Tag - Ngls

Small-cap stocks extended the rally into midday trading, powered by ideas recent government plans to pour billions of dollars into banking institutions, while mopping up toxic debt with taxpayer coffers would right the ship in equities and avert an even deeper global economic downturn. Other Market Watch highlights today include:

• Financial stocks are among the best performers.
• The poorest performers were real estate investment trusts, homebuilders and regional banks.
• Crude oil prices are up nearly $4 a barrel, gaining a lift from the rally in equity markets around the world.
• Year to date the Russell index is off 31.8%, seven percentage points less than the S&P 500's 38.8% decline.
• Much of the hope for a bottom is tied to a thaw in lending practices and the credit market is closed today for the Columbus Day holiday.

Small Cap Gainers:

• Targa Resources Partners (Nasdaq:NGLS) shares spiked 30% after the natural gas company said it will buy back $50 million in shares.
• Shares of GTx (Nasdaq:GTXI) soar 30% after the biopharma firm says phase II clinical trial for cancer induced muscle loss succeeded.
• Tesoro (NYSE:TSO) issues third-quarter earnings guidance above the Street. Shares surge 22%.
• A-Power Energy (Nasdaq:APWR) jumps 24% on reaffirmed third-quarter . . .

The Russell 2000 (NYSE: IWM) and Dow lost big today as news of disappointing earnings and residual credit fears scared investors. The small-cap index suffered the biggest loss of the major U.S. indices, falling 26.24 points, or 3.18%, to 798.79. The Dow Jones Industrial Average (INDU) retreated for the fifth time this week, letting go 366.94 points, or 2.54%, to 13,522.02.

On a year-to-date basis, the Russell 2000 has increased 1.44%, while the Dow has added 8.34%.

The Russell 2000 futures were flat before the start of trading but the index opened in negative territory on news that Charlotte, N.C.-based Wachovia Corp. (Nasdaq: WB), the fourth largest U.S. bank, reported a 10% decline in its third-quarter profit due to difficult credit market conditions.

The bank also said that that it recorded a provision for credit losses of $408 million, about four times the level during the same three months of 2006.

The news came as an unpleasant reminder that the turmoil in the subprime mortgage sector, which peaked during summer months, is still relevant and capable of spreading shockwaves throughout the financial sector.

The subprime mortgage sector started bleeding earlier this year after U.S. housing prices went into reverse in the second half of 2006. The ongoing housing recession has been identified by observers as the biggest risk to the economy.