Tag - Fitb

Opening volume was higher in this morning's session with all the major indices, except the Dow, trading in the negative. As of press time at 10:40 A.M. Eastern the Dow is trading just positive at 8,768.67 while the Nasdaq and S&P 500 were down 0.10% and 0.04%, respectively.

Leading small cap gainers today was Real Goods Solar (Nasdaq:RSOL) up 42% on news of a $30 million contract to install a solar power program for the Freemont Union School District in California. RSOL is a commercial solar energy integrator in the California and Colorado markets.

Other gainers in this morning's session include Cadiz (Nasdaq:CDZI) up 40%; American Woodmark (Nasdaq:AMWD) up 18.9% on posting a surprise Q4 profit; and Chinese solar firm Renesola (NYSE:SOL) up 16.9%.

Small cap decliners include United PanAm Financial (Nasdaq:UPFC) down $1.02 to $2.96 for a loss of 26.1% after a notice of delisting from the Nasdaq; Hawkins (Nasdaq:HWKN) down 14.1%; Exide Technologies (Nasdaq:XIDE) down 16.2%.

No sooner do I say that the news cycle is turning negative, we get some significant upgrades in the financial sector. Goldman Sachs (NYSE:GS) got an "outperform" rating and rose 5.2%.

RBC Capital Markets called KeyCorp (NYSE:KEY) a "top pick" and the shares ramped 20%. And Fifth Third Bancorp (Nasdaq:FITB) rose 7% after it reported that it has filled the capital shortfall identified during the Treasury's "stress tests."

At least for a day, the financials re-took their leadership for the markets. Though it should be noted that the Financials ETF (AMEX:XLF) has not made a new high, and the financials are sharing the stage with energy stocks.

*****Money managers report that a lot of cash is sitting in the sidelines. Both individual and institutional investors have been slow to get back into the stock market.

Of course, that's exactly the scenario that can keep stocks moving higher. At least, so long as the economic data doesn't take a turn for the worse.

*****Citigroup reported in a research note that put options volume is picking up and so is the Volatility Index, the VIX. Investors buy put options to profit form downside moves for stock prices. Institutional investors protect gains in large portfolios with put options.

The VIX measures the cost of put options. When it rises, it means that investors see increasing risk in the stock market. Citigroup's chief technical analyst, Tom Fitzpatrick, believes the rise in the VIX is showing "strong warning signals" for the rally.

*****Bulls vs. Bears, fear vs. greed - that's what it always comes down to. Will the analysts who see better times ahead for the banks win out? Or will those who see "warning signs" be right? As always, we'll see…

*****The gains just keep coming for SmallCapInvestor PRO stocks. Since March, we've seen a 152% gain from our top oil stock, and we had Genco Shipping (NYSE:GNK) hit triple-digit territory before recent weakness took it below that threshold. 

Now, one of our top China stocks is knocking on the triple-digit door.  The obvious catalyst for this stock will is that it moves off the over-the-counter market and starts trading on the Nasdaq as soon as today. I expect the increased exposure to help drive the share prices higher. 

This stock blew through our conservative $8 price target. The new listing and rising prices for its product will have a positive influence on shares. Our target price is being raised to $14 per share. That's about 40% higher from current prices. 

I am very bullish on Chinese stocks. And SmallCapInvestor PRO now has 3 Chinese stocks in the portfolio. In fact, we just added one on Wednesday. I've put all three stocks in a brand new Special Report called "Going for Growth: 3 Top Chinese Stocks to Buy NOW." Find out how to get your copy HERE.

Small caps are up nearly 3% this afternoon after the government reported this morning that fewer jobs were lost in April than expected.

At 2:06 pm ET, the Russell 2000 (NYSE:IWM) is up 2.81% at 506.81, while the Dow is up 1.56% and the S&P 500 is up 1.85%.

Employers cut 539,000 jobs last month. That is a big improvement from a revised 699,000 job losses in March and less than the loss of 610,000 jobs analysts had been expecting. Also, the federal government reported that 10 of the 19 largest U.S. banks must raise about $75 billion in new capital, which is less than some had feared.

Small caps on the rise today include MedQuist Inc. (Nasdaq:MEDQ), up 64% after announcing first-quarter 2009 results, and Huntington Bancshares Inc. (Nasdaq:HBAN), 36% higher after completing a $120 million stock issue. Fuel Systems Solutions (Nasdaq:FSYS) is also up 40% today after posting a Q1 net profit, while VNUS Medical Technologies (Nasdaq:VNUS) has popped 35% after news broke that Covidien Ltd. will be acquiring the small cap.

*****The headline reads “Bank Stress Tests Lifts Clouds of Uncertainty.” And bank stocks are rallying. Regional bank Fifth Third Bancorp (Nasdaq:FITB) is up 40% in the early going on the news that it needs to raise $1.1 billion.

In total, the government’s stress tests recommended that banks raise $75 billion to withstand further potential losses. I’m not sure how to reconcile the stress tests results with the IMF report on bank losses that was released in April.

In that report, the IMF said that total losses for banks and financial institutions would hit $4 trillion. The U.S. share of that is $1.6 trillion, of which $510 billion has already been written off. That leaves another $550 billion in write-offs . . .

Small-cap stocks remained in negative territory into midday action, but rallied well off the morning lows as bargain hunters swooped in, hoping that this latest foray toward the range lows offered buying opportunity once again. Gains for airline, biotech, mining and IT stocks helped ease some of the losses endured in bank, financial, homebuilder and insurance shares. At 12:25 p.m. ET, the Russell 2000 (NYSE:IWM) was down 3, or 0.67%, at 444.94, after hitting an intraday low at 438.12.

The market fell hard early this morning, with the Dow sinking to the lowest point since the November lows were forged, while small caps appeared poised to test the January range lows. The market just didn’t believe a “too good to be true” retail sales report, which left another dreary reading on the employment picture as the only place to hang one’s trading cap. For those keeping score, the retail sales report was pegged up 1.0%, versus a forecast for a slide of 0.7%, while the weekly unemployment claims report came in at 623,000, slightly above the 610,000 projection. In the background of today’s news, investors continue to fret about the bank bail out plan and whether or not the stimulus bill will have too deep of a lag time to rescue the stock market in the near term.

Biotech stocks were among the top performers so far today, with the AMEX Biotechnology Index up 1.2%. In addition, the AMEX Airline Index was clinging to positive ground, up 0.2% as crude oil prices remained weak.

Speaking of “black gold” — crude prices fell below $35 a barrel this morning as worries about soft demand amid the U.S. recession continue to smack down buyers that are seduced by talk of OPEC production cuts. The dip in crude oil prices likely weighed on energy shares, which were off about 1% into mid-session.

Despite pockets of strength today, key “theme” groups, like banks and homebuilders were carrying the torch for the bears. The ISE Homebuilder Index was . . .

Small-cap stocks collapsed Tuesday as investors worried that a new plan to rescue a teetering banking system might be “too little, too late” to stave off a deepening recession or unclog credit lines. Even a one-two punch of a new bank plan coupled with Senate approval for a massive $838 billion stimulus bill wasn’t enough to bring cheer to worried investors. The Russell 2000 (NYSE:IWM) closed down 22.17, or 4.74%, at 445.77, giving back most of last week’s hard-fought gain in breakneck fashion, while generating the second-largest one-day decline of 2009. For the year, the Russell is now off 10.7%, while the Dow is down 10.1% and the S&P 500 8.4%.

Going into today’s trading the market was clearly focused on a bevy of events coming out of Washington, including the Treasury Department’s official unveiling of the bank rescue project; the Senate vote on the stimulus package and testimony from Federal Reserve Chairman Ben Bernanke before the House Financial Services Committee. Apparently, it was three strikes and the market was out for today’s big events, but clearly the dominant force was the initial selling wave triggered after the bank plan was formally announced by Treasury Secretary Timothy Geithner.

Was it simply a case of “buy-the-rumor, sell-the-fact” selling from investors who had previously bid up bank stocks ahead of the news, or was there a deep-seated disappointment about the plan? “I think there was a little of both, but the biggest thing is that investors are worried that the current problems are just too big to fix quickly by having taxpayers absorb the risk from banks on their toxic holdings,” one veteran trader told smallcapinvestor.com.

As for the Senate’s long-awaited okay on the stimulus program there will still be a process in which the Senate’s bill and a House version signed two weeks ago will be meshed out together before a final bill is presented to President Obama to be signed into law. For the most part, investors have viewed the stimulus package as more of a long-term recovery tool than an immediate panacea for the economy . . .

Small-cap stocks plunged as investors engaged in a “buy-the-rumor, sell-the-fact” response to the official rollout of the bank bailout plan. After Treasury Secretary Timothy Geithner served up details on the rescue strategy stocks swooned, safe-haven flows abounded and credit default swaps widened as the hand-wringing began in earnest. At 12:22 p.m. ET, the Russell 2000 (NYSE:IWM) was down 13.40, or 2.89%, at 454.40.

Bank and financial stocks have been in rally mode in recent days in anticipation that the government would swoop in, stave off nationalization of banks, clean out bloodied balance sheets and clear the way for lending to flow freely. However, now that the plan has been unveiled, a realization that this process won’t necessarily be easy appears to have taken over investor confidence. The KBW Banking Index slumped nearly 10% at mid-session, while financial stocks in general paced the selling rout.

Bank of America Corp. (NYSE:BAC) tumbled some 14% after the Geithner press event, while Citigroup Inc. (NYSE:C) was off 10%. Regional banks, which had been a star performer on Monday, were the worst performing S&P group so far today. Small-cap bank Fifth Third Bancorp (Nasdaq:FITB) was down 16% while Zions Bancorporation (Nasdaq:ZION) was off 11%.

Outside of the Treasury market, gold stocks were about the only safe spot to park money in the wake of the bank slide move. The Gold and Silver Index was up 1.3%. Small-cap gold stock Novagold Resources Inc. (AMEX:NG) was up 4.6% at midday, while large-cap group leader Newmont Mining Corp. (NYSE:NEM) was up 1%.

Energy stocks took a dive as well, giving back morning gains amid worries that the bank plan could not provide a quick economic recovery and help restore demand for energy products. Crude oil futures slipped back below $40 a barrel, . . .

The Russell 2000 (NYSE:IWM) closed down 2.76, or 0.59%, at 467.94, and is now off 6.3% for the year. Meanwhile, the Dow is down 5.8% for 2009, while the S&P 500 is down 3.7%. Some of today’s small-cap gainers were Huntington Bancshares (Nasdaq:HBAN), Fifth Third Bancorp (Nasdaq:FITB) and Miller Industries (NYSE:MLR).

Other Market Watch highlights today included:

• There was some thought that the market needed a “breather” session after Friday’s gains that flew in the face of a bad employment report.
• Bank stocks continued to perform solidly today, even though a delay in the announcement of the bank bail out plan was deemed necessary.
• Commodities were a bright spot for the market but faded late with the Commodity Research Bureau index slipping into negative territory.
• Crude oil futures closed down 1.5%, or $0.61 a barrel, at $39.56, slipping back below the $40 level after trading above $42 in the morning.
• There was some thought that investors were starting to fret about the stimulus plan vote, which was expected at some point today.
• Volume was relatively thin much of the day for stocks as traders were preoccupied watching for news out of Washington.
• The chart structure for small caps sports an inside session pullback today on light volume, which carries very little downside “oomph” for the market.
• Treasury Secretary Timothy Geithner is slated to have a press conference . . .

Small-cap stocks edged slightly lower Monday, unable to build on the big rally from Friday as the market encountered headwinds on retailer, homebuilder and consumer product stocks that overcame positive movement on bank and financial shares. The Russell 2000 (NYSE:IWM) closed down 2.76, or 0.59%, at 467.94, and is now off 6.3% for the year. Meanwhile, the Dow is down 5.8% for 2009, while the S&P 500 is down 3.7%.

Bank stocks continued to perform solidly today, even though a delay in the announcement of the bank bail out plan was deemed necessary by the Obama Administration in order to focus attention on the fiscal stimulus debate. Energy shares were an important upside force for stocks much of the day, slipped hard in conjunction with the weak close in crude oil, but then staged a bounce back into the close. For the day, energy shares gained 0.3%.

Commodities were a bright spot for the market through much of the day, but faded late with the Commodity Research Bureau index slipping into negative territory by the close, led by the reversal in crude oil and a slide in copper, which pulled back after hitting two-month highs in New York trading.

Crude oil futures closed down 1.5%, or $0.61 a barrel, at $39.56, slipping back below the $40 level after trading above $42 in the morning. Concerns about demand and the global economic slowdown eventually caught up with talk that OPEC leaders were considering further production cutbacks.

There was also some thought that investors were starting to fret about the stimulus plan vote, which was expected at some point today. Stumping for the plan on a trip to Indiana, President Obama said, “I am calling on Congress to pass this bill immediately. Endless delay or paralysis in Washington in the face of this crisis will bring only deepening disaster.”

Even when the market was trying to rally earlier in the day, there were warning signs that the move lacked staying power. For one thing, small caps were noticeably lagging strength in large-cap indices; and for another thing, market breadth in the form of gainers versus losers and new highs versus new lows favored the bearish . . .

Small-cap stocks slipped back into negative territory after a brief morning rally stalled out. Large-cap indices were hovering near steady levels reflecting investor indecision about the stimulus and bank bail out package as traders basically were sitting on their hands waiting on fresh news out of Washington. Some of today’s small-cap gainers were Huntington Bancshares (Nasdaq:HBAN), Albany Molecular Research (Nasdaq:AMRI) and Fifth Third Bancorp(Nasdaq:FITB).

Other Market Watch highlights today included:

• The light volume pullback so far today for small caps really was not that big a warning sign for the chart picture.   
• Homebuilders, retailers, apparel firms, health-care facilities and electronic component companies were down at midday.  
• Despite the upside bump from banks and energy, small caps were still struggling overall and were clearly lagging the large-cap stocks.  
• Energy shares were another source of strength today, with the Energy Select Sector SPDR Fund up 1.3% at midday.  
• The KBW Banking Index was up 2.5% at mid-session. 

Small Cap Gainers:

• Huntington Bancshares rises 22% as many regional banks saw a rise today. See (Nasdaq:HBAN).  
• Albany Molecular Research turns around to profit in Q4; shares rise over 13%. See (Nasdaq:AMRI).  
• Small-cap regonail bank Fifth Third Bancorp jumped 12.5%, and was clearly not rattled by a rpice cut on the stock from Morgan Stanley.  See (Nasdaq:FITB)
• Volcano Corp. rose 7% as the market of heart products gapped higher without any apparent fresh news behind the move. See (Nasdaq:VOLC).

Small Cap Losers:

• Small-cap homebuilder Centex Corp. was off 3.7%. See (NYSE:CTX).  
• On the homebuilder front, the ISE Homebuilder Index was off 1.3%, with similar losses seen for small-cap builders such as KB Home and Lennar Corp. See (NYSE:KB) and (NYSE:LEN). 

Small-cap stocks slipped back into negative territory after a brief morning rally stalled out. Large-cap indices were hovering near steady levels reflecting investor indecision about the stimulus and bank bail out package as traders basically were sitting on their hands waiting on fresh news out of Washington. At 12:19 p.m. ET, the Russell 2000 (NYSE:IWM) was down 1.82, or 0.39%, at 468.89.

Volume seemed quite light through morning activity, but it was interesting to see that bank stocks were among the strongest performers, so investors clearly weren’t too put off that a Washington rollout of the bank rescue plan was pushed back a day to allow lawmakers to focus on the stimulus debate.

The KBW Banking Index was up 2.5% at mid-session, and regional banks were on a roll, hoping that the rescue plan would avert nationalization of the big banks that battling for survival and also prop up smaller banks bogged down by tight credit and hurt by toxic assets. Small-cap regional bank Fifth Third Bancorp (Nasdaq:FITB) jumped 12.5%, and was clearly not rattled by a price cut on the stock from Morgan Stanley. Small-cap regional bank Huntington Bancshares Inc. (Nasdaq:HBAN) jumped 22%, one of the largest percentage movers within the group.

Energy shares were another source of strength today, with the Energy Select Sector SPDR Fund up 1.3% at midday, helped along by a rise in crude oil prices amid talk of further OPEC production cutbacks. The U.S. dollar was down today, providing support to commodity themes as hope for a bank bail out package spurred some . . .

Small caps soared in the green today, representing an impressive upside breakout through the recent trading range, which was defined loosely by the inauguration day collapse Jan. 20. Some of today’s small-cap gainers were VistaPrint (Nasdaq:VPRT), Fifth Third Bancorp (Nasdaq:FITB) and Eagle Bulk Shipping (Nasdaq:EGLE).

Other Market Watch highlights today included:

• The weekly MBA Mortgage Application Index tumbled 38.8% to 732.1% and is now at the lowest point since the week ended Nov. 21.
• Diversified banks, life health insurers, financial services firms, regional banks and asset management firms were top performers today.
• For 2009, the Russell is off 5.3%, while the Dow is down 4.5% and the S&P 500 is down 3.2%.
• Yields on benchmark 10-year notes went from about flat right after the FOMC statement to rising more than 5% by the stock market close.
• Banks were clearly the star of the stock market show today, with the KBW Banking Index soaring 14%
• Crude oil futures in the U.S. edged higher on the close, gaining . . .

Small-cap stocks took it in the chin Wednesday, with retail stocks and financial shares falling out of favor with investors amid a gloomy economic environment and the ongoing credit crisis. The Russell 2000 (NYSE:IWM) lost 5.86, or 0.80%, to 730.71.

The S&P Retail Index crumbled nearly 2% to the second-lowest close since late March. Big-name department stores like Dillards (NYSE:DDS), JC Penney (NYSE:JCP), Nordstrom (NYSE:JWN), Kohls (NYSE:KSS), Macy’s (NYSE:M) and Sears (Nasdaq:SRLD) were all deep in the red

In the financial arena, the biggest percentage loser of the day was MF Global (NYSE:MF), the giant futures and commodities brokerage firm that was split off from Man Group last year. MF shares collapsed nearly 40%, shrinking its market cap down to about $945 million in the process. MF projected a significant decline in revenue and said it would raise $300 million to repay debt via $150 million in preference shares and another $150 million in convertible senior notes.

Although the steep freefall in MF shares was an attention grabber, the bears were active throughout the financial sector. In fact, late in the day seven of the top 10 percentage declines on the Nasdaq were either banks or financial firms. Tuesday’s slide in regional banks remained in play today, with Fifth Third Bancorp (Nasdaq:FITB) sinking nearly 20% after the firm said it would raise at least $2 billion in capital and slash dividends to help overcome credit losses.

The Dow slipped to the lowest daily close since mid-March, when the market was grappling with the collapse of Bear Stearns. For the recent move, the Dow peaked earlier than the Russell 2000, hitting a high on May 19 at 13,136. From the May 19 high to today’s low, the Dow is off 8.7%, while the Russell is only down 2.9% over that same time frame (although the Russell is off 4.8% from the early . . .

Small caps declined after the opening, made a brief resurgence during the second hour of regular trading but have continued their descent in the afternoon. Concerns about the financial sector and FedEx Corp.’s (NYSE:FDX) warning that low demand and high fuel costs will impact profits kept investors gloomy. At 1:39 p.m. ET, the Russell 2000 (NYSE:IWM) was off 9.03, or 1.23%, at 727.54.

Regional banks are taking a beating, with Marshall & Iisley Corp. (NYSE:MI) sinking 4% to a new 52-week low on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set a fresh 52-week low, losing about 3%. Unfortunately, the news remains depressing for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) losing 14% during the afternoon session. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) is plunging some 38% after the Bermuda-based firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and . . .

Small-cap stocks pressed lower on the opening as a fresh batch of earnings failed to impress investors in the aftermath of Monday’s rout on financial stocks and as crude oil drifted up to $135 dollars a barrel. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was off 5.56, or 0.76%, at 731.01.

Regional banks were hammered Monday, with Marshall & Iisley Corp. (NYSE:MI) sinking 5% to 52-week lows on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set 52-week lows, losing about 10%. Unfortunately, the news remains gloomy for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) shedding 16% shortly after today’s opening. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) tumbled 22% as the firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and pay down debt.

The “headline” financial stock coming into today’s action was Morgan Stanley (NYSE:MS), which reported quarterly results that were slightly above the forecast. However, the firm was still pulled into the red, down about 6% in early trading.

Outside of the financial world, FedEx (NYSE:FDX) earnings came in below the forecast, and their outlook for 2009 was dreadfully in line with surging energy costs that are hurting results for the package courier. When the FedEx news came out before the opening, it sparked about a three handle additional decline in large-cap S&P 500 futures.

Speaking of surging energy, crude oil prices climbed back to the $135 dollar a barrel level ahead of the stock market opening on concerns about a potential strike in Nigeria that could crimp output. Crude oil pulled back toward $134 dollars, but should gather direction for the day from the latest stocks data, which will come out . . .

Small-cap stocks grinded out a higher session Wednesday, overcoming an upward reversal in crude oil and a cavalcade of losses in the financial sector as investors embraced a surprisingly stout durable goods report as a sign that the economic pastures were starting to green up ahead. The Russell 2000 (NYSE:IWM) gained 4.07, or 0.55%, to 738.46.

At first blush, the most dynamic news events today would appear to be a big hurdle for small caps to overcome. An overnight smile over another slide in crude oil prices turned into a midday frown as the market for “black gold” reversed course and charged back above $131 dollars barrel. With pump prices now north of $4 dollars a gallon in many parts of the United States, the lofty energy market threatens to pinch off discretionary consumer funds and crimp any economic recovery.

What’s more, the banking sector took it in the chin today, pulled down by mounting loan losses, capital raising efforts and analyst downgrades on investment banks. Marquee financial stocks under pressure today included American International Group (NYSE:AIG), which tumbled about 4%, KeyCorp (NYSE:KEY), which shed about 11% and Lehman Bros. (NYSE:LEH), which dropped about 1%. Regional banks were plowed under by the credit crunch issue, with Fifth Third Bancorp. (Nasdaq:FITB) off some 3.5% and Comerica Inc. (NYSE:CMA) down more than 4% as well. When looking at a rundown of the big percentage losers today, the list was littered with various banks, large and small alike.

The biggest sector losers accompanying regional banks included multi-line insurance firms, specialized finance stocks, diversified banks and brewers. On the upside, buyers were attracted to fertilizer shares, apparel companies, steel stocks, forest products and casinos.

Among individual small caps, Daktronics Inc. (Nasdaq:DAKT) gapped higher this morning and gained some 14% on unusually brisk volume, spurred on by positive earnings news. Also, Gevity HR (Nasdaq:GVHR) rallied about 12%, with the . . .