Tag - Pei

The Russell 2000 (NYSE:IWM) closed up 6.7% today, thanks to the Fed’s decision to cut the key interest rate to the lowest level on record. Some of today’s small-cap gainers are Genworth Financial (NYSE:GNW), The Pennsylvania Real Estate Trust (NYSE:PEI) and Terra Industries (NYSE:TRA).

Other Market Watch highlights today included:

• The housing starts report came out at an annualized rate of 625,000 units, which was well below the forecast of 730,000.
• Housing starts tumbled 18.9%, the largest drop since March 1984 and the lowest unit rate on record.
• The CPI came in at -1.7%, which was even lower than the -1.2% projection, but not a surprise given steep declines in energy costs. 
• Homebuilder shares retain a potential bottom on long-term charts and were back on an upside tilt today after sinking on Monday.
• Another clear source of strength today came from insurance stocks, with the S&P Insurance Index climbing throughout the day.
• The Fed cut its target for the key interest rate to the lowest level on record and promised to use "all available tools" to combat the severe financial crisis and possible prolonged recession.

Small Cap Gainers:

• Small-cap firm Genworth Financial Inc. soared some 25%, climbing to the highest point since early November. See (NYSE:GNW).
• The Pennsylvania Real Estate Investment Trust jumped 22% on news that the company completed a financing deal. See (NYSE:PEI). 
• Terra Industries Inc. rallied 19% as the fertilizer company also . . .

Small-cap stocks opened solidly higher, boosted by a positive reaction to key profit reports and optimism ahead of the FOMC meeting this afternoon. Financial and banking shares were on the mend today after being noticeably weak in recent days, helping to counter any dread from this morning’s gloomy housing starts report. Some of today's small-cap gainers are The Pennsylvania Real Estate Investment Trust (NYSE:PEI), Terra Industries (NYSE:TRA) and Brandywine Realty Trust (NYSE:BDN).

Other Market Watch highlights included:

• Crude oil prices were on the rise this morning, up about $1.30 per barrel ahead of the open, which should provide a boost to energy stocks.  
• It is widely expected that the Fed will slash another 50 basis points off the Fed funds rate today, lowering the rate to 0.50%.  
• Small-cap stocks opened solidly higher, boosted by a positive reaction to key profit reports and optimism ahead of the FOMC meeting this afternoon.  
• Even though energy markets were on firm footing this morning, industrial metals were lower, including copper, lead, tin and nickel. 

Small Cap Gainers:

• The Pennsylvania Real Estate Investment Trust jumped 12.1% on news that the company completed a financing deal. See (NYSE:PEI).  
• Merrill Lynch upgrades a bevy of fertilizer stocks including Terra Industries, which is 10% higher on the news. See (NYSE:TRA).
• Brandywine Realty Trust up 7% after announcing a Q4 2008 dividend last week. See (NYSE:BDN).   
• Macerich inks Mervyns tenants, lands $250M loan; shares climb 6%. See (NYSE:MAC).  

Small Cap Losers:

• Tech company Stec lowers Q4 revenue view, shares fall 15% in pre-market. See (Nasdaq:STEC).  
• Cabot Corporation "repositioning" in light of weaker demand; shares tumble 10%. See (NYSE:CBT). 
• Monolithic Power Systems lowers guidance below estimates; shares dip 4% in pre-market. See (Nasdaq:MPWR).  
• Heelys down 4% in pre-market on very light volume. See (Nasdaq:HLYS).

Small-cap stocks opened solidly higher, boosted by a positive reaction to key profit reports and optimism ahead of the FOMC meeting this afternoon. Financial and banking shares were on the mend today after being noticeably weak in recent days, helping to counter any dread from this morning’s gloomy housing starts report. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 8.22, or 1.82%, at 460.78.

The housing starts report came out at 625,000 units, well off the projected pace of 730,000. What’s more, the percentage decline was a whopping 18.9%, the largest drop since March 1984 and the unit rate was the lowest on record. Clearly, these are awful numbers … bulls might argue this is the bottom, but there is no sign of stabilization yet. The dreadful housing starts report appeared to take some starch out of pre-market index gains. CPI data also came out this morning, with the headline number down 1.7%, which was below the forecast of minus 1.2%. The CPI data were expected to be down with sinking energy costs and weren’t much of a factor for the market.

Now that housing starts and CPI are out of the way, economic watchers will focus on this afternoon’s FOMC statement. It is widely expected that the Federal Reserve will slash another 50 basis points off the Fed funds rate, lowering the rate to 0.50%. The big key will be the language accompanying the statement, as market watchers look for signs that the Fed will explore other options to lower rates beyond the Fed funds target. However, don’t completely discount a potential surprise on the rate cut announcement: this morning, Fed funds futures were actually pricing in a 68% chance for a 75-bp rate cut, and there were some analysts calling for the Fed to go ahead and just put the rate at zero, since they appear to be headed that way anyhow.

On the profit front, Best Buy Co. Inc. (NYSE:BBY) smashed the estimate, . . .