Tag - Cia

Ocwen Financial Corp. (Nasdaq:OCN), Optimer Pharmaceuticals Inc. (Nasdaq:OPTR) and Life Partners Holdings Inc. (Nasdaq:LPHI) are among the new 52-week highs in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Lannett Co Inc. (Nasdaq:LCI), Village Super Market Inc. (Nasdaq:VLGEA), Citizens Inc. (Nasdaq:CIA), SXC Health Solutions Corp. (Nasdaq:SXCI), Hot Topic, Inc. (Nasdaq:HOTT) and American Bancorp of New Jersey Inc. (Nasdaq:ABNJ).

The Russell 2000 (NYSE: IWM) is falling on news of a rise in weekly U.S. jobless claims and despite higher-than-expected third-quarter economic growth.

At 10:43 a.m. ET, the small-cap index was missing 2.73 points, or 0.35%, to 767.31. The Dow Jones Industrial Average (INDU) was down 22.35 points, or 0.17%, to 13,267.10.

The U.S. economy grew at an impressive 4.9% annual rate during the third quarter of 2007, the Commerce Department reported before the opening. That’s an upward revision from the preliminary figure of 3.9%.

Economists were expecting a slightly more modest upward adjustment to a rate of 4.8%.

The fast rate of growth was largely due to a surge in exports, which rose 18.9% instead of the initially reported
16.2%. Imports increased 4.3%, while the preliminary numbers had forecasted a rise of 5.2%.

However, consumer spending increased a less-than-expected 2.7%, a sign that American consumers are getting tired in the face of stagnating home prices and high energy costs. Consumption is about 70% of gross domestic product.

Residential fixed investment, which includes housing, fell 19.7%, reflecting the ongoing slump in the housing sector.

Despite the economy’s strong third-quarter performance, the highest quarterly pace since 2003, a sharp slowdown is still in the cards.

The U.S. Labor Department reported before the start of trading that jobless claims for the week ended Nov. 24 rose 23,000 to 352,000, the highest number since February. The revised figure for a week earlier is 329,000.

The Russell 2000 (NYSE: IWM) led the way down as the major U.S. indices fell on news of Merrill Lynch’s third-quarter loss and a sharp drop in sales of existing U.S. homes. The small-cap index lost 7.68 points, or 0.94%, to 810.85. The Dow Jones Industrial Average (INDU) let go 0.98 points, or 0.01%, to 13,675.25.

On a year-to-date basis, the Russell 2000 has increased 2.98%, while the Dow has added 9.63% and the S&P 500 has advanced 7.01%.

Small-cap futures were pointing lower and stocks fell out of the gate on news that Merrill Lynch & Co Inc. (NYSE: MER) suffered its first quarterly loss in six years due to $7.9 billion in write-downs.

The world’s largest brokerage house reported a third-quarter net loss of $2.24 billion, or $2.82 per share, below its previous forecast and analysts’ projections. Merrill Lynch blamed the dismal result on being overly exposed to securities backed by subprime mortgages.

The news came as a nasty reminder of the far-reaching effects of the subprime meltdown, which came about as a result of the ongoing slump in the U.S. housing sector. Many mortgage lenders nationwide went bankrupt in the past months following a wave of foreclosures by cash-strapped homeowners.

And the housing sector continues to agonize, at least according to numbers released today by the National Association of Realtors.

The trade association reported that sales of existing U.S. homes fell 8% in September to an annual pace of 5.04 million. That’s the lowest level since the measure was introduced in 1999. The pace of sales in August was a downwardly revised 5.48 million.

Transmeta Corp. (Nasdaq: TMTA), Appliance Recycling Centers of America (Nasdaq: ARCI) and Image Sensing Systems, Inc. (Nasdaq: ISNS) are among the biggest percentage gainers in Wednesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

The Russell 2000 (NYSE: IWM) is falling following news of a quarterly loss at Merrill Lynch and a decline in existing home sales.

At 10:55 a.m. ET, the small-cap index had lost 18.28 points, or 2.23%, to 800.25. The Dow Jones Industrial Average (INDU) was down 137.63 points, or 1.01%, to 13,538.60.

New York-based Merrill Lynch & Co Inc. (NYSE: MER) announced before the opening that it suffered its first quarterly loss in six years due to $7.9 billion in write-downs, primarily due to bets made on mortgages and leveraged loans.

Merrill Lynch reported a third-quarter net loss of $2.24 billion, or $2.82 per share, far worse than its forecast on Oct. 5 of a loss of up to $0.50 per share. Wall Street was expecting a loss of $0.45 per share.

That’s a sign that the contagion from the meltdown in the subprime mortgage sector remains active and capable of spreading shockwaves through the financial system. Chairman and CEO Stan O’Neal admitted that Merrill Lynch took a hit because it was too exposed to subprime, according to news reports.

Contributing to the bearish mood is news that U.S. sales of existing homes fell 8% in September, according to the National Association of Realtors. That’s an annual pace of 5.04 million, the lowest since NAR began keeping statistics in 1999.