Tag - Len

Stocks moved higher today after several positive reports reversed early downward trading trends. Investors initially drove down stocks on news that first time unemployment claims increased by 15,000 last week.

Gains were made in homebuilders like Lennar (NYSE:LEN), KB Homes (NYSE:KBH), and Toll Brothers (NYSE:TOL) as well as retailers like Bed Bath & Beyond (Nasdaq:BBBY), Kirkland's (Nasdaq:KIRK), and Pier One (NYSE:PIR). Both sectors have seen bankruptcies (Linens and Things, Circuit City, among others) and layoffs over the past year as the souring economy has brought housing starts to a crawl and forced consumers to pull back in discretionary spending.

The broader indexes were up today with the Dow finishing at 8,472.40, the Nasdaq showing positive gains to close up 37.2 points to close at 1,829.54, and the S&P 500 posting a 2.14% gain to close at 920.26.

Small-cap stocks in the Russell 2000 helped propel that index 2.87% to close at 509.14 today.

Leading small-cap gainer was Jazz Pharmaceuticals (Nasdaq:JAZZ) up 37% on news that the late-stage results for its fibromyalgia drug had met the company's main goal. The drug, Xyrem, is scheduled to be submitted for marketing approval. Gains in Jazz shares outpaced gains made by other, better known, pharmaceutical manufacturers including Pfizer (NYSE:PFE), Merck (NYSE:MRK), and share price losses posted by GlaxoSmithKline (NYSE:GSK).

As we've mentioned in previous updates, this follows a general trend of sector rotation as investors are looking for more defensive plays, like healthcare and pharma, over the summer.

Other small-cap gainers for today include CPI International (Nasdaq:CPII) up 32%; Tween Brands (NYSE:TWB) up 27% on news that Dress Barn (Nasdaq:DBRN) will buy it for roughly $157 million in stock; Royale Energy (Nasdaq:ROYL) up 32.5%, an energy company involved in development and exploration of natural gas and oil in California, Texas, and the Rocky Mountain region.

Small-cap decliners were lead by medical oral diagnostics maker OraSure Technologies (Nasdaq:OSUR) down 23% on news that it needs to conduct more additional clinical trials to get approval for its hepatitis C virus test. The exact timing and costs for these additional tests have not been disclosed by OraSure and investors drove down share prices based on this uncertainty.

A number full of other small-cap stocks were big decliners today including data marketing services provider Acxiom Corporation (Nasdaq:ACXM) down 22%; Capital Bank Corporation (Nasdaq:CBKN) down 20%; and Cordorus Valley Bancorp (Nasdaq:CVLY) down 19%.

The Fed has spoken. Interest rates are not going higher anytime soon. And the Fed announced no change to its $1.75 bond purchase program. Bonds sold off, suggesting that traders hoped the Fed would do more to put a floor under prices.  

The Fed made it a point to say that "…inflation will remain subdued for some time." But the Fed also hasn't made any comments about target levels of inflation, or what levels of inflation would make it uncomfortable. With the amount of money being pumped into the system, this is a concern to me. Especially with commodity prices rising and the spread between 10-year Treasuries and 10-year inflation adjusted bonds (TIPS) increasing over the last month.  

*****Nothing will kill whatever recovery the Fed and others see coming faster than higher interest rates fueled by inflation fears.  

Most signs point to an imminent economic recovery. No one thinks it will be strong. But two straight months of increase for Durable Goods orders has most convinced that recovery, and a small level of inflation, is here.  

The Fed, in the other hand, is still fighting deflation. Unemployment is still on the rise, and modest improvement in the housing market doesn't mean we're anywhere close to working off the massive inventory of unsold homes. 

Given the very low expectations for economic recovery, maybe 2% growth in 2010, how does the Fed hike interest rates and start sopping up liquidity? I believe inflation will have to become a concern before the Fed can act.  

*****In case you missed last night's special Internet Video Conference, called Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth, I have a replay ready for you. You can access it HERE.   

*****Reuter's reported yesterday that Rep. Barney Frank and another Democrat wrote a letter to the CEOs of Freddie Mac and Fannie Mae asking them to relax their standards for condo loans.  

Apparently Freddie Mac and Fannie Mae recently said they wouldn't give loans to potential condo buyers if the condo development was less than 70% occupied. Makes sense, these days. But Frank and his friend are worried the tighter standards will impair the housing market and constrict future developments. 

This is appalling. The only thing we need more than more condos is more Hummers.  
If the government truly thinks we can simply reflate our way back to prosperity, they are sadly mistaken. This recession is new animal, one where both consumers and corporations took on way too much debt. That debt now sits in the form of unsold homes, many of which have been foreclosed upon. 

These homes (and condos) must get sold. But they must get sold to people with the means to pay the loans. Simply lowering lending standards doesn't do it and may well prolong the pain of this recession. Isn't the lowering of lending standards much of what got us into this mess to begin with? 

*****China's still throwing its cash around, this time offering $7.2 billion for oil exploration company Addax Petroleum (LSE:AXC.L). It would be state-run Sinopec (NYSE:SNP) actually doing the deal. But after the attempt to buy a $19 billion stake in Rio Tinto (NYSE:RTP) it should be obvious that China is intent on securing the commodities it needs. 

And in a world starved for cash, don't be surprised when China gets what it wants.  

*****Last year, travel group AAA reported that car travel over the 4th of July was down 10.5%. This year, it will fall another 1.9%.  Airline travel is expected to be up nearly 5%.  

 

S&T Bancorp Inc. (Nasdaq:STBA), TRW Automotive Holdings Corp. (Nasdaq:TRW) and Fisher Communications Inc. (Nasdaq:FSCI) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Central Pacific Financial Corp. (Nasdaq:CPF), Ameris Bancorp (Nasdaq:ABCB), Yadkin Valley Financial Corp. (Nasdaq:YAVY), Lennar Corp. (Nasdaq:LEN), Federal Signal Corp. (Nasdaq:FSS) and Summit Financial Group Inc. (Nasdaq:SMMF).

Acorda Therapeutics Inc. (Nasdaq:ACOR), China Sky One Medical Inc. (Nasdaq:CSKI) and Lennar Corp. (Nasdaq:LEN) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Oxford Industries Inc. (Nasdaq:OXM), Ener1 Inc. (Nasdaq:HEV), Cheviot Financial Corp. (Nasdaq:CHEV), Winmark Corp. (Nasdaq:WINA), CNB Financial Corp. (Nasdaq:CCNE) and Allos Therapeutics Inc. (Nasdaq:ALTH).

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-cap stocks eked out a modest advance Monday, enduring an up and down session in which better-than-expected economic data and enthusiasm about M&A activity dueled with bank worries and job loss jitters. In the end, the Russell 2000 (NYSE:IWM) closed up 5.70, or 1.28%, at 450.06. For the New Year, the Russell is now down 9.9%, while the Dow is off 7.5% and the S&P 500 is down 7.3%.

On the data front this morning, reports on existing home sales and leading indicators both beat the forecast for a rare upbeat showing out of economic data. The National Association of Realtors said that existing home sales rose 6.5% in December to an annual rate of 4.74 million units, well ahead of the projection of 4.40 million. As for leading indicators, the Conference Board said that an index of economic indicators rose 0.3% in December, which also was a much better showing than the forecast for a drop of 0.3%. It also marked the first rise in leading indicators since June.

The market will get more information on the housing sector via Thursday’s new home sales report, but the bulk of homes sold in America come via existing home sales, so today’s report was truly a ray of sunshine for a market that is teetering back on the verge of the bear market lows from November. The Russell is now down more than 13% from the January peak and last Friday generated the lowest weekly close since those bear market lows were carved out in November and the second-lowest weekly finish in more than five years. There is a large segment of market watchers who believe that the economic collapse started in the housing arena and the recovery won’t start until home prices stabilize and start to work higher. That camp got a rare positive signal today.

In addition to the economic data, a massive acquisition in the pharmaceutical arena was announced this morning before the open, with Pfizer Inc. (NYSE:PFE) — the world’s largest pharma firm — announcing plans to buy Wyeth (NYSE:WYE) for $68 billion, the largest deal in that sector for years. Pfizer shareholders didn’t care much for the news because the company will cut dividends to help pay for the purchase, and PFE shares retreated some 10%. From an overall market standpoint, . . .

Small-cap stocks remained higher into mid-session, bolstered by a big acquisition on the pharma front, which sparks hope that small caps are undervalued overall. If there are deals being done for large caps, then there should be attractive acquisitions for a bevy of smaller companies. In addition, a surprisingly strong showing on existing home sales also provided a lift to the market. Some of today's small-cap gainers were RXi Pharmaceuticals Corp. (Nasdaq:RXII), WellCare Health Plans Inc. (NYSE:WCG) and StealthGas (Nasdaq:GASS).

Other Market Watch highlights today included:

• Looking at sector activity today, metals and mining stocks were the strongest performing group in the S&P.  
• Energy prices and stock market direction have been trading hand-in-hand of late, so the rise in equities clearly supported crude oil.
• Energy stocks were on a roll today, up 2.9%, mirroring a 3% climb in cash crude oil prices.  
• Small caps remained higher, bolstered by a big acquisition on the pharma front, which sparks hope that small caps are undervalued overall.  

Small Cap Gainers:

• RXi Pharmaceuticals Corp. jumped 31% on news that the firm will enter a research collaboration with the University of Massachusetts Medical School. See (Nasdaq:RXII).  
• WellCare Health Plans Inc. rallied about 19% as the firm updated its 2008 forecast and said it would pay in fall outstanding term loan balances. See (NYSE:WCG).
• StealthGas climbs 15% in pre-market after announcing a rise in Q3 profit; declaring dividend. See (Nasdaq:GASS).
• Homebuilder stocks were going well today, with the ISE Homebuilders Index up 4.6%, with small-cap builder Lennar Corp. rising 11%. See (NYSE:LEN). 

Small Cap Losers:

• Wyeth withdraws from Crucell takeover talks; Crucell tumbles 15% in pre-market. See (Nasdaq:CRXL).
• AMN Healthcare Services Inc. was down 13% sinking to 52-week lows. See (NYSE:AHS).  

Small-cap stocks remained higher into mid-session, bolstered by a big acquisition on the pharma front, which sparks hope that small caps are undervalued overall. If there are deals being done for large caps, then there should be attractive acquisitions for a bevy of smaller companies. In addition, a surprisingly strong showing on existing home sales also provided a lift to the market. At 12:53 p.m. ET, the Russell 2000 (NYSE:IWM) was up 8.96, or 2.02%, at 453.32.

Buyers also were happy to see that bellwether stock General Electric Co. (NYSE:GE) retained its credit rating despite slumping profits last quarter. And massive bank Barclays said that they did not need additional capital to weather the current storm, which provided a boost to the financial sector. The Financial Select Sector SPDR Fund was up 2.2% at midday.

Energy stocks were on a roll today, up 2.9%, mirroring a 3% climb in cash crude oil prices. Energy prices and stock market direction have been trading hand-in-hand of late, so the rise in equities clearly supported crude oil. In addition, OPEC cuts appear to be attracting a higher compliance rate than usual, providing some offset to concern about weak demand and hefty reserves.

This morning’s existing home sales report came in with a rise of 6.5% to a rate of 4.74 million units, quite a bit better than the forecast of 4.40 million, according to the National Association of Realtors. In addition, the Conference Board said that an index of leading economic indicators rose 0.3%, which also topped the forecast for a slide of 0.3%. The home sales data were particularly positive for the market, as many believe that this whole mess started with a housing bubble and won’t turn around until the housing market shows that it has bottomed. Later this week we’ll get data on new home sales to add to the overall housing picture, but the bulk of home . . .

Small-cap stocks took a sizable hit today and finished off the first full week of the New Year’s trading with a resounding thud as an unsettling report on employment rekindled worries about the recession, consumer spending and the credit crunch. The Russell 2000 (NYSE:IWM) closed down 20.71, or 4.13% at 481.30 and is now down 3.6% for the year, generating the largest one-day drop of 2009 in the process. Selling in small-caps was much more fierce than that seen in the Dow, which was only off 1.6% for the day; for the year, the Dow is down 2%, while the S&P 500 is down 1.4%.

In recent weeks, the market has often tried to rally in the face of troubling economic data, but the bulls just weren’t eager to shrug off this morning’s jobs report, which showed the unemployment rate rising to a 16-year peak. What’s more, unemployment is widely expected to climb in the next couple of months; earlier today, bond giant PIMCO chief Bill Gross said that “we’re only halfway home” as far as job losses are concerned in the U.S.

The headline figure on today’s employment report – the number of non-farm payroll jobs lost ...

Small-cap stocks remained lower into mid-session, pressured by worries over the economy following a dour report on the nation’s employment status. Energy shares and homebuilders were taking a hit today, which added to the bearish tilt. Still, the market bounced off the early lows as investors continue to bet that the worst of the recession news is already priced into the market. At 12:26 p.m. ET, the Russell 2000 (NYSE:IWM) was down 11.79, or 2.35% at 490.22.

Today’s monthly employment release from the Labor Department said that the unemployment rate climbed to 7.2%, the highest level since 1993. Although the jobless rate was above expectations, the 524,000 decline in non-farm payrolls met the consensus forecast and was better than the “whisper” numbers floating about ahead of this morning’s report. Treasury markets turned higher after the news, which suggests the economy fears are still very much in play.

Looking at sector activity so far today, technology stocks, energy firms, banking shares and homebuilders were pacing the declines. Retailers were also taking a hit, with apparel and accessory companies down hard again today. Losers were swamping ...

Small-cap stocks turned lower into mid-session trading, unable to sustain a mild morning rise as ongoing worries about the economy came back to the forefront following dreadful data on home sales. As expected, homebuilders were among the hardest hit stocks so far today, with retailers, banks and auto manufacturers also acting as a drag on the market. At 12:49 p.m. ET, the Russell 2000 (NYSE:IWM) was down 7.79, or 1.64%, at 467.28.

Existing home sales, which account for the overwhelming majority of activity, plunged 8.6% to an annual rate of 4.49 million units, far below the projection of 4.93 million units. What’s more, the price on homes tumbled 13.2%, the biggest percentage decline in 40 years. The ISE Homebuilders Index tumbled 3%, outpacing the overall market slide by a wide margin. Among small-cap homebuilders, Centex Corp. (NYSE:CTX) was off 4.1%; KB Home (NYSE:KBH) was down 3%; and Lennar Corp. (NYSE:LEN) was down 4%.

The worst performers so far today have been the automakers, with General Motors Corp. (NYSE:GM) down 15% and Ford Motor Co. (NYSE:F) off 16% following news that their credit ratings were slashed. The PHLX Retail Index was down 1% at midday, while the S&P Retail Index was off about 0.5%. Big department stores were among the worst sector groups today, with Macy’s Inc. (NYSE:M) sinking 5.5%.

The ongoing fretting about the economy pulled down crude oil prices, which slipped below $39 a barrel, off about 3.7% at midday. Energy shares weren’t as weak as the cash market, but were still down about 0.9%, with oil and gas drillers among the weaker performers.

Financial shares were holding up reasonably well, but banks were a noticeable source of strain in the financial arena. The KBW Banking Index was off . . .

Small-cap stocks stormed higher Tuesday, extending a morning rally when investors got word that the Federal Reserve slashed interest rates to the lowest level in history and hinted that they wouldn’t hesitate to utilize other tactics to help jolt the moribund economy out of one of the worst recessions since the Great Depression of the 1930s. The Russell 2000 (NYSE:IWM) rose 30.28, or 6.69%, to 482.35, the highest daily close since Nov. 13. For the year, the Russell is still down 37%, while the Dow is off 33% and the S&P 500 is down 38%.

The FOMC stunned the market by slashing rates by 75 to 100 basis points, well beyond the 50-bp cut that was expected. Policy makers also made no bones about their mission right now: save the economy, worry about prices later. In fact, the Fed’s own statement said they would “employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability.” With prices sinking as evidenced by today’s CPI report, the clear goal is economic growth. Now that the Fed is basically handing out money free of charge to those with access to the Fed window, the next order of business would appear to be attacking long-term interest rates, either through direct purchases or other means. The action was bold and stock market investors liked the approach.

It will be interesting to see if the heightened focus on long-term rates will provide a spark to the moribund housing market. Housing starts numbers released this morning tumbled to the lowest rate in history and slumped 18.9% on a seasonally adjusted rate. Despite the gloomy picture of the housing market, homebuilder shares took off today, attracting bottom-fishers on hopes that a light at the end of the tunnel . . .

Small-cap stocks started out the week with a whimper as bleak manufacturing data, sinking financial and homebuilder shares and money flow away from equities took a toll on the market. The Russell 2000 (NYSE:IWM) closed down 15.86, or 3.39%, at 452.57 and is now down 41% for the year, while the Dow is off 35% and the S&P 500 down 41%.

Bank and financial shares have been a persistent drag on the market in recent days. The big news on the banking front today was an analyst downgrade on JP Morgan Chase and Co. (NYSE:JPM), which pulled down the rest of the financial universe. JPM shares lost 7.4% on the day, and the Financial Select Sector SPDR was off 4.1%. The market also was reluctant to buy bank and financial stocks ahead of earnings releases from Goldman Sachs Group Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS); both firms lost some 1% on the day. Treasury market yields tumbled some 2% on the day, indicating that money was moving toward safe-haven outlets in concert with the weak tone in equities.

A fresh batch of economic data today was predictably awful, with the New York Manufacturing Survey sinking to a record low and the industrial production report showing a decline of 0.6%. That said, both of the reports were actually better than forecast and a much worse reading on manufacturing overnight in Japan didn’t stop the Nikkei from rising 5.2%, so it would be presumptuous to blame today’s . . .

Small-cap stocks were holding ground into mid-session, buoyed by hope for a White House rescue for automakers and by a bounce in tech stocks, real estate investment trusts, homebuilders and gold stocks, which helped counter ongoing weakness in the financial arena. At 12:32 p.m. ET, the Russell 2000 (NYSE:IWM) was up 4.18, or 0.93%, at 455.39, even though the Dow and S&P 500 were both in negative territory.

On the auto front, the White House appears ready to throw a lifeline to cash-strapped firms via the TARP funds, which have previously been utilized primarily in the banking arena. President-elect Obama also stated that he was disappointed that the Senate shot down a $14 billion bailout bill and the hoped the White House and Congress will find a way to help beleaguered U.S. automakers. As it became apparent some type of emergency bridge loan or funding proposal would more than likely take place quickly, shares in both General Motors Corp. (NYSE:GM) and Ford Motor Co. (NYSE:F) rallied hard off the morning lows. In fact, Ford climbed into positive ground, after sinking some 26% earlier in the day.

The resilient rise in small caps was a welcome sign after stock index futures tumbled 4% overnight when the Senate first squashed the automaker bill. Real estate investment trusts (REITS) were on a serious roll today, with small-capper Prologis (NYSE:PLD) jumping 26%, reversing a big slide from Thursday. Small-cap firm Apartment Investment & Management Co. (NYSE:AIV) was up nearly 7% and Developers Diversified Realty Corp. (NYSE:DDR) jumped 11% -- all of these companies were hammered Thursday and were in correction mode today.

On the homebuilder front, small-cap firm Centex Corp. (NYSE:CTX) rose 4%, KB Home (NYSE:KBH) was up 4% as well and Lennar Corp. (NYSE:LEN) was up 5%. Homebuilder shares were a hot ticket last week when mortgage applications shot to the highest point since February, but they cooled off this week until . . .

Small-cap stocks unraveled in the final hour of trading as the weight of crumbling commodity stocks, a raft of sloppy profit reports and another batch of dreary economic data countered a sturdy performance in retail, homebuilder and bank stocks. The Russell 2000 (NYSE:IWM) closed down 14.23, or 3.14%, at 439.53, the sixth lowest daily close in more than five years. For 2008, the Russell is off 43%, while the Dow is down 37% and the S&P 500 is down 42%.

Energy shares were a major drag on the market today, with crude oil prices tumbling to the lowest level in nearly four years as energy traders fretted about a global recession which would continue to destroy the demand side of the equation. The Energy Select Sector SPDR Fund tumbled nearly 7%.

The story in commodities ran deeper than just the energy market, however. Copper prices – which are considered a key industrial metal and a proxy for economic health – slumped to the lowest closing price in more than three years, losing 5% during U.S. trading. The Commodity Research Bureau Index of 19 physical markets slipped 3.7% and made new bear market lows, a troubling development when stock market watchers are eagerly trying to find a bottom in equities. The CRB Index is now down 54% from the July peak and is at the lowest point in more than six years.

The market started out the day on shaky footing, as several prominent companies either missed profit projections or lowered guidance. In addition, several firms announced plans for sizable layoffs, a chilling thought heading into Friday’s monthly employment report. DuPont (NYSE:DD) missed the forecast badly, and said it would cut 2,500 jobs, while AT&T (NYSE:T) said it would slash 12,000 jobs. Those sobering jobs reductions came into the teeth of today’s weekly report on unemployment claims. Even though the weekly figure was below projections, the number of Americans who are out of work and forced to file for extended unemployment benefits rose to the highest point in 26 years.

Despite all the dreary news afloat, small-cap stocks actually spent much of the session in positive territory before the final hour meltdown. Homebuilder stocks, retailers and financial issues staged solid rallies most of the day, which . . .

Small-cap stocks hovered near steady levels into mid-session trading, with support from retail, homebuilder and financial shares countered by sinking energy and technology shares. At 12:36 p.m. ET the Russell 2000 (NYSE:IWM) was up 0.06, or 0.01% at 453.82, while the Dow and S&P 500 were both suffering losses approaching 1%.

The International Council of Shopping Centers said that November sales plunged a record 2.7% on a year-over-year basis as very few major retailers were able to generate positive sales numbers. Despite the gloomy news, investors made a risky bet that this marked a bottom point for retailers and that all the bad news was already priced into the market. The S&P Retail Index was actually up nearly 5% at midday.

In a familiar theme this week, homebuilder shares were still a hot item today. The ISE Homebuilders Index was up more than 7%. Small-cap firms like Centex Corp. (NYSE:CTX) were up 12%, while Lennar Corp. (NYSE:LEN) was up about 14%. In recent days, there has been a growing hope that a new push to lower mortgage rates will strike up activity in the downtrodden housing arena, and indeed this week’s MBA Mortgage Application Index jumped a whopping 112% to the highest point since mid-February. That’s not to say all the economic news is roses and cream; after all, today’s factory orders report was below expectations and the worst showing in eight years and the number of Americans forced to file for extended unemployment insurance is at 26 year highs.

The energy market is clearly not comfortable today with the economic picture around the world. Crude oil prices tumbled to near four-year lows amid worries about a global recession, finding little comfort in a fresh string of rate cuts from central bankers in Europe overnight. The slide in physical markets took a toll on energy stocks as well, with the Energy Select Sector SPDR Fund down 3.3%.

Individual small caps making noteworthy moves today include Parkervision Inc. (Nasdaq:PRKR), which gapped higher and soared some 65% on unusually heavy volume amid news that the wireless communications firm has entered into a joint . . .

Small-cap stocks started out Thursday’s trading session in the red, but quickly bounded back into positive territory showing similar resilience to “bad” news that was seen during Wednesday’s rise. So far today, investors were juggling a raft of disappointing profit reports against the bullish scenario from a fresh batch of rate cuts around the world. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was up 7.20, or 1.59%, at 460.96.

Several big companies announced plans to reduce workforce numbers this morning, reinforcing the concept that the jobs picture will get uglier before it gets better -- a numbing thought ahead of Friday’s big monthly employment release. There was a bevy of companies that either missed the profit forecast this morning, or lowered the outlook, but the one that seemed to spark the biggest response in pre-market trading was E I du Pont de Nemours and Co. (NYSE:DD), as chemical manufacturer DuPont said it now expects to lose money this quarter versus a previous projection for a profit. In addition, DuPont said it would cut 2,500 jobs. AT&T (NYSE:T) said it would slash some 12,000 jobs.

Economic data on weekly unemployment claims came in better than feared, but the expectations were so terrible that the upside surprise on claims didn’t have much kick. After all, the headline figure still came in above 500,000, which is a big number historically. What’s more, the number of Americans extending unemployment insurance because they can’t find a job rose to the highest point in 26 years. Simply put, firms are laying off employees and they can’t find work. The factory orders report this morning came in at minus 5.1%, which was worse than the forecast for a drop of 3.8% and which was the biggest decline in more than eight years.

In overnight action, central bankers around the world were busy slashing interest rates to help bolster sagging economic activity. The European Central Bank sliced 100 basis points off their benchmark rate, bringing it down to 2%. Meanwhile, . . .

Small-cap stocks reversed course, putting a brief but sharp morning slide on awful economic data in the rear-view mirror as investors gobbled up homebuilding, retail and financial shares and set aside any economic worries stirred by sobering private employment and services sector activity reports.  Some of today’s small-cap gainers are Forest City Enterprises Inc. (Nasdaq:FCE.B), Grey Wolf Inc (NYSE:GW) and Orthofix Intl. (Nasdaq:OFIX).

Other Market Watch highlights today included:

• Crude oil prices stabilized after weekly inventory reports showed a decline in crude oil stockpiles and a drop in refined products.  
• Obama: Automakers appear to be formulating “more serious” business models to help justify a government bailout of the ailing sector.  
• The ISE Homebuilders Index jumped 10% and small-cap homebuilders were among the best performers in the group.  
• The ability to rally after a bad reading on the ADP Employment Survey ahead of Friday’s big monthly employment report was a positive sign.


Small Cap Gainers:

• Forest City Enterprises Inc. jumped 26% as the commercial property firm benefited from the bounce in homebuilder and REITS. See (Nasdaq:FCE.B).  
• Grey Wolf Inc. rose 23% as the oil and gas driller announced a merger deal with Precision Drilling Trust. See (NYSE:GW).  
• Orthofix Intl. climbed 21% on news that a large owner in the firm is pushing for it to call a special shareholder meeting and sell a medical business unit, reduce corporate overhead. See (Nasdaq:OFIX).  
• Other small-cap homebuilders rallying today were Lennar Corp., which was up 8%, and KB Home, which soared 16%. See (NYSE:LEN) and (NYSE:KBH).

Small Cap Losers:

• Infineon Technologies sees a widened Q4 loss; shares careen 38%. See (NYSE:IFX).  
• IIVI Inc. was off 15% as the electronics and telecommunications manufacturing company revised guidance downward. See (Nasdaq:IIVI).  
• Alpha Natural Resources Inc. fell 14% as the coal miner revised guidance. See (NYSE:ANR).  
• Bucyrus sinks 7.4% in pre-market after completing its purchase of Czech firm, OKD Bastro. See (Nasdaq:BUCY). 

Small-cap stocks reversed course, putting a brief but sharp morning slide on awful economic data in the rear-view mirror as investors gobbled up homebuilding, retail and financial shares and set aside any economic worries stirred by sobering private employment and services sector activity reports. At 12:26 p.m. ET, the Russell 2000 (NYSE:IWM) was up 4.75, or 1.07% at 446.57.

Small caps were leading the way on the midday surge, which suggests that investors were willing to take on a more aggressive posture and not just sit on defensive, low-risk plays. Along that theme, yields on Treasury products were higher as demand clearly was more focused on riskier fare today.

The ability to rally in the face of a bad reading on the ADP Employment Survey ahead of Friday’s big monthly employment report was a positive sign for the market. In addition, the ISM non-manufacturing survey came in well below the forecast, showing the services sector of the economy is mired deep in recession.

Homebuilder stocks were in rally mode Tuesday and remained a hot item today. The ISE Homebuilders Index jumped 10% and small-cap homebuilders were among the best performers in the group. Centex Corp. (NYSE:CTX) was a star Tuesday and jumped another 12% today. Meanwhile, Lennar Corp. (NYSE:LEN) was up 8% and KB Home (NYSE:KBH) soared 16%. Homebuilder shares appear to be attracting bargain hunters amid sentiment that the government’s new focus on lowering long-term and mortgage rates will spur renewed activity in the housing sector and generate fresh refinancing at lower interest rates. President-elect Obama said today that homeowners inability to pay mortgages is a key part of the recession.

Obama also said that automakers appear to be formulating “more serious” business models to help justify a government bailout of the ailing sector. Ford Motor Co. (NYSE:F) was up 5%, but General Motors Corp. (NYSE:GM) was down . . .

Small-cap stocks staged a solid recovery rally Tuesday, recovering a hefty slice of the historic collapse from Monday’s freefall but remaining in the shadow of that epic decline. Strength today stemmed from short-term oversold conditions, hope for a rescue bail-out of automakers as well as bargain hunting in financial and homebuilder shares. The Russell 2000 (NYSE:IWM) closed up 24.75, or 5.93%, at 441.82. The Russell is now down 42% for 2008, while the Dow is off 37% and the S&P 500 is down 42%.

Optimism for a $25 billion aid package for embattled U.S. carmakers may have played a supportive role in the action today, but stock in General Motors Corp. (NYSE:GM) came tumbling down from a steep morning rally after word got out that November vehicle sales collapsed 41.3% versus the same month last year. Executives from the Big 3 automakers submitted plans to Congress for the bail-out proposal. Ford Motor Co. (NYSE:F) was the first to release their plan, which called for a $9 billion loan, no executive bonuses, a reduction in dealers and new plans for electric cars. Into the close, GM shares were up slightly, while Ford was up about 4%.

Financial stocks were among the top performers today, with the Financial Select Sector SPDR Fund up 5%, including another sizable rise in Citigroup Inc. (NYSE:C), which was up 9%. Smaller banks and financial firms dominated the best percentage movers as well.

Homebuilder shares were surprisingly stout, with the ISE Homebuilder Index climbing 7.5%. Within the small-cap universe, KB Home (NYSE:KBH) jumped 9.5%, Lennar Corp. (NYSE:LEN) rallied 14.1% and Centex Corp. (NYSE:CTX) rose 11.5%. Perhaps the group was simply oversold, and perhaps some of the move was tied to hopes that further rate cuts and the government’s new push on lowering longer-dated debt rates would revive the sagging housing industry. On Monday, Federal Reserve Chairman Ben Bernanke intimated that the Fed could purchase long-term products and that sentiment was echoed today by Philadelphia Federal Reserve Bank President Charles Plosser, who said that the Fed certainly can buy Treasury products and . . .

The Russell 2000 (NYSE:IWM) had an up and down session Tuesday, but in the end the bulls won the skirmish. Small caps closed up 1.46%, while the Dow and S&P 500 lagged gains. Some of today’s small-cap gainers are Tween Brands (NYSE:TWB), DR Horton (NYSE:DHI) and Lennar Corp. (NYSE:LEN).

Other Market Watch highlights today included:

• Tuesday morning’s report on U.S. GDP came in as expected, clearing the way for the market to start on a positive note. The report confirms that the economy is on pace for an “official” recession moniker if fourth-quarter growth contracts as expected. 
• The Fed and Treasury announced a new TAL, which will be granted initial funding of $20B via the original $700B in TARP money. 
• The Case-Shiller Home Price Index tumbled a record 17.4% from last year and the index was down 1.9% in September from the previous month.
• Retailers were in rally mode Monday, but were struggling to stay positive, just a few days in front of Black Friday.
• Tech stocks were a drag on the market, as the tech-laden Nasdaq-100 underperformed the rest of the market and shed 1% on the day.
• Crude oil took a dive today, tumbling $3.7 a barrel, or about 6.8%
• Despite the retreat on physical energy prices, energy stocks still managed to push higher today, and actually outpaced the broad market indices.

Small Cap Gainers:

• Tween Brands (NYSE:TWB) closed up 47% today, rebounding from major losses the stock saw on Monday.
• DR Horton Inc. (NYSE:DHI) jumped 38%, riding the overall housing updraft today despite reporting larger-than-expected quarterly losses.
• Lennar Corp. (NYSE:LEN) soared some 32% as the second-largest U.S. homebuilder benefited from an analyst upgrade.
• Developers Diversified Realty (NYSE:DDR) reported insider buying; shares . . .

Small-cap stocks turned lower at midday as slumping technology shares weighed on investor psychology and offset optimism over yet another new government credit facility aimed to encourage consumer loan activity. In addition, fresh economic data had a predominantly gloomy tone and the market may have been ripe for a breather following two days of dramatic advances. Some of today’s small-cap gainers are Lennar Corp. (NYSE:LEN), DR Horton Inc. (NYSE:DHI) and American Woodmark (Nasdaq:AMWD).

Other Market Watch highlights today included:

• Retailers were in rally mode Monday, but were struggling to stay positive today, just a few days in front of Black Friday  
• The worst performers so far are home: ent. software, specialty stores, asset management firms, distillers and vineyards, and dept. stores.  
• Consumer confidence levels actually improved more than expected, rising to 49.9, up from the forecast of 38.5 (but still low historically).  
• Homebuilders are the best performers, followed by construction materials, managed health care, building products and Internet software.

Small Cap Gainers:

• Lennar Corp. soared some 52% as the second-largest U.S. homebuilder benefited from an analyst upgrade. See (NYSE:LEN).  
• DR Horton Inc. jumped 25%, riding the overall housing updraft today despite reporting larger-than-expected quarterly losses. See (NYSE:DHI).
• American Woodmark up 18% after posting narrower-than-expected Q2 loss. See (Nasdaq:AMWD).
• Media and marketing company Alloy, Inc. up over 15% today on light volume, paring much of the losses it suffered on Monday See (Nasdaq:ALOY).  

Small Cap Losers:

• K-V Pharmaceuticals drops 24% after a bevy of law firms launch investigations into the small cap concerning losses suffered by investors who purchased stock between Feb. 15 and Nov. 12. See (NYSE:KV.A).  
• FirstFed Financial Corp. down 21% today on no fresh news. Over the weekend the savings and loan holding company declared a dividend. See (NYSE:FED).
• BankAtlantic Corp. down another 20% today following news on Friday that the SEC launched a probe into the company's handling of troubled loans and some of its officers' stock transactions. See (NYSE:BBX).  
• Ulta Salon Cosmetics & Fragrance Inc. tumbled 19% as investors backed away from the beauty retailer ahead of an earnings conference call this afternoon. See (Nasdaq:ULTA).  

Small-cap stocks turned lower at midday as slumping technology shares weighed on investor psychology and offset optimism over yet another new government credit facility aimed to encourage consumer loan activity. In addition, fresh economic data had a predominantly gloomy tone and the market may have been ripe for a breather following two days of dramatic advances. At 12:51 p.m. ET, the Russell 2000 (NYSE:IWM) was down 6.29, or 1.44%, at 430.50.

Yields on Treasury products were sharply lower this morning, which suggests investors are still risk averse, even after a two-day rally that rivaled anything seen since the bounce off the 1987 stock market crash. The yield on benchmark 10-year notes was off some 5.1%.

Looking at sector activity so far today, homebuilders were the best performers, followed by motorcycle manufacturers, industrial REITS, construction materials, managed health care, building products and Internet software services. The firm tone in various housing-related stocks was interesting given fresh economic data this morning showing that housing prices staged a record decline last month from previous year levels.

In other data news today, the GDP report came in as advertised, with a retreat of 0.5%, which puts the economy on the verge of an “official” recession, even though many market watchers argue the economy has already been mired in a recession for months on end. Interestingly, consumer confidence levels actually improved quite a bit more than expected, rising to 49.9, up from the forecast of 38.5 (but still low historically).

When the government isn’t outright giving taxpayer funds to big banks, they are continuing to build credit facilities to try and encourage lending activity and the latest products today included one for consumer asset-backed items (like autos, . . .

Lennar Corp. (Nasdaq:LEN), Citi Trends Inc. (Nasdaq:CTRN) and Life Time Fitness Inc. (Nasdaq:LTM) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Hadera Paper Ltd. (Nasdaq:AIP), Meritage Homes Corp. (Nasdaq:MTH), United Community Bancorp (Nasdaq:UCBA), American Woodmark Corp. (Nasdaq:AMWD), Student Loan Corp (Nasdaq:STU) and National Research Corp. (Nasdaq:NRCI).

Here are the biggest percentage gainers among small caps:

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 . . .

After plunging out of the gate this morning, small-cap stocks continue to bleed mid-session, besieged by a continued troubling outlook for financials, disappointing guidance by tech heavyweights, a lackluster outlook for the auto sector and a slowing economy —  all of which sparked concern for suppressed corporate earnings for the near foreseeable future.

At 1:19 p.m. ET, the Russell 2000 (NYSE:IWM) was down 16.70, or 2.33%, to 699.60, tumbling below a two-month low on April 22. The Dow skidded 241.58, or 2.05%, to reach a low for the year of 11,570.25, while the Nasdaq swooned 61.92, or 2.58%, to 2339.34.

Stocks are under pressure after Goldman Sachs downgraded the brokerage sector to “neutral” from “attractive,” citing a lack of positive catalysts going forward and eroding fundamentals. Goldman claims that investors are focusing more than needed on the possibility of another major bank collapse. The investment bank also downgraded Dow component Citigroup (NYSE:C) to “sell,” pushing the bank down 5% midday. Merrill Lynch (NYSE:MER) shares were off 4%, joining the weakness seen in financial shares after the opening.

Fresh concerns surrounding the health of the auto industry have also surfaced after Goldman Sachs lowered its rating on General Motors Corp. (NYSE:GM) to “sell” from “neutral,” sending shares sinking 10% mid-session.

The tech-heavy Nasdaq has been battered the most today, dragged down by disappointing guidance from tech juggernauts Research in Motion (Nasdaq:RIMM) and Oracle Corp. (Nasdaq:ORCL) Oracle posted solid quarterly results, but provided a cautious outlook for the next quarter. Shares for the third-largest software maker were off 3% early. Rim was downgraded by JMP Securities to market perform from market out perform today The blackberry maker said its revenue and earnings doubled, but issued a cautioned that earnings could come under pressure as it ramps up spending.

In economic news, GDP for the first quarter was upwardly revised to 1%, as expected. The figure is dated as we near the end of the second quarter, but does indicate that the economy did not slide into negative growth to start 2008. Weekly claims figures rose to 384,000 in the latest week, which was slightly above the forecast. Existing home sales clocked in better than expected at plus 2%, with an annual . . .

Small-cap stocks extended the upward march much of the day Wednesday, lifted by tame consumer price inflation data this morning, which eased some concerns that the Federal Reserve’s tightening gun was coming out of the holster sooner than expected. However, the rally sputtered in the final hour of trading, and the Russell 2000 (NYSE:IWM) closed down 0.79, or 0.11%, at 736.07. On the face of things, it might not seem like a big deal to only lose 0.11%, but a lower close when making new five-month highs serves up a potential topping pattern on charts that raises a caution flag heading into action Thursday and Friday.

After yesterday’s glut of Fed speakers inundated the market, many traders came away with the interpretation that Federal Reserve policy makers were turning hawkish, preparing to fight inflation. However, this morning’s CPI reading was seen as a sign that inflation remains at bay — at least for now — which should buy the market some time before rate hikes become plausible. The CPI headline number came in at 0.2%, just below the 0.3% forecast, while the “core” reading, which excludes food and energy, was up 0.1%, also below the 0.2% projection.

While gains in large caps were fairly broad-based Wednesday from a sector perspective, homebuilder and retailer stocks appeared to be especially giddy about the prospect of delaying rate hikes down the road. The S&P Retail Index jumped about 1.6% on the day, with Macy’s Inc. (NYSE:M) rising about 4%. Among homebuilders, DR Horton Inc. (NYSE:DHI) was up over 2% and Lennar Corp. (NYSE:LEN) . . .

If you think back to the glory days of investing (circa 1999), you'll remember how investors morphed their philosophy to fit their dreams of infinite Internet riches.

If your memory fails, here's a refresher: In the early stages of Internet mania, retail merchants like Yahoo! Inc. (Nasdaq: YHOO) and Amazon.com, Inc. (Nasdaq: AMZN) took to orbit. When they free-fell back to earth, backbone providers like Cisco Systems, Inc. (Nasdaq: CSCO) and JDS Uniphase Corporation (Nasdaq: JDSU) were launched. When they fizzed, energy companies (which were painted as  “Internet” plays, because—as the logic of the day went—they powered the whole system) where ignited. 

In short, investors stepped back from each successive layer of Internet exposure as the risks of each layer became obviously apparent. 

Circuitous as the logic appeared, it was grounded (somewhat) in rationality. Risk-adverse investors want to avoid risk when confronted with it. The risk usually manifests first in front-line companies. 

In today's market, investors are stepping back from the front-lines of housing.  Indeed, price movement suggests investors are more willing to invest in the sector through home improvement centers like Home Depot, Inc. (NYSE: HD) and Lowe's Companies, Inc. (NYSE: LOW) than through homebuilders like Lennar Corporation (NYSE: LEN) and Hovnanian Enterprises, Inc. (NYSE: HOV). 

Investors with even less risk tolerance, but still desiring housing exposure, are stepping back further to the less-roiled environs of title insurance providers—the folks who ascertain the property's ownership and indebtedness status.

One company on these back lines that has maintained a semblance of balance is Stewart Information Services Corporation (NYSE: STC), one of the nation's largest title insurance groups, with a national market share of 11.8%.  Over the past year, its share price has fluttered between $34 and $44 a share (currently fluttering around $36), which compares favorably to the homebuilders, many of whom have seen their share prices plummet by 50% to 70%.

The Russell 2000 (NYSE: IWM) is leading the bulls’ stampede, up more than 2%, while the Dow (INDU) is on record territory. At 2:20 p.m. ET, the small-cap index had added 19.01 points, or 2.36%%, to 824.46. The Dow Jones Industrial Average had gained 195.82 points, or 1.41%, to 14,091.45, above its close of 14,000.41 on July 19.

The bulls are dominating trading this afternoon as investors speculate that the worst is over for the subprime mortgage sector.

Homebuilders, which have been hit particularly hard by the ongoing slump in the U.S. housing sector, got a breath of fresh air today when Citi Investment Research advised buying shares of Lennar Corp. (NYSE: LEN), D.R. Horton, Inc. (NYSE: DHI), Pulte Homes, Inc. (NYSE: PHM), Centex Corp. (NYSE: CTX) and The Ryland Group, Inc. (NYSE: RYL).

Citi Investment Research, the research arm of financial services giant Citigroup Inc. (NYSE: C), said that shares of the builders may be poised for a rally.

Also seeing its fortunes rise is micro-cap company Tarragon Corp. (Nasdaq: TARR), following news before the opening that Fannie Mae will reinstate $79.6 million in loans to the New York-based homebuilder and real estate developer.

The Russell 2000 (NYSE: IWM) fell for the second consecutive day while the Dow posted a slim gain on news of bad economic data. The small-cap index lost 2.80 points, or 0.35%, to 803.00. The Dow Jones Industrial Average (INDU) moved up 13.59 points, or 0.14%, to 13,778.65.

The bears overpowered the bulls today following the release of reports that showed a tiring U.S. consumer and once again exposed the ongoing slump in the U.S. housing sector.

Total existing-home sales fell a more-than-expected 4.3% to a seasonally adjusted annual rate of 5.50 million units in August, the National Association of Realtors reported after the start of trading. That’s the sixth drop in as many months. Economists were projecting a more modest decline to a pace of 5.55 million from a level of 5.75 million in July.

Total housing inventory added 0.4% to 4.58 million homes, which at the current pace of sales represents a 10-month supply. In July, the supply of available homes stood at 9.5 months.

“Lower sales contributed to a buildup of unsold inventory,” said NAR senior economist Lawrence Yun in a press release.

The Russell 2000 (NYSE: IWM) is down and the Dow (INDU) is flat following news of disappointing economic data.

At 10:52 a.m. ET, the small-cap index had shed 4.65 points, or 0.58%, to 801.15. The Dow Jones Industrial Average was up 9.59 points, or 0.07%, to 13,768.65.

The slump in the U.S. housing sector rages on and the American consumer is losing his willingness to spend, according to statistics released this morning.

Total existing-home sales fell a more-than-expected 4.3% to a seasonally adjusted annual rate of 5.50 million units in August, the National Association of Realtors reported after the start of trading. Economists were projecting a more modest decline to a pace of 5.55 million from a level of 5.75 million in July.

“The unusual disruptions in the mortgage market, including a significant rise in jumbo loan rates, resulted in a fairly high number of postponed or cancelled sales,” said NAR senior economist Lawrence Yun in a press release.

The inventory of unsold homes also increased.

Lennar Corp. (NYSE: LEN), the second largest U.S. homebuilder, illustrates the dire state of the housing sector.

The Russell 2000 (NYSE: IWM) futures are slightly lower and the small-cap index is likely to stumble due to bad housing news.

Stocks are poised to open in negative territory following news that Lennar Corp. (NYSE: LEN), the second largest U.S. homebuilder, reported a third-quarter net loss. The Miami-based company suffered a loss of $513.9 million, or $3.25 a share, compared with a profit of $206.7 million, or $1.30 a share, a year earlier.

CEO Stuart Miller blamed the deteriorating U.S. housing market for the negative result.

Investors will be paying attention to data on existing home sales for August, set to be released at 10 a.m. ET, with economists widely expecting the numbers to show a monthly decline.

Elsewhere, U.S. retail sales fell 1% for the week ended Sept. 22, according to the International Council of Shopping Centers Inc. and UBS Securities LLC. That’s a worrying sign that consumer spending, which makes up about 70% of gross domestic product, has slowed due to the high cost of gasoline and never-ending housing slump.

The Conference Board’s index of consumer confidence will be released at 10 a.m. ET, with observers expecting a decline.