Tag - Mf

Small-cap stocks ended the week with a whimper, pulled down by surging crude oil prices, an ongoing rout in financial stocks, sinking tech stocks and safe-haven money flow away from equities and into credit instruments. The Russell 2000 (NYSE:IWM) stumbled 12.10, or 1.64%, to 725.73, notching the second-largest one-day decline since June 6.

It’s probably no coincidence that the big decline exactly two weeks ago on June 6 also coincided with talk that Israel was developing plans to possibly attack Iran’s nuclear facilities, which sparked a rally in energy markets and also played into geopolitical tensions ahead of a weekend.

The reversal in crude oil prices meant that Thursday’s slide in energy markets was a very brief respite for consumer, airline and courier shares that have been mercilessly battered by soaring gasoline prices. The rise in crude oil was accompanied by a sharp decline in the U.S. dollar, which tumbled about 0.7% against both the euro and the Japanese yen.

Financial shares were under attack once again today following a downgrade in the outlook for banks by Merrill Lynch analysts. Citigroup (NYSE:C) was off 4.7%, Bank of America (NYSE:BAC) down 3.7% and Wachovia (NYSE:WB) off nearly 2%. Investment banks, brokerage firms and specialty trading houses were also under pressure, with JP Morgan (NYSE:JPM) down about 2%, Goldman Sachs (NYSE:GS) off 1.6% and Lehman Bros. (NYSE:LEH) down 1%. Small-cap firm MF Global (NYSE:MF) sank 22% and continues to reel in the face of analyst downgrades and slumping interest rate income from futures trades. Ironically, Merrill Lynch (NYSE:MER) itself was down 4.6%.

With the market taking a beating today and the crude oil market rising amid political concerns, the quarterly “quadruple witching” expirations shuffled into the background a little bit. That said, the market certainly was volatile today, be it from expirations or other factors. The NYSE said that short interest was at an all-time high, . . .

Small caps are taking a beating in Friday’s mid-session trading, as crude oil prices surged and credit jitters prompted a broad sell-off in the financial sector. At 12:04 p.m. ET, the Russell 2000 (NYSE:IWM) was down 10.85, or 1.47%, at 726.98.

Small-cap investors tried to rally in the third hour of trading but met resistance at the 730 notch. After the brief resurgence, the small-cap slide is continuing into the afternoon session.

Merrill Lynch (NYSE:MER) started off the selling frenzy after cutting its estimates for regional banks. Rival investment banks Goldman Sachs (NYSE:GS) and JP Morgan (NYSE:JPM) were both in the red in midday trading as well. MER is down 3.9%, GS has fallen about 1% and JPM is off 0.4%.

Crude oil futures have rebounded from the largest one-day decline in about three months. In recent trading, crude has climbed $3.29 to $135.22 a barrel. The rebound in crude prices was accompanied by a falling U.S. dollar, which is down against both the euro and the yen.

Broad market sectors attracting sellers today were airlines, computer storage devices, plastics and rubber, casinos, auto and truck manufacturers, audio and video equipment and computer peripherals. Sectors on the upside included school services, savings and loans banks, gold and silver and oil well services and equipment companies.

Small-cap stocks took a dive on the opening, pulled under water by yet another selling flurry in the financial sector, a recovery bounce in crude oil, declines overnight on international equities and safe-haven flow out of stocks into bonds. At 10:10 a.m. ET, the Russell 2000 (NYSE:IWM) was down 12.96, or 1.76%, at 724.87.

This morning’s whipping post for the financials was Merrill Lynch (NYSE:MER) and shares in the investment banking firm were down 5.2% shortly after the opening. The market seems to be rotating around various financial stocks, but the whole group is also being punished as investors shy away from the group amid the ongoing credit crunch. Rival investment banks Goldman Sachs (NYSE:GS) and JP Morgan (NYSE:JPM) were both in the red early today as well. Ironically, even as Merrill is a target for the bears this morning, their own analysts issued bearish news on several banks, forecasting dividend cuts and lowering price targets. Wachovia (NYSE:WB) was off 5% and Bank of America (NYSE:BAC) was down 4%.

During Thursday’s session, crude oil futures offered an olive branch to stock market bulls via the largest one-day slide in about three months, but the market for black gold rallied back some overnight, climbing above $136 dollars a barrel heading toward the U.S. stock market opening. There was some talk once again about Israel planning a strike against Iran’s nuclear facilities; those rumors were in the news back on June 6 when crude oil jumped.

The stiff bounce in crude oil was accompanied by a sinking U.S. dollar, which lost 0.7% against the euro and about 0.5% versus the yen. The sinking dollar also could support a wide range of other commodity markets heading into the weekend.

Stock markets around the world were on the defensive overnight, with Japan down 1.3%, Taiwan off 1.8%, Australia down 1.4%, India down 3.4%, Hong Kong down 0.2%, South Korea down 0.6%. China shares did bounce 2.7%, but that . . .

Shares of MF Global Ltd. (NYSE:MF) are plummeting ahead of the bell after Deutsche Bank reportedly slashed its price target on the broker of exchange-listed futures and options today to $11 from $17 per share.

Shares skidded 17.5%, or $1.50, on heavy volume to $7.05 ahead of the opening bell. For detailed price information and recent news stories about MF Global, click MF.   

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 are expected to push lower on the opening, pulled down by residual selling after Tuesday’s rout in the financial sector and by another batch of soft earnings leading into this morning’s open. The Russell 2000 (NYSE:IWM) was off about 0.7% in overnight trading, which would translate to an opening near 731.75.

Earnings news from large-cap firms ahead of the open ramped up overnight selling interest. Morgan Stanley’s (NYSE:MS) results were actually slightly better than the forecast, and although the stock was little changed immediately after the news in after-hours trading, the shares later turned into the red. Stock index futures were tugged lower by earnings news from FedEx (NYSE:FDX), which came in slightly below the forecast. The firm had a dreadful outlook for 2009, which sparked a 5% decline in the stock in after-hours trading and which tacked on about three more handles to the downside in S&P 500 futures.

Within the financial sector theme, shares in large-cap futures firm MF Global (NYSE:MF) tumbled some 15% overnight as revenue was below the forecast and the company said it would raise capital by selling convertible securities to pay down debt.

Crude oil futures were higher overnight, climbing to the $134.50-a-barrel range and will take direction from the 10:30 a.m. ET weekly inventory data, meaning the stock market could also take a turn for the better or worse at that time as well.

The MBA mortgage applications report came in at minus 8.8% and continues to be soft in line with the difficult housing situation and an uptick in rates. The market should be able to skate through the rest of today’s session without interruption from . . .

The Russell 2000 (NYSE:IWM) declined as news of an emergency sale of Bear Stearns spread fears of financial turmoil. The small-cap index fell 12.42 points, or 1.87%, to 650.48. The Dow Jones Industrial Average (INDU) gained 21.16 points, or 0.18%, to 11,972.25.

On a year-to-date basis, the Russell 2000 has shed 15.08%, while the Dow is down 9.74% and the S&P 500 has retreated 13.06%.

Stocks small and large opened significantly lower on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has purchased Bear Stearns (NYSE:BSC) for just $2 per share, according to an announcement on Sunday.

The buyout was unprecedented, as the U.S. Federal Reserve gave JPMorgan $30 billion in special financing to complete the deal and prevent further financial turmoil. Shares of Bear Stearns were worth over $170 a year ago, but the company was heavily involved in securities backed by subprime mortgages and was dealt a lethal blow by the housing downturn.

The Fed also lowered its discount rate, the rate at which it lends funds to commercial banks, to 3.25% from 3.50%. The central bank will hold a regularly scheduled policy meeting on Tuesday, with investors expecting a steep cut in its target federal funds rate.