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Immunomedics Inc. (Nasdaq:IMMU), RTI International Metals Inc. (Nasdaq:RTI) and Genesco Inc (Nasdaq:GCO) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Clean Energy Fuels Corp. (Nasdaq:CLNE), Medallion Financial Corp. (Nasdaq:TAXI), Westport Innovations Inc. (Nasdaq:WPRT), Isle of Capri Casinos Inc. (Nasdaq:ISLE), Bon-Ton Stores Inc. (Nasdaq:BONT) and Jo-Ann Stores Inc. (Nasdaq:JAS).

Small-cap stocks pushed higher Thursday, boosted by talk that the Obama stimulus plan and his measures to help banks could include a provision to suspend the “mark-to-market” accounting provision that many say hurts financial balance sheets. In addition, tech stocks and retailer shares showed surprising strength that allowed the market to look past sobering economic data on the employment and factory orders front. The tech-laden Nasdaq 100 Index rose 2.4% on the day, while the Russell 2000 (NYSE:IWM) closed up 6.60, or 1.47%, at 455.08 and is now down 8.8% for the year. Meanwhile, the Dow is off 8.1% for the 2009, while the S&P 500 is down 6.3%.

Critics of the mark-to-market accounting procedure say that it forces firms to write-down losses on unrealized assets, which in turn bloodies the bottom line prematurely. However, proponents of the accounting process say it helps avert disasters like the Enron debacle. President Obama is slated to hold a press conference Monday evening to rollout his stimulus plan to the world in an effort to build momentum to get the $800 billion package pushed through a divided political landscape.

It was encouraging to see the stock market grind out a positive session today, especially in the face of disheartening data on weekly unemployment claims and slumping factory orders. The claims report came in at 626,000, which was way above the projected figure and also at 26-year highs. What’s more, the number of Americans forced to file for continuing unemployment benefits rose to 4.78 million, the highest number in history. Having a record number of people on the unemployment rolls the day before the monthly Labor Department employment report seemed quite daunting this morning, but the market quickly embraced the accounting talk and looked past the data.

Also on the economic front, the factory orders report tumbled 3.9%, . . .

Small-cap stocks are expected to push lower on the opening, with support from a raft of rate cuts around the world overnight countered by concerns over profit outlooks and worries over monthly retailer sales tallies. Stock index futures were down about 1.5% in pre-market trading, which suggests the Russell 2000 (NYSE:IWM) will open near 447.50.

European stocks were higher after European Central Bank officials slashed 75 basis points off their benchmark lending rate, which was more aggressive than expected. However, European shares slipped into the negative after El du Pont de Nemours and Co. (NYSE:DD) revised their profit outlook downward this morning. The DuPont news added to a dreary tally of fresh profit/outlook concerns from several companies, including Merck & Co. Inc. (NYSE:MRK), Cirrus Logic Inc. (Nasdaq:CRUS), Intersil Corp. (Nasdaq:ISIL) and Jo-Ann Stores Inc. (NYSE:JAS).

Back to the rate cut news, the Bank of England, Sweden’s Riksbank, New Zealand authorities and even Indonesia cut lending rates overnight as central bank officials around the world strive to battle the economic downturn.

The weekly claims report this morning came in at 509,000, which is historically a big number, but which was actually below the forecast of 540,000. The four-week moving average on claims rose to 524,500 which was above 518,250 from . . .

Small-cap stocks continued to climb Thursday, powered by a solid performance in financial, retail and airline stocks, by yet another “good news” economic report and by a sudden downdraft in crude oil prices. The Russell 2000 (NYSE:IWM) gained 14.85, or 2.03%, to 747.79 and is now down 2.38% on the year.

Small caps were strong relative to the S&P 500 and also broke free of a close pattern they had been keeping with tech stocks. The S&P 500 was up 1.48% and is down 11.4% for 2008, while the Nasdaq was up 0.78% and is off 8.1% for the year. Meanwhile, the Dow was up 1.85% and is down 11.6% for the year.

On the financial front, investors continue to gain confidence in government-sponsored enterprises Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE), which has become a source of great relief for banks, insurance firms and a host of other financial shares. FNM rose another 22% today has recovered over 50% from last week’s lows when investors were concerned that all the share equity in GSEs would be rendered worthless. A shakeup in management at FNM and talk that the firm’s balance sheets were not as bleak as feared powered the latest recovery move today.

The ripple effect throughout financials was easy to see, with the Financial Select Sector SPDR Fund climbing 3.8% and the PHLX KBW Banking Index up 4.0%. Big-name firms such as Citigroup Inc. (NYSE:C) and Bank of America Corp. (NYSE:BAC) both registered gains in the 5% range.

Some of the bullish psychology for today’s action was tied to this morning’s upside surprise on the GDP report, which came in at 3.3%, well above the forecast for a rise of 2.7%. The GDP report was just the latest in a friendly string of data surprises this week, including consumer confidence Tuesday and durable goods Wednesday. On its own merit, second-quarter GDP is somewhat dated since we’re nearly two-thirds of the way through the third quarter, but when the market is rallying, it’s . . .

Small-cap stocks extended the morning rise into mid-session, receiving a boost from a sudden reversal in course on crude oil prices. The day was already off to a solid start when economic data on growth came in above expectations. At 12:50 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.31, or 0.86%, at 739.26.

The volatile world of energy prices made an about face from morning highs near $120 dollars a barrel, slipping back to the $115 zone on reports that strategic petroleum reserves could be released if Tropical Storm Gustav crashed into key energy production zones in the Gulf of Mexico, stunting supplies out of that key region. Gulf output accounts for some 25% of U.S. crude production and about 15% of natural gas output.

The stock market got things off in rosy fashion this morning when second-quarter GDP came in at 3.3%, which was well above the forecast for a rise of 2.7%. The GDP report became yet another in a string of bullish data surprises this week, following consumer confidence Tuesday and durable goods orders on Wednesday. That said, some of these data series are volatile (durables and confidence) and others are relatively out of date (GDP), so clearly there are other forces at play providing a boost to the stock market.

One of those forces would appear to be month-end short-covering from hedge funds, and that buying interest has been magnified by thin volume conditions ahead of the final big summer holiday weekend in the United States. In addition to the short-covering push, financial stocks appear to be on more stable footing this week, with government-sponsored enterprises Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) bouncing on management changes at FNM and on ideas that the mortgage funding giants might not be in as bad a sharp as feared. FNM was up 12% at midday, while FRE was up 11%. Financial stocks in general were up nearly 3% . . .

Small-cap stocks pushed higher in morning action, underpinned by a stronger-than-expected GDP report, which continued a string of recent bullish data surprises. However, gains were limited by a soft tone in the U.S. dollar and by climbing crude oil prices. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 1.74, or 0.24%, at 734.69.

The headline figure on GDP was at 3.3%, quite a bit better than the projection for a rise 2.7%, boosted by a 13.2% rise in export activity and by a bump in consumer spending from the release of tax stimulus checks. The latter is a temporary lift and it should be noted that this GDP report is for the second quarter, and we’re nearly two-thirds of the way through the third quarter now. Economic activity has slowed again … if the market wants to rally in the shadow of this GDP report, then there are probably other stories driving the push. The most likely story is that hedge funds are booking profits on shorts for month-end purposes, and that short-covering push is taking place at a time when volume is very thin ahead of the last summer holiday weekend in the United States.

In addition to the GDP report, weekly unemployment claims out this morning, and hit the forecast on the noggin at 425,000. While the headline number was in line with expectations, the continuing claims figure was at 3.42 million, which marks the highest point since November 2003. The number might not have been a surprise, but it also wasn’t anything for the bulls to get excited about either.

It is worth noting that economic data has been the story of late, starting with an upside surprise on consumer confidence Tuesday, continuing with durable goods orders Wednesday and then hitting another high note on GDP numbers this morning.

The morning focus on economic releases did manage to shuffle crude oil to the background, if only for a moment. That said, crude oil prices remain in rally mode, churning toward $120 dollars a barrel into the stock market open. Crude prices continue to climb as traders fret about the need for a risk premium as Tropical Storm Gustav is on a path that could threaten energy production in the Gulf of Mexico. As Gustav treks into the Gulf, it is expected to regain hurricane status; . . .

Shares of Jo-Ann Stores, Inc. (NYSE: JAS) got a pop this morning after the national fabric and craft retailer reported a narrower-than-forecasted loss in the second quarter and issued an encouraging outlook for 2009 after Wednesday’s close.

Net sales increased 3.7% in the quarter, while same-store sales increased 3.3% compared with a 7% increase for the same period last year. Gross margins improved 190 basis points to 47.6% from 45.7% in the second quarter of the prior year, but on account of lower sales of clearance merchandise.

Looking ahead, management raised its outlook for fiscal 2009 based on a better-than-expected first half, stating that it “expects year-over-year improvement in its performance.”

Shares gained 12%, or $2.78, to $25.45 in the first half hour of trading. For detailed price information and news stories on Jo-Ann Stores, click JAS.  

Small-cap stocks are expected to open higher, boosted by an upside surprise on economic growth for the second quarter, which will help investors once again look beyond another surge in crude oil prices. The Russell 2000 (NYSE:IWM) pushed from flat to up about 0.4% after the data, which suggests an opening near 735.50.

GDP was pegged at plus 3.3% for the second quarter, well clear of the 2.7% forecast, boosted by strong exports, which were up 13.2%. At the same time that GDP numbers came out, the market also received data on weekly unemployment claims, which met the forecast at 425,000.

The immediate market response to the numbers was a five-handle upside rise in S&P 500 futures, which moved from slightly lower territory to higher ground. In addition, the dollar firmed from down 0.2% against the euro and yen to near unchanged levels. Perhaps the biggest move was seen in Treasury markets, with bonds and notes sinking in response to the stronger-than-expected GDP number.

Crude oil futures continued to push higher overnight, climbing toward $120 dollars a barrel amid concerns about the path of Tropical Storm Gustav, which could threaten energy production in the Gulf of Mexico. Although the weather system was downgraded to a tropical storm, it is expected to regain hurricane status soon and appears to be trekking toward key crude oil and natural gas areas in the Gulf.

Stocks on the radar screen overnight included Sears Holdings Corp. (Nasdaq:SHLD), which was down about 1.3% after quarterly profits missed the forecast . . .

Small-cap stocks reversed course Thursday, pulling back into the recent range as the credit crisis moved to the forefront, punishing financial stocks. The selling mood was also stirred by soft economic data and worries about consumer spending after sluggish sales at benchmark retailer Wal-Mart Stores (NYSE:WMT). In the end, the Russell 2000 (NYSE:IWM) shed 12.48, or 1.72%, to 713.42.

Large-cap financial stocks were getting hammered in the afternoon today, extending a gloom that began after Wednesday’s close when insurance giant American International Group (NYSE:AIG) reported hefty quarterly losses amid write-downs of bad mortgage loans. The whole mess with AIG rekindled fears about the credit crunch and investors dumped shares in a wide swath of financial names. AIG tumbled some 18% on the day. The nation’s top bank, Citigroup Inc. (NYSE:C) stumbled amid news that the firm would buy back some $7 billion in auction-rate securities and pay a $100 million civil fine to settle a suit that it misled investors on the risk of the investments. Citigroup lost about 6% on the day. Merrill Lynch & Co. (NYSE:MER) lost 8%, Lehman Bros. Holdings, Inc. (NYSE:LEH) tumbled 13%, JP Morgan Chase Co. (NYSE:JPM) was down 4% and mortgage finance firms Fannie Mae (NSE:FNM) and Freddie Mac (NYSE:FRE) were down 14% and 9%, respectively. The Financial Select SPDR was down 5%--and it’s not as if those declines are limited to the large-cap banks and brokerage houses. There are dozens of small- and mid-cap banks out there, and they have even more trouble accessing credit during the crunch than the big firms.

As you might expect...

Small-cap stocks pushed higher on the opening, lifted by another slide in crude oil prices overnight, and by a pleasant upward surprise on durable goods data ahead of the opening. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 0.72, or 0.11%, at 735.11.

Crude oil prices have now tumbled more than 5% off last week’s record highs, and were pressured overnight by news that Saudi Arabia would increase production and that Asian demand could begin to ebb because of high price levels. In general, the commodity story was under pressure early today, with gold sinking about 2% and grains prices expected to tumble this morning.

There was some thought that traders might be unwinding some of the long crude oil/short dollar trades that have been so popular in recent months. The greenback was on a bid this morning, climbing 0.3% against the euro, and about 0.7% versus the yen. In general, a strong dollar at this stage of the economic cycle is seen as supportive to equities, reflecting investment flow demand and softening food and energy prices, which would bolster consumer purchasing power.

Back to the durable goods report, the headline figure came in down 0.5%, which was better than the forecast for a slide of 1%, but the real surprise was on the ex-transportation figure, which was up 2.5%, well clear of the median expectation for a gain of 0.5%. The MBA Mortgage Application survey also came out this morning, and reflected slack demand, with the index down 4.6% and the purchase index off 17.4%. This is a volatile data base and appeared to be overshadowed by the durables surprise. The economic data push for today is now out of the way; later . . .

The Russell 2000 (NYSE: IWM) moved down today but the Dow Jones Industrial Average (INDU) posted a modest gain on news of reports showing a coming slowdown in U.S. economic growth. The small-cap index fell 3.98 points, or 0.52%, to 766.06. The Dow added 22.28 points, or 0.17%, to 13,311.73.

On a year-to-date basis, the Russell 2000 has lost 2.71%, while the Dow is up 6.71% and the S&P 500 has advanced 3.75%.

Stocks began the session in the red as investors worried that an economic slowdown is imminent even though gross domestic product grew at an impressive 4.9% annual rate during the third quarter of 2007, according to the Commerce Department. That’s an upward revision from the preliminary figure of 3.9%.

“The upward revision to third-quarter GDP is not all good news,” said Arun Raha, vice president of economic research and consulting for the North American operations of reinsurance company Swiss Re, in an email. “Apart from the higher-than-expected exports, we also got a higher-than-previously-estimated inventory buildup, which accounted for a large part of the increase.”

“My view on fourth-quarter growth remains pessimistic,” Raha concluded, echoing the fears of many investors.

Helping the bears control trading in the morning was news from the U.S. Labor Department that jobless claims for the week ended Nov. 24 rose 23,000 to 352,000, the highest number since February. The revised figure for the preceding week is 329,000.

The four-week moving average was 2,589,250, an increase of 20,500 from the preceding week’s revised average of 2,568,750.

“Employment is a lagging indicator, and as activity slows, we’ll see some softening in the job market,” said Raha. “The bad news on this front is yet to come.”

Bad news of a different kind came shortly after the start of trading, when the U.S. Census Bureau reported that new home sales for October missed projections. The numbers showed an increase of 1.7% to 728,000, but the total from September was revised down sharply to 716,000 from 770,000 previously.

The median sales price of new houses was $217,800, 15% cheaper compared with a year earlier, when the average new home cost $250,400.