Tag - Chs

Small caps remain mostly flat mid-session, as Fed Chairman Bernanke, Treasury Secretary Paulson and SEC Chairman Cox continue to testify before Congress on the $700 billion mortgage bailout plan.

While the Russell remains flat flickering out of the red and green, the general market is higher. At 12:12 p.m. ET the Russell 2000 (NYSE:IWM) was down 2.57, or 0.36%, to 717.87, while the Dow was up 57.59, or 0.52%, to 11,073.

Bernanke, Paulson and Cox all began testifying before the Senate Banking Committee at 9:30 a.m. ET. Mr. Bernanki and Mr. Paulson continue to emphasize the urgency of passing this plan, as well as outline details of the plan and dire consequences that could result should Congress opt not to pass the bailout.

“Over these past days, it has become clear that there is bipartisan consensus for an urgent legislative solution,” Mr. Paulson said in Congressional testimony. “We need to build upon this spirit to enact this bill quickly and cleanly, and avoid slowing it down with other provisions that are unrelated or don’t have broad support.”

The plan, in which the government would take ownership of all toxic mortgages from affected banks’ balance sheets, effectively rids banks of the poison that has thwarted their operation and enables them to begin shoring up their financial positions to begin lending again. Recent reception has been hostile by certain members of congress. The two most contentious areas include limiting executive compensation and amending the bankruptcy law to allow judges to change the terms of the toxic mortgages. One area of agreement is broader congressional oversight and taking equity stakes in firms which partake in the rescue efforts.

If this plan were accepted the toxic mortgages would be gone from banks’ books; however, the country must still grapple with a grim housing market with a glut of inventory, a slowing global economy, shaky corporate earnings and . . .

Shares of Chico’s (NYSE:CHS) are down some 14% after PiperJaffrary downgraded the women’s retailer to “neutral” from “buy” on account of weak traffic and higher discounts.

Shares lost 14%, or $0.98, to $5.98 midday. For detailed price information and news stories on Chico’s, click CHS.

SI International Inc. (Nasdaq:SINT), Talbots Inc. (Nasdaq:TLB) and Borders Group Inc. (Nasdaq:BGP) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Northern Dynasty Minerals Ltd. (Nasdaq:NAK), Quiksilver Inc. (Nasdaq:ZQK), Midwest Banc Holdings Inc. (Nasdaq:MBHI), TomoTherapy Inc. (Nasdaq:TOMO), Community Bankshares Indiana Inc. (Nasdaq:CBIN) and Chico's FAS Inc. (Nasdaq:CHS).

Here are the biggest percentage gainers among small caps:

Small-cap stocks were modestly higher in choppy morning trade, as investors juggle several cross-currents, including a sudden jump in crude oil prices and a fresh batch of economic data that seemed slightly better than feared. At 10:06 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.49, or 0.48% at 724.03.

New Home Sales were pegged at an annual rate of 515,000 units, which was below the 530,000 forecast. The single-family home sales rate for June was the lowest since September 1991. Meanwhile, Consumer Confidence came in well above the forecast, with the headline figure at 56.9, compared with the projection of 53. The U.S. dollar edged slightly higher after the confidence report, but did not take out the overnight high against the euro.

The Case-Shiller Home Price Index was slightly better than the forecast, coming in at minus 15.9%, compared with the projection of minus 16.2%. In addition, the velocity of declines is slowing and there were some pockets that edged higher, which will foster some hope of a bottom for the beleaguered housing sector. Still, the report shows that home prices in metropolitan areas continue to fall at a record annual pace.

The U.S. dollar climbed to new move highs in overnight trading, pulling to the highest point since February against the euro. After this morning’s run of economic data, the dollar remained firm, which helped pull money into U.S. equities. In addition, the yield on ten-year notes and bonds was higher, suggesting money flow into stocks versus fixed income products.

Crude oil bounced about 30 minutes ahead of the U.S. stock market opening, boosted by concerns that Hurricane Gustav could trek toward key production areas in the Gulf of Mexico. The Gulf harbors about 25% of U.S. crude production and some 15% of natural gas production. Crude oil prices climbed back above $117 a barrel, . . .