Tag - Drbn

Stocks slid in the final hour of trading, finally capsizing at closing on news that tech bellwether Hewlett-Packard (NYSE:HP) is scaling back its 2009 forecast.

The Russell 2000 (NYSE:IWM) tumbled 6.47, or 1.53%, to 416.71, while the S&P 500 toppled 1.2% to 778.94, and the Dow fell 89 points, or 1.19%, to 7,466 — the lowest level since 2002. The Dow had dropped as low as 7,447.55 during the session.

Thursday started off on poor footing, with back to back economic data releases that solidified the state of the current economic climate. Before the opening the Labor Department released a report of initial jobless benefit claims, did little to inspire investor confidence that the employment situation in the United States was getting any better. The number of Americans filing new claims for unemployment held steady last week at 627,000, versus forecasts for a drop to 620,000, but the number of Americans continuing to file jobless claims rose to a record of nearly 5 million.

Also out before the opening was monthly data on wholesale prices, which increased more than expected last month, due in part to higher energy costs. The Producer Price Index rose 0.8% after falling 1.9% in December; economists predicted it would rise 0.3%. The Philadelphia Fed index, a reading on manufacturing, fell to minus 41.3 from minus 24.3 in January. Economists thought it would dip to minus 25; it was the lowest reading since 1990, according to High Frequency Economics.

Large-cap Hewlett-Packard was the biggest decliner on the Dow today after the hardware and software maker missed sales expecations and cut its full-year profit outlook.

"We think this could be a blow to investor sentiment," wrote J.P. Morgan analyst Mark Moskowitz in a note.

In other market news, Treasury prices slid as investors sought safety in government debt. The dollar was mixed versus other major currencies. Oil prices spiked 14%, while gold prices dipped a slight 0.33% to $975 per ounce.

Today’s small-cap percentage gainers include Exactech, Inc. (Nasdaq:EXAC), which surged 20% on solid fourth-quarter and full-year 2008 financial results. Also flying high was RC2 Corporation (Nasdaq:RCRC), up 25% after being upgraded to “buy,” and Dress Barn, Inc. (Nasdaq:DRBN), which saw a nice 11% rise after the retailer’s CEO commented that same-store sales were up so far for 2009.

On the downside, LDK Solar Co. (NYSE:LDK) tumbled 22% on a weak Q4 forecast. CryoLife, Inc. (NYSE:CRY) plummeted 23% after its Q4 profit missed the Street’s estimates and it forecasted a lower 2009 EPS. NutriSystem Inc. (Nasdaq:NITRI) fell over 11% after swinging to a Q4 loss and declining to issue full-year guidance.

Small-cap stocks soared into mid-session trading, with financial, energy and gold stocks driving an impressive rally to provide confirmation of Friday’s big rally. The market continues to find bullish inspiration on economic advisor appointments by President-elect Obama, who announced his team today in just the second major press conference since he won the presidential vote earlier this month. Some of today’s small-cap gainers are Wimm-Bill-Dann Foods (NYSE:WBD), General Cable Corp. (NYSE:BGC) and SL Green Realty Corp.  (NYSE:SLG).

Other Market Watch highlights today included:

• Investment banks, brokerage firms, diverse financial instruments, wireless telecoms, homebuilders, coal, real estate services all higher.  
• Gold stocks were seeing huge gains today, boosted by safe haven flows.  
• Commodities in general were a big factor in the stock market rise today, supported by a slide in the U.S. dollar against the euro.  
• Crude oil prices extended the morning rally into midday, rising some $4 a barrel, which stoked a 5% surge in energy stocks. 

Small Cap Gainers:

• Wimm-Bill-Dann Foods OJSC jumped 39% as Russia’s largest dairy company generated a huge bounce off 52-week lows set last week. See (NYSE:WBD).  
• General Cable Corp. rallied 36% as the copper, aluminum and fiber optic cable manufacturer rose off last week’s lows with the overall bounce in commodity shares today. See (NYSE:BGC).  
• SL Green Realty Corp. jumped 35% as the real estate investment trust embraced the Citigroup bail out plan, as Citigroup is the firm’s biggest tenant. See (NYSE:SLG).  
• Dress Barn last week reports increase in Q1 sales, shares are up 10% today. See (Nasdaq:DBRN).

Small Cap Losers:

• Ann Taylor swings to Q3 loss, sees tough Q4. Shares are down 8.7% near a 52-week low of $4.21, down from a 52-week high of $32.82. See (NYSE:ANN).  
• China Eastern passenger throughput down 2.72% in October; shares tumble 12%. See (NYSE:CEA).  
• Life Time Fitness down another 10% today after the small cap announced last week that it would cute 100 jobs. See (NYSE:LTM).  
• Tween Brands is down 18% following last week's announcement of a Q3 sales, earnings drop in "challenging environment." See (NYSE:TWB).