or 3.9%, to $15.58 today despite reporting this morning that it lost $136 million in the first quarter as traffic fell and business travelers saved money by moving from first-class to the coach cabin.

Other small caps moving higher today include RC2 Corporation (Nasdaq:RCRC), up a whopping 45% after posting a surprise Q1 profit and guiding above estimates. Patriot National Bancorp (Nasdaq:PNBK) is up 35% on very low volume, and small-cap retailer Destination Maternity Corp. (Nasdaq:DEST) is up a stunning 32% after reporting its Q2 earnings.

*****I received a very topical question from a SCI Daily reader …

Do you think that Obama is a legitimate "for the ordinary people" real deal, or is he just another cleverly marketed pretty face representing the interests of the ruling class? If you prefer call them the rich, the wealthy, the owners, the bosses … whatever works for you. In the end they are the same people. I deliberately did not label them as capitalists because I believe that they are corrupt capitalists, scamming the game in their favor even though their performance is proven to be mediocre. In real capitalism, ability and performance matter. As in, let the failed banks, brokerages, etc fail and allow the strong to take them over. When I read about these recent government led bailouts it becomes clear that we have been set up and conned into taking the hit for the unworthy managers, making it possible - inevitable - for the rich to triumph regardless of their audacious arrogance and incompetence.  This is not what I understand capitalism to be - and it stinks!

I have to admit, I started to get sucked in by the President’s charm the day he stood on the steps of the Capitol and told us of the sacrifices and hard work that lay ahead for Americans.

I also must now admit that I am extremely disappointed in how President Obama he has dealt with continuing problems on Wall Street. He has repeatedly shown that he is unwilling to take a hard line with the likes of AIG, Citigroup, Goldman Sachs and all the rest.

When the bankers can dictate policy, America is in serious trouble. That’s what got us to where we are now and quite frankly, President Obama doesn’t seem to be changing this situation, for whatever reason, and you’re right: it stinks.

Wall Street has essentially robbed America. And now Washington is driving the getaway car. Washington is essentially helping Wall Street with . . .

Small-cap stocks pushed higher into mid-session, supported by gains in airlines, retailers and energy stocks. Small-caps were firm relative to large-cap stocks which were pulled down by big financials and tech companies. At 12:45 p.m. ET, the Russell 2000 (NYSE:IWM) was up 3.64, or 0.80%, at 460.16.

The market was sharply divided today, with strong gains seen for several sectors, but big losses offsetting in other sectors, which had cumulative effect of keeping index movement relatively stable. Financial shares continue to be a drag on large-cap indices, with the Financial SPDR Fund off about 2%, with Bank of America (NYSE:BAC) and Well Fargo & Co. (NYSE:WFC) both down in the 2% range.

Among airline stocks, UAL Corp. (Nasdaq:UAUA) was up 7% while US Airways Group Inc. (NYSE:LCC) was up 5% and Continental Airlines Inc. (NYSE:CAL) was up 4%. Crude oil prices pulled higher amid talk of OPEC cuts and the hijacking of a big Saudi oil freighter, but the move was relatively tame and not enough to spook airline stocks. The U.S. dollar was down more than 1% against the euro, which also helped the tone in commodity stocks. General Motors Corp. (NYSE:GM) was up about 11% as the automaker continues to benefit from expectations that the U.S. government will extend a helping hand to carmakers.

The bearish story on the technology front today was supposed to be Dell Inc. (Nasdasq:DELL) following an analyst downgrade, but the PC-maker was actually up 1% at midday, so the woes in tech stocks were linked to other concerns.

Individual small caps in rally mode today included Targanta Therapeutics Corp. (Nasdaq:TARG), which jumped 34% on news that an FDA committee will review the firm’s new application for skin infections. CTS Corp. (NYSE:CTS) rallied 22% as the electronics manufacturing firm climbs out of the 52-week lows set during last week’s slide. China Southern Airlines Co. Ltd. (NYSE:ZNH) was up 16%, bolstered by reports that Chinese airlines will seek government assistance. Theravance . . .

Small-cap stocks went into freefall mode Wednesday, burdened by new plans for the troubled asset relief program (TARP), ongoing worries about corporate profitability, money flow out of equities into credit markets, further downside probing in commodities to 5-year lows and renewed concerns about consumer spending in a difficult economic environment. The Russell 2000 (NYSE:IWM) closed down 29.49, or 6.12% at 452.80, the second-lowest daily close in more than five years. For 2008, the Russell is now down 41%, while the Dow is off 38% and the S&P 500 is down 42%.

We’ve all become somewhat numb to mind-boggling daily volatility since the collapse kicked into gear, but to give some perspective, if you went back before the stock market crash began in mid-September, today’s slide would have been the largest one-day swoon of the year. Including action since mid-September, this was the eighth session sporting a loss of 5% or more.

The market was already in a fragile frame of mind this morning after Best Buy Co. Inc. (NYSE:BBY) lowered its outlook, which stirred worries about consumer spending heading toward the key holiday season. With two-thirds of the U.S. economy driven by consumer spending, a picture of rising unemployment and a dreary outlook for next year make for a troubling brew. BBY shares lost 8% on the day, while the S&P Retail Index was off 5.7%.

Then after the BBY scare, investor confidence seemed to be shaken even more by the Treasury Department’s decision to scrap the original rescue plans of using $700 billion in TARP funds to buy up toxic debt and instead divert money into more capital injections. Those investor concerns appear to be two-fold: first, there is a perception that the government still is bouncing back and forth trying to put out fires instead of having a deliberate plan of attack to help restore financial solvency. Second, there is a chance that if the government funnels billions of dollars into these financial firms it will dilute share-holder equity. The PHLX KBW Banking Index was off 6.1%.

When the TARP was first approved by Congress back on Oct. 3, the Russell was at 619.40. After putting $350 billion to “work” to rescue the market out of the credit crisis, the Russell is now at 452.80. Clearly, there is still work to be done. And the longer the market struggles the more likely it is that public frustration over . . .

Small-cap stocks are expected to open near steady levels as investors mull over the big two-session advance in prices and short-term longs book profits. The Russell 2000 (NYSE:IWM) was basically unchanged overnight, and large-cap futures indices were narrowly mixed.

The international trade report showed that the U.S. deficit narrowed to minus 56.7 billion, which was better than the forecast for a deficit of minus 61.5 billion, helped by a weaker U.S. currency, which makes exports of U.S. goods more attractive.

The dollar was narrowly mixed right before the trade report, and firmed against the euro after the data. The market will often see big moves in foreign currency markets on the trade report, but the action was quite tame after today’s release.

Stock markets around the world were mixed overnight, with Asia shares primarily lower. Stocks in Russia jumped 3%, but shares in Japan were down 0.9%, Hong Kong off 1%, China down 0.5%, India down 1.8%, Taiwan down 0.4%, Singapore down 0.3% and Australia up 0.5%.

Crude oil prices slipped to three-month lows overnight, but recouped a $1-a-barrel decline heading into the U.S. stock market open, bouncing back from $113 to $114. Some of the overnight selling was tied to news that Russian officials ordered . . .

After a rocky morning for small caps, stocks edged higher, lifted by plunging crude prices and gains in consumer and retail companies. At 12:46 p.m. ET, the Russell 2000 (NYSE:IWM) was up 8.85, or 1.27%, at 706.48.

The price of crude oil sank $5 per barrel to $126 at mid-session to a six-week low. Weather forecasts predicted Tropical Storm Dolly will likely miss oil fields and refineries along the Gulf Coast. Previous reports warned the storm would come close to the area, possibly disrupting oil production.

Airline companies jumped on the news with Continental Airlines Inc. (NYSE:CAL) and JetBlue Airways Corporation (Nasdaq:JBLU) soaring more than 20% as the fuel costs showed the first signs of decreasing.

Financial stocks took a hit today after the Congressional Budget Office said it could cost the government as much as $25 billion to help troubled Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). Congress will vote this week on whether Fannie and Freddie will receive government assistance. U.S. Treasury Secretary Henry Paulson said today that action must be taken to boost consumer confidence while strengthening the housing market.

Mortgage losses brought down Wachovia Corporation (NYSE:WB), which posted an unexpected second-quarter loss today of $8.9 billion and announced plans to eliminate 6,350 workers. Investors took solace in the fact that $6.1 billion of that was from a goodwill impairment charge.

Among broad market sectors on the rise are airline transportation; recreational activities; accident and health insurance; and home improvement retailers. Heading downward are coal; oil and gas operations; computer hardware; and computer storage devices.

Small caps leading the pack include Bluegreen Corporation (NYSE:BXG), which is up 90% today’s trading after announcing ahead of the opening its plans . . .

Continental Airlines Inc. (NYSE:CAL) is up 3% in pre-market trading today, even after the airline’s before-the-open report of a quarterly loss. For the second quarter of 2008, Continental Airlines reported a net loss of $3 million, or $0.03 per share, compared with a profit of $228 million, or $2.03 per share, for the same quarter a year earlier. Despite swinging to a quarterly loss, Continental Airlines beat analyst estimates; Wall Street was expecting a loss of $0.49 per share. Quarterly revenue grew to $4 billion, up about 9% from the quarter a year earlier.

The Houston-based company said it was hit hard by the slowing economy, fewer travelers and the soaring price of fuel. During the past week, however, crude oil has tumbled down from the record highs it achieved earlier this month.

In today’s pre-market trading, shares of Continental Airlines are at $9.45, up $0.26 from Wednesday’s close.

E Com Ventures Inc (Nasdaq:ECMV), InterVoice Inc (Nasdaq:INTV) and First Midwest Bancorp Inc (Nasdaq:FMBI) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: VIST Financial Corp (Nasdaq:VIST), MHI Hospitality Corp (Nasdaq:MDH), Continental Airlines Inc (Nasdaq:CAL), National Penn Bancshares Inc (Nasdaq:NPBC), Oneida Financial Corp (Nasdaq:ONFC) and Camco Financial Corp (Nasdaq:CAFI).

Here are the biggest percentage gainers among small caps: 

DineEquity Inc (Nasdaq:DIN), GSI Group Inc (Nasdaq:GSIG) and Norwood Financial Corp (Nasdaq:NWFL) are among the new 52-week lows in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Gateway Financial Holdings Inc (Nasdaq:GBTS), Webster Financial Corp (Nasdaq:WBS), Continental Airlines Inc (Nasdaq:CAL), Alaska Air Group Inc (Nasdaq:ALK), BGC Partners Inc (Nasdaq:BGCP) and LSB Corp (Nasdaq:LSBX).

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

Community Valley Bancorp (CA) (Nasdaq:CVLL), Pzena Investment Management Inc (Nasdaq:PZN) and DineEquity Inc (Nasdaq:DIN) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Gateway Financial Holdings Inc (Nasdaq:GBTS), Webster Financial Corp (Nasdaq:WBS), Alaska Air Group Inc (Nasdaq:ALK), FCStone Group, Inc. (Nasdaq:FCSX), Pacific Sunwear of California Inc (Nasdaq:PSUN) and Continental Airlines Inc (Nasdaq:CAL).

Here are the biggest percentage losers among small caps:

Small-cap stocks plunged early Friday as a downward spiral developed among government-sponsored mortgage firms and record high crude oil prices sent equity bears on a stampede. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was down 3.09, or 0.46%, at 667.35, an ugly start to the day, but well off the initial morning lows.

The Michigan sentiment survey came in better-than-expected, with the headline figure at 56.6, compared with the median forecast of 55.5. The stock market appeared to bounce mildly off the lows in conjunction with the Michigan figures, but the market was already trying to mount a recovery move even before the data came out.

Fannie Mae (NYSE:FNM) collapsed some 40% shortly after the open, and similar losses were pinned on Freddie Mac (NYSE:FRE) on huge trading volume. Selling fury was fueled overnight by an article in the New York Times suggesting the government was considering a takeover of the embattled mortgage lending giants as the housing slump and credit crisis wallop the firms.

The freefall in GSEs spilled over to the rest of the financial sector, with large caps such as Wachovia Corp. (NYSE:WB) down 9%, Merrill Lynch down 6% and Lehman Bros. (NYSE:LEH) off 17%. Small-cap index products are peppered with regional and small banks, and they often have even more trouble gaining access to credit than the bigger banks, so heightened fears on the credit crunch could slice into the outperformance seen in the Russell 2000 versus large-cap index products (although in early trade, losses in the Russell 2000 were on a slower pace than its big-cap brethren).

“Retail and credit issues sparked selling yesterday and remain a concern today. Volatility is high right now. I think FNM and FRE are vulnerable to further losses, but the market is thinking that the government will aid the GSEs in some way and keep the financial system whole,” Nick Kalivas, vice president of financial research with MF Global, told SmallCapInvestor.com in an email interview.

“I think earnings news should be the main focus and Thursday’s DOW/ROH deal was bullish, but the credit environment is so uncertain and the market does not see the financing available for a host of deals. The market is cheap based on the M&A, but there may not be the liquidity or money to actually push it higher. That . . .

Small-cap stocks collapsed again Wednesday, unable to escape the glare of soaring energy prices that crimp consumer spending, raise business input costs and slice away corporate margins. The Russell 2000 (NYSE:IWM) shed 19.25, or 2.78%, to 672.34. This marked the fourth largest one-day decline of the year and the 15th decline in 2008 of 2% or more. In the end, small caps posted the lowest daily close since March 19.

Crude oil prices shot to new record highs after the weekly inventory report showed that crude stocks slipped below 300 million barrels for the first time since January. The prospect of tight stocks into a holiday weekend amid saber rattling between Israel and Iran ensured that a risk premium be priced into energy markets. In addition, spot gas prices jumped to a 30-month high, and it appears no commodity market will go without its turn in the sun. The Commodity Research Bureau Index of 19 commodity markets shot to yet another record high and is up 29% in 2008. In addition, new all-time highs were set in the small-cap commodity fund iPath GSCI Total Return Index, which is heavily weighted toward energy.

The dreary close in small caps was a far cry from this morning’s opening when rising European bank shares and talk that the capital-raising crisis had peaked fueled an opening bounce in stocks. That opening rise looked like a nice carryover sign of power in the shadow of Tuesday’s big recovery rally, but the resumption of selling fury today effectively clipped short any bottoming signs that may have been building off the bounce.

While soaring energy prices rightly gathered the lion’s share of attention during today’s collapse, bullish investors may have been scared into the cellar by this morning’s ADP National Employment Report, which showed a decline in payrolls of 79,000, the largest figure since November 2002. Although the correlation between ADP and the official Labor Department report has been unraveling of late, it’s still a scary figure . . .

Small-caps stocks opened higher, but were unable to sustain the bid and slipped into the red shortly after the open. Prices were underpinned by a bounce in European banking stocks as Deutsche Bank rallied after saying they do not need to raise capital, and by analyst comments that the worst is over for European banks on the capital front. However, that support was countered by soft data on the ADP jobs report. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.47, or 0.07%, at 691.12.

The ADP National Employment Report showed a decline of 79,000 in payrolls, which marked the largest decline since November 2002. In addition, ADP revised last month’s gain downward to 25,000 from 40,000. When the ADP report was released about 8:15 a.m. ET, the news sparked a bounce in Treasury futures, trimmed overnight gains in the dollar against the yen and sparked a pullback in overnight gains in stock index futures. The weak ADP figures were troubling ahead of the big monthly employment report slated for Thursday morning.

Analysts at Goldman Sachs cautioned that the correlation between the ADP report and the actual Labor Department monthly employment release has not been that reliable of late. Goldman said that from January 2000 through October 2007, the ADP served up a much tighter projection of the jobs report, but since then the standard deviation has swelled.

Factory Orders came out at 10:00 a.m. ET, with the headline figure coming in at 0.6%, which was just slightly above the median forecast of 0.5%. The market had little reaction to the factory orders data.

Earlier this morning, the MBA mortgage application survey rose 3.6%, but . . .

Small-cap stocks extended the recent slide Wednesday, as rising crude oil prices, ongoing credit crunch worries and a soft “Beige Book” report on economic activity took a toll. The Russell 2000 (NYSE:IWM) shed 14.74, or 2.01%, to 717.88, the lowest daily close since May 7 and the fourth consecutive close below opening levels, which shows that the bears are winning all the intraday skirmishes lately.

The Russell also closed below the 20-day moving average for the third consecutive session on lower closes, something that has not happened since March. The 20-day moving average is often watched as a short-term trend proxy and the last two times we saw the market below that line three consecutive periods, it presaged a nasty move lower. In addition, late in the day the Russell popped through key chart support at 720.50. Decisive action below that support would suggest a technical breakdown of the recent recovery move, and carries a downside target to 690, which makes action Thursday even more important to gauge the power of this pullback.

Crude oil prices shot $7 dollars a barrel higher Wednesday as the weekly stocks report reflected a drop in U.S. inventories for the fourth consecutive week. Crude oil prices jumped to more than $138 dollars, closing in on last week’s record high that approached $140. Elsewhere in the commodities arena, corn, soybeans and wheat soared up their daily trading limits today amid flooding in the heartland. Corn prices have been making record highs, which means that consumers’ wallets are taking a hit at the gas pump and then again at the grocery store. The iPath GSCI Total Return structured note fund reversed two days of losses to notch new record highs today, reflecting the broad advance in the price of physical goods. The Commodity Research Bureau Index of 19 markets also made new record highs today. A slide in the U.S. dollar also contributed to the rise in crude oil and other commodities, with the greenback down 0.4% against the yen, and off about 0.6% versus the . . .

Selling enthusiasm swamped small-cap shares when the afternoon release of FOMC minutes suggested a lower growth forecast, inflation jitters and an April rate cut that was a close call. The Russell 2000 (NYSE:IWM) lost 8.54, or 1.16%, to 727.11. It was the fourth consecutive session in which small caps closed below the opening, something that hasn’t happened since January.

Small caps spent much of the day trying to hold onto tepid gains in the face of red ink in large-cap index products and yet another spike in crude oil prices. However, the selling dam burst after the release of the FOMC minutes. In addition to suggesting that the economy was on a slower recovery path, the Federal Reserve’s policy-making board basically did everything but say outright that rate cuts were on hold right now because of inflation issues.

It wasn’t hard to look for signs of fresh price inflation today. Within the energy arena, crude oil prices jumped to more than $133 dollars a barrel when a weekly inventory report showed a surprising dip in crude oil stockpiles versus expectations for an increase in supplies. With pump prices starting to move north of $4 dollars a gallon in some metropolitan areas, consumer’s discretionary spending money is getting even more pinched, which could stall any burgeoning economic recovery.

The sting of higher crude oil prices wasn’t just felt in consumer pocketbooks today. Airline stocks were shot down in stunning fashion, with the Amex Airline Index sinking more than 12% to fresh 52-week lows. At this time last summer, the Airline Index was trading in the $50 range … today, the price is below $19. Among airline stocks, small-capper US Airways Group (NYSE:LCC) fell 17% to new 52-week lows . . .

ExpressJet Holdings, Inc. (NYSE: XJT) shares jumped after the operator of regional flights said it may go private and investors hoped for a renewed contract with Continental Airlines, Inc. (NYSE: CAL). Before the opening, the firm reported a net loss of $22.3 million, or $0.41 per share, below analyst expecting a loss of $0.25 per share and compared with a profit of $22.7 million, or $0.38 per share, a year earlier.

"We have a lot of interest in that. We've got a lot of folks that are contacting us, and we're having some of those conversations," CEO Jim Ream said during a conference call in response to an analyst’s question about going private. "That may in fact be something that the board considers."

Operating revenues rose slightly to $441.3 million, above analyst estimates of $407.3 million and compared with $428.6 million during the same period of 2006.

"We finished our transition of aircraft during the third quarter and continue to be pleased with how well the ExpressJet employees did in delivering the very best customer service,” CEO Jim Ream said in a statement. “The quarter reflects the anticipated market development challenges associated with all of the new flying and the operational inefficiencies that come from a very rapid deployment into all of our new markets.”

Houston-based ExpressJet’s were negatively impacted after Continental canceled a capacity purchase agreement the company had with 69 of its aircraft. ExpressJet was spun off from Continental Airlines in 2002.

Shares of XJT closed up 16.28%, or $0.49, at $3.50. Over the last 52 weeks, shares have ranged from $2.65 to $9.61.

Over the past several years, civil aviation has seen more than its fair share of turbulence. In the wake of the 9/11 attacks, terrorism fears crippled the industry, leaving domestic air travel virtually grounded and sending most airlines into a tailspin. An economic downturn, coupled with Iraq uncertainties that caused a surge in oil prices, didn't help matters.

Quickly losing altitude, the nation's largest carriers scrambled to gain stability: United Airlines (Nasdaq: UAUA), Delta Air Lines (NYSE: DAL), Northwest Airlines (NYSE: NWA) and US Airways (NYSE: LCC) sought bankruptcy protection. Continental Airlines (NYSE: CAL) and American Airlines (NYSE: AMR) avoided Chapter 11 reorganization but raised fares, eliminated jobs and cut employee wages and benefits.
 
With the fear of flying having receded and the economy rebounding, the big boys are in their best shape in years. But now there is a new challenge to contend with: low-cost competition. Discount carriers like Southwest Airlines (NYSE: LUV), JetBlue (Nasdaq: JBLU) and Midwest Express (AMEX: MEH) have siphoned away passengers from full-service airlines. 
 
One high-growth small cap, Las Vegas-based Allegiant Travel Company (Nasdaq: ALGT), is flying high, while carving out a cut-rate niche at underserved airports. Allegiant Air flies budget-conscious travelers from about 50 small U.S. cities to world-class leisure destinations such as Las Vegas, Nev., Phoenix, Ariz., Orlando, Fla., Fort Lauderdale, Fla. and Tampa/St. Petersburg, Fla.

Allegiant is a low-fare outfit which has a fleet of MD-80 series jets (with comfortable seating and spacious overhead luggage bins), offers ticketless "open seating" and prides itself on providing superior customer service. The company also sells bundled hotel rooms, rental cars and other travel-related services through Allegiant's other subsidiary, Allegiant Vacations, to drive ancillary revenues.