Tag - Gca

Small-cap stocks extended the morning slide into midday trading, as pressure from a weak economy continues to take a toll on commodity, retail and financial stocks, overshadowing even aggressive rate cuts out of Europe overnight. Today’s small-cap gainers are Lumber Liquidators' (NYSE:LL), Global Cash Access (NYSE:GCA) and American Equity's (NYSE:AEL).

Other Market Watch highlights today included:

• Thomson-Reuters October same-store sales index was off 0.7%, and they pegged today’s retail returns as the worst monthly results in a decade.  
• Energy exporters that depend on demand from big consumers were taking a beating, with the Energy Select Sector SPDR Fund down 5.5%. 
• The IMF said that developed economies were on track for a full-year contraction for the first time since World War II.  
• The malaise continued to bruise commodity markets, with crude oil prices tumbling toward $60 a barrel, or the lowest prices since March.  
• The Russell 2000 is down 2% in midday trading.  

Small Cap Gainers:

• Lumber Liquidators' income up 48% in Q3; shares soar 18%. See (NYSE:LL). 
•  Global Cash Access Holdings reports successful Q3 results; shares climb 25%. See (NYSE:GCA).  
• American Equity's Q3 2008 operating income increases 41%; shares pop over 33%. See (NYSE:AEL).   
• Global Crossing Ltd. rallied 19% as the IP solutions provider also got an earnings-related lift. See (Nasdaq:GLBC).
• Simcere Pharmaceutical Group reports rise in Q3 profit, reaffirms FY08guidance. Shares up 18%. See (NYSE:SCR).  

Small Cap Losers:

• LandAmerica dives 33% on delayed third-quarter earnings. See (NYSE:LFG).
• Georgia Gulf Corporation slips to loss in Q3; shares down 28%. See (NYSE:GGC).  
• SRA International down 26% on Cowen & Co. downgrade. See (NYSE:SRX).  
• Playboy Enterprises sees sharp ad sales drop, shares tumble 22%. See (NYSE:PLA).  

The Russell 2000 (NYSE: IWM) rallied and posted gains for the fourth consecutive day on news that the American consumer remains strong. The small-cap index added 18.06 points, or 2.35%, to 785.60. The Dow Jones Industrial Average (INDU) climbed 205.01 points, or 1.55%, to 13,450.65.

On a year-to-date basis, the Russell 2000 is off 0.23%, while the Dow is up 7.83% and the S&P 500 has risen 4.79%.

The bulls completely dominated trading today on news that personal spending rose a better-than-expected 1.1% in November, according to the U.S. Commerce Department. The increase, the biggest in over three years, came as consumers responded favorably to holiday discounts offered by retailers.

Economists were expecting spending to increase 0.7% after a rise of 0.2% in October.

The news calmed fears that consumers will cut back on spending due to falling home prices and higher energy costs. Consumption is about 70% of gross domestic product.

However, Americans are still apprehensive about the economy and their personal finances.

A Reuters/University of Michigan consumer survey showed that consumer sentiment fell to 75.5 in December from 76.1 in November. That’s the lowest level since September 2005, when the country was dealing with the aftermath of Hurricane Katrina.

Economists had actually forecasted a slightly steeper decline to 74.5. Consumer sentiment measures whether or not consumers feel like spending money.

The Commerce Department also reported that personal income in November rose a lower-than-expected 0.4% following an increase of 0.2% in October.

In corporate news, Merrill Lynch (NYSE: MER) also contributed to the bullish sentiment. A report in The Wall Street Journal claims that the New York-based company will sell a stake of itself for a $5 billion cash injection from Singapore’s state investment company.

The Russell 2000 (NYSE: IWM) is in the red as positive news from the tech sector lifts the Dow Jones Industrial Average (INDU) but fails to impress small-cap investors. At 1:52 p.m. ET, the small-cap index had shed 2.42 points, or 0.31%, to 769.18. The Dow Jones was up 63.89 points, or 0.49%, to 13,173.94.

The mood in pre-market trading was bullish following news that analysts have raised their recommendations for Hewlett-Packard Co. (Nasdaq: HPQ), the world’s largest maker of personal computers, and energy giant Chevron Corp. (NYSE: CVX).

Also contributing good news was tech sector heavyweight Cisco Systems Inc. (Nasdaq: CSCO), a maker of networking equipment, which announced that it has authorized additional stock repurchases valued at as much as $10 billion, raising the total amount to $62 billion.

Stocks started in positive territory but small caps tumbled down soon afterward, while the Dow held on for longer before trimming some of its gains and eventually also slipping into the red.

The bears’ return was facilitated by news that U.S. industrial production surprisingly fell 0.5% in October, the most since January, according to data released by the U.S. Federal Reserve before the opening. Industrial production added 0.2% in September.

The data confirm economists’ projections that U.S. economic growth is shifting into lower gear. Industrial production is about 20% of gross domestic product.

But the bulls managed to regain their footing and the major indices, with the exception of the Russell 2000, started climbing and moved into the green at about 11 a.m. ET.

The Russell 2000 (NYSE: IWM) is deep in negative territory while the Dow Jones Industrial Average (INDU) is marginally lower following news of a surprise drop in industrial production.

At 10:41 a.m. ET, the small-cap index was down 9.68 points, or 1.25%, to 761.92. The Dow was down 16.02 points, or 0.12%, to 13,094.03.

Industrial production surprisingly fell 0.5% in October, the U.S. Federal Reserve reported minutes before the opening. That’s the biggest decline since January. Economists were expecting a rise of 0.1% after industrial production added 0.2% in September.

The decline was due primarily to a 1.6% drop in utilities, while mines fell 0.6% and construction slipped 0.4%.

Capacity utilization for the total industry declined to 81.7% from 82.2% in September.

The numbers tell us that the U.S. economy is probably headed for a slowdown, as industrial production is about 20% of gross domestic product. But the on the other hand, factories have plenty of room to ramp up production without triggering inflation.

In corporate news, there was a bullish mood before the start of trading on news that analysts have raised their recommendations on computer hardware maker Hewlett-Packard Co. (Nasdaq: HPQ) and energy giant Chevron Corp. (NYSE: CVX).

Also contributing good news was Cisco Systems Inc. (Nasdaq: CSCO), after the Internet communications company authorized additional stock repurchases valued at as much as $10 billion, raising the total amount to $62 billion.

Stocks started in positive territory but small caps tumbled down soon afterward, while the Dow held on for longer before trimming some of its gains and eventually also slipping into the red.

Global Cash Access Holdings, Inc. (NYSE: GCA) shares are plunging after the operator of casino ATMs said it will delay its third-quarter regulatory filing. The Las Vegas-based business said the report is being delayed because of accusations by an unidentified individual.

Global Cash said it will release the quarterly filing “as soon as practicable.”

“The company and its board of directors take these matters very seriously and accordingly the company’s management is cooperating fully,” CEO Scott Betts said in a statement.

In afternoon trading, GCA shares are plummeting to a new year low, down 55.76%, or $5.13, at $4.07. Over the last 52 weeks, shares have ranged from $5.13 to $17.12.