Tag - Fbc

Small-cap stocks finished off one of the worst months in history with a four-day rally fueled by improving credit conditions, month-end bargain hunting and a willingness by investors to look beyond current weak economic fundamentals. The Russell 2000 (NYSE:IWM) closed up 4.53%. Today’s small-cap gainers are SM&A (Nasdaq:WINS), MGIC Investment (NYSE:MTG) and Gramercy Capital (NYSE:GKK).

Other Market Watch highlights today included:

• The Russell is now down 30% for the year. The Dow is down 30% for 2008, while the S&P 500 is off 34%. 
• Financial stocks played a key role in the rally today, after lagging on some bounce attempts earlier in the week. The Financial Select Sector SPDR Fund rose 3.3%.
• Small- and mid-cap banks and financial institutions were noted all along the top percentage movers today on various exchanges. 
• Crude oil prices rallied in the final 30 minutes of trading today, but gains in the commodity arena were hampered by a firm tone in the U.S. dollar, which gained about 1.3% against the euro.

Small Cap Gainers:

• SM&A jumped 126% on news that the firm will be purchased by Odyssey Investment Partners for $6.25 a share. See (Nasdaq:WINS).
• Wisconsin Energy to replace MGIC Investment in S&P 500. MGIC shares closed up over 60%. See (NYSE:MTG).
• Gramercy Capital reported 34% Q3 rise in funds from operations, halts dividends. Shares closed up 79%. See (NYSE:GKK).  
• Sonic Automotive reported losses in Q3 but shares closed up a whopping 41%. See (NYSE:SAH).
• China Eastern Airlines Corp. Ltd. gapped higher and soared 27%. See (NYSE:CEA).

Small Cap Losers:

• Penson Worldwide Inc. closed down 40% on news that a subsidiary has incurred a $15.5M unsecured receivable from a firm that has ceased operations. See (Nasdaq:PNSN).
• Bare Escentuals Inc. gapped lower and shed some 40% on soft earnings news. See (Nasdaq:BARE).  
• Sunrise Senior Living announces transaction has been terminated. Shares . . .

Small-cap stocks staged an impressive rally into midday trading, bolstered by signs of thawing in the credit market freeze, month-end bargain hunting and a renewed appetite for riskier market bets amid hope that the October collapse in equities has already priced in the worst of the economic news. Today’s small-cap gainers are Delta Petroleum (Nasdaq:DPTR), US Airways Group Inc. (NYSE:LCC) and China Eastern Airlines Corp. Ltd. (NYSE:CEA).

Other Market Watch highlights today included:

• On the radar screen for this afternoon’s trading is an appearance by Federal Reserve Chairman Ben Bernanke, who will talk about the mortgage market and the economy.  
• Looking ahead to next week, the market will get a douse of several key economic indicators, including the big employment report a week from today. 
• Today's reports on personal income, the employment cost index and consumer sentiment were rather tame and clearly overshadowed by enthusiasm that October is coming to an end.  
• Inter-bank lending rates have tumbled to the 3% zone, down some 14 consecutive trading sessions, and well off the peak above 5% at the beginning of October.  
• The top-performing sector so far today has been casinos, followed up by homebuilders, semiconductor equipment, airlines, insurance brokers, construction materials and wireless telecoms.

Small Cap Gainers:

• Delta Petroleum up 10% on Kerkorian Plan to increase holdings. See (Nasdaq:DPTR).
• US Airways Group Inc. is rallying 11% and hit the highest price since March. See (NYSE:LCC).  
• China Eastern Airlines Corp. Ltd. gapped higher and soared 27%. See (NYSE:CEA).  
• United Stationers Q3 profit rises on higher sales, one-time gains. Shares are treading 17% higher. See (Nasdaq:USTR).  


Small Cap Losers:

• Protective Life Corp. down 20% on higher-than-average volume. See (NYSE:PL). 
• CommScope Q3 profit rises; sees Q4 revenue below consensus; cuts FY08 revenue outlook. Shares are slumping 26%. See (NYSE:CTV).  
• Flagstar Bancorp clocks a loss in 2008 Q3 results; shares dive 26%. See (NYSE:FBC).
• Sunrise Senior Living announces transaction has been terminated. Shares are down 34%. See (NYSE:SRZ).  

After opening higher on the government’s plan to ease going concerns surrounding Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE), small caps came under pressure 30 minutes into the session and remain submerged midday, as apprehension concerning the financial sector took the forefront.

At 1:23 p.m. ET., the Russell 2000 (NYSE:IWM) skidded 11.29, or 1.67%, to 663.66, while the Dow lost 58.54, or 0.53%, to 11,042.

In an effort to restore confidence in the nation’s largest mortgage insurers Fannie Mae and Freddie Mac, the U.S. Treasury and the Federal Reserve devised a plan over the weekend in which an increase in a treasury line of credit would be extended temporarily. Additionally, as part of the plan the Fed would take on a consultant role. After both mortgage giants saw their share prices lopped off by some 45% last week, midday, Fannie shares were off a slight 2.44% midday, while Freddie stock has reversed course to slip 4.65%. 

However, the plan constructed to pacify an otherwise panicked market soon gave way to concerns about the government’s ability to battle further financial debacles. Investors worry how many potentially more innovative or practical backstops the government has up its sleeve. 

The plan comes on the heels of IndyMac’s (NYSE:IMB) failure on Friday. IndyMac was repossessed by the federal regulators after one of the largest thrift/mortgage banks failed to cover a run by depositors, becoming the third largest banking failure in U.S. history.

In corporate news, the nation’s largest brewer Anheuser-Busch Co. (NYSE:BUD) said that it will embrace a takeover from Belgian brewer InBev NV for approximately $52 billion, one of the few positive market indicators of the day. Merger activity typically creates bullish momentum among investors, as seen in the wake of the booming deal days of 2007. If there are deals in the making among large caps, . . .