Tag - Dsl

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 . . .

Small caps opened mostly flat, as Fed Chairman Bernanke, Treasury Secretary Paulson, and SEC Chairman Cox testify before Congress on the $700 billion mortgage bailout plan and the recent market turmoil.

At 10:10 a.m. ET the Russell 2000 (NYSE:IWM) was up 12.43, or 0.20%, to 721.87.

Fed Chairman Bernanke, Treasury Secretary Paulson and SEC Chairman's Cox all began testifying before the Senate Banking Committee at 9:30 a.m. ET. The market remains skittish and skeptical, as the administration’s officials paint the details of the plan and what dire consequences could result should Congress opt not to pass the bailout. In a prepared statement for the panel Bernanke said, “If financial conditions fail to improve for a protracted period, the implications for the broader economy could be quite adverse.”

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.

Today will be a day of waiting and listening. Some investors are concerned the plan could get hung up in Congress’ halls, while others remain curious about many of the plan’s details.

In its latest efforts to further shore up ailing banks, the Fed loosened the rules surrounding the ability of buyout shops and private investors to take stakes in them. This is a testament to the level of apprehension regulators have about banks’ liquidity positions.

Overseas, China’s market jumped a hefty 7.8%, as regulators took . . .

Shares of Downey Financial Corp. (NYSE: DSL) jumped in pre-market trading after stating after Monday’s close that it appointed Charles R. Rinehart, as Chief Executive Officer of the company and Downey Savings and Loan Association, F.A. Mr. Rinehart, who has also been appointed to the Board of Directors of each entity, will succeed Downey's interim CEO, Thomas E. Prince.

Shares gained 21%, or $0.64, to $3.75 in pre-market trading. For detailed price information and news stories on Downey Financial, click DSL.

Crescent Banking Co. (Nasdaq:CSNT), Babcock & Brown Air Ltd. (NYSE:FLY) and FirstFed Financial Corp. (NYSE:FED) were among the new 52-week lows established during Monday's trading among companies with market capitalizations or values under $750 million.

Provident Community Bancshares Inc. (Nasdaq:PCBS), Cooperative Bankshares, Inc. (Nasdaq:COOP) and Downey Financial Corp. (NYSE:DSL) were also among the 52-week small-cap lows.

Here are today's 52-week small-cap lows:

American Apparel Inc. (AMEX:APP), Community Central Bank Corp. (Nasdaq:CCBD) and Babcock & Brown Air Ltd. (NYSE:FLY) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $750 million.

Endocare, Inc. (Nasdaq:ENDO), Downey Financial Corp. (NYSE:DSL) and FirstFed Financial Corp. (NYSE:FED) are also among the top small-cap percentage losers.

Here are Monday's biggest percentage losers among small caps:

The Pantry, Inc. (Nasdaq:PTRY), Tween Brands Inc. (NYSE:TWB) and Cascade Financial Corp. (Nasdaq:CASB) were among the new 52-week lows established during Thursday's trading among companies with market capitalizations or values under $750 million.

PFF Bancorp, Inc. (NYSE:PFB), Downey Financial Corp. (NYSE:DSL) and First National Bancshares, Inc. (Nasdaq:FNSC) were also among the 52-week small-cap lows.

Here are today's 52-week small-cap lows:

The Russell 2000 (NYSE: IWM) and the other major U.S. indices moved up today on news of a stronger-than-expected profit at International Business Machines Corp. (NYSE: IBM). The small-cap index gained 7.83 points, or 1.11%, to 712.48. The Dow Jones Industrial Average (INDU) added 171.85 points, or 1.36%, to 12,778.15.

On a year-to-date basis, the Russell 2000 is off 6.99%, while the Dow has lost 3.67% and the S&P 500 has declined 3.55%.

Stocks small and large got off to a positive start as the bulls dominated trading today on news that IBM, the largest information technology company in the world, reported better-than-expected preliminary quarterly results.

The Armonk, New York-based company expects earnings from continuing operations for the quarter ended Dec. 31 to be $2.80 per share, above analysts’ projections of $2.60 per share.

Investors clearly liked the news so much that they disregarded a forecast from Hoffman Estates, Ill.-based retailer Sears Holdings Corp. (Nasdaq: SHLD), which forecasted that fourth-quarter earnings will be below analysts’ expectations due to a decline in same-store holiday sales.

That’s troubling because it points to a negative economic trend.

The announcement from Sears is the latest sign that consumer spending, which comprises about 70% of U.S. gross domestic product, has begun to slow. In the past few weeks many U.S. retailers, including those catering to the wealthy, have reported slugging sales.

The Russell 2000 (NYSE: IWM) has trimmed some of its earlier gains but is still comfortably in positive territory. At 1: 31 p.m. ET, the small-cap index had climbed 2.94 points, or 0.42%, to 707.59. The Dow Jones Industrial Average (INDU) was up 122.75 points, or 0.97%, to 12,729.05.

Trading got off to a good start on news that International Business Machines Corp. (NYSE: IBM), the largest information technology company in the world, reported better-than-expected preliminary quarterly results.

The Armonk, New York-based company said that it expects earnings from continuing operations for the quarter ended Dec. 31 to be $2.80 per share, above Wall Street’s consensus estimate of $2.60 per share.

The better-than-expected result is partially attributed to the weak U.S. dollar, which makes IBM’s overseas profit seem larger.

One greenback is currently worth 0.6722 euros, the currency used by 15 countries in the 27-member European Union. The dollar began the day at a level just above 0.675 euros.

The U.S. dollar has been losing ground for months. In March 2007, it was at a level of around 0.75 euros.

Downey Financial Corp. (NYSE: DSL) shares are declining after the mortgage lender said before the opening that it’s reclassified $99 million in loans as non-performing due to accounting changes.

“We initially did not consider these modifications of performing loans to be troubled debt restructurings, as the modification was only made to those borrowers who were current with their loan payments and the new interest rate was no less than those offered to new borrowers,” Rick McGill, Downey’s president, said in a statement.

The Newport Beach, Calif.-based firm said it initiated a borrower retention program allowing borrowers to change to less expensive financing options. The interest rates of these less expensive options were below the interest rates on the original loans. After a review of the retention program plan, Downey’s auditors reclassified the loans as non-performing.

Downey did not reveal whether the reclassification impacted the company’s financial results.
 
"Unlike other loans classified as non-performing assets, these loans are effectively performing at interest rates no less than those afforded to new borrowers," CFO Brian Cote said in a statement.

In morning trading, DSL shares are down 8.83%, or $2.48, at $25.60. Over the last 52 weeks, shares have ranged from $23 to $74.85.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting gains on news of unexpectedly robust earnings at International Business Machines Corp. (NYSE: IBM).
 
At 10:09 a.m. ET, the small-cap index had advanced 3.28 points, or 0.47%, to 707.93. The Dow Jones Industrial Average (INDU) was up 100.47 points, or 0.80%, to 12,706.77.

The mood on Wall Street is bullish on news before the start of trading that IBM, the largest information technology company in the world, reported better-than-expected preliminary quarterly results.

The Armonk, New York-based company said that it expects earnings from continuing operations for the quarter ended Dec. 31 to be $2.80 per share, above Wall Street’s consensus estimate of $2.60 per share and 24% higher than the $2.26 per share achieved a year earlier.

Elsewhere, retailer Sears Holdings Corp. (Nasdaq: SHLD) announced before the start of trading that it forecasts fourth-quarter earnings below analysts’ expectations due to a decline in same-store holiday sales.