Tag - Pir

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%.  

 

Blue Phoenix Solutions (Nasdaq:BPHX), Pier 1 Imports Inc (Nasdaq:PIR) and Anchor Bancorp of Wisconsin Inc (Nasdaq:ABCW) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: C&F  Financial Corp (Nasdaq:CFFI), Horizon Financial Corp (Nasdaq:HRZB), CoBiz Financial Inc (Nasdaq:COBZ), Taylor Capital Group Inc (Nasdaq:TAYC), Centrue Financial Corp (Nasdaq:TRUE) and FieldPoint Petroleum Corp (Nasdaq:FPP).

Here are the biggest percentage losers among small caps:

Small-cap stocks slipped into negative territory shortly after the open as a pullback in crude oil prices was offset by soft economic data and yet another soft tone in the financial sector. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was off 2.10, or 0.29%, at 728.62.

The Philly Fed survey came out at 10:00 a.m. ET and the headline figure came in at minus 17.1, which was well below the forecast for minus 10. The prices-paid index for the Philly Fed report was at the highest point since 1980. Also, at 10:00 a.m. ET, the leading indicators report came in just slightly better than the forecast, but the indicators data is somewhat dated, whereas the Philly survey is for June, so the market tends to react more to the Fed survey.

Before the opening today, weekly claims data came in slightly above the forecast at 381,000 and the four-week moving average for claims edged higher, which was a mild negative.

Health insurers were taking a beating this morning after Coventry Health Care Inc. (NYSE:CVH) lowered its outlook for the year. CVH shares tumbled 23% shortly after the open and pulled other stocks in the group down. WellPoint Inc. (NYSE:WLP) was off 5%, while Aetna Inc. (NYSE:AET) was down 4% and UnitedHealth Group Inc. (NYSE:UNH) was down 9%. The Morgan Stanley Healthcare Payors Index was down 7.3% early today.

Lehman analysts downgraded some farm insurance firms, saying that crop insurers were facing the worst losses in 15 years as floods ravage the Midwest, reducing spring plantings. Within that group, Ace Ltd. (NYSE:ACE) was down just 0.1%, XL Capital Ltd. (NYSE:XL) was off 1.2%, PartnerRe Ltd. (NYSE:PRE) down 0.6% . . .

After a brief slump in morning trading spurred by the surge in crude prices, small caps have steadily risen during the Monday afternoon session. At 1:52 p.m. ET, the Russell 2000 (NYSE:IWM) was up 5.28, or 0.72%, at 738.89.

Crude oil have skyrocketed to more than $137 a barrel in afternoon trading. Investors reacted nonchalantly to Saudi Arabia’s announcement that it would increase production. In other commodity trading, the U.S. dollar is down against both the yen and the euro.

“Saudi Arabia has offered to increase oil production, as the world’s biggest oil exporter moves to address global fears that prices are spiraling out of control, according to the London Times. They said they would increase production by 200,000 barrels a day next month and this comes on top of a 300,000 increase in June,” Andy Busch, foreign exchange strategist for BMO Capital Markets, wrote in an email. “Together, the increases would take production above 10 million barrels a day in Saudi Arabia. Then, CNBC reports that they will have difficulty meeting this new level and a North Sea drill rig fire causes oil to go up.”

Earlier this morning, the NY Manufacturing Survey came in below expectations, which put the market on the defensive before the crude oil price spike delivered a knockout punch for stocks. The manufacturing report came out at minus 8.68 for June, well below the median forecast for a dip of 2, and eroding from last month’s figure of minus 3.23.

Lehman Bros. (NYSE:LEH) kept the financial sector on investors’ minds after announcing a $2.8 billion loss for the second quarter. Lehman’s early Monday announcement met its pre-announcement issued last week. In other large-cap financial news, American International Group (NYSE:AIG) was down some 1%, after announcing that the CEO will be replaced. Also on the large-cap front, General Electric (NYSE:GE) shares were off 0.5% after being downgraded overnight . . .

HireRight Inc (Nasdaq:HIRE), Chemgenex Pharm Ltd (Nasdaq:CXSP) and Republic First Bancorp Inc (Nasdaq:FRBK) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Kandi Technologies Corp (Nasdaq:KNDI), China Sky One Medical Inc (Nasdaq:CSY), Timberland Bancorp Inc (Nasdaq:TSBK), Amtech Systems Inc (Nasdaq:ASYS), Dynacq Healthcare Inc (Nasdaq:DYII) and Pier 1 Imports Inc (Nasdaq:PIR).

Here are the biggest percentage gainers among small caps:

Though major stocks are trading generally higher, small caps have continued sliding in midday Monday trading. A drop in crude oil prices and a better-than-expected report on pending home sales for April was not enough to rally small-cap stocks. At 1:37 p.m. ET, the Russell 2000 (NYSE:IWM) was down 4.11, or 0.56%, at 736.26.

Crude oil prices were off more than $2 dollar a barrel into midday trading, slipping to $136.34 a barrel in recent action. The price decline is a welcome sign following Friday’s historic surge in energy prices and national pump prices breaking the $4 barrier over the weekend.

Small-cap investors were encouraged by a better-than-expected report on April pending home sales in early trading, but gains were lost shortly thereafter. Pending home sales rose 6.3% in April, according to the National Association of Realtors. Analysts anticipated a dip of 0.3%.

A big acquisition deal among large-cap insurers also boosted investor psychology. Willis Group Holdings (NYSE:WSH), the world’s third-largest insurance brokerage, announced a deal to buy rival Hilb, Rogal and Hobbs Co. (NYSE:HRH) for $1.7 billion, news that sent HRH shares soaring some 44% on the opening.

In Monday midday trading, the U.S. dollar was up against the yen and the euro. The greenback slid during last week’s trading as European central bankers talked up rate hikes after Fed Chairman Ben Bernanke spoke about a desire to strengthen the dollar. In recent trading against the euro, the U.S. dollar was up to $1.5637.

Andy Busch, BMO Capital Markets’ foreign exchange strategist, said investors are watching oil and food prices as inflation indicators.

“In normal business cycles when the unemployment goes up, we focus on indicators that provide us insight into spotting a turnaround like housing or auto sales or durable goods,” Busch said. “However in the financial markets, we're focusing more on inflation from energy and food than on whether the economy has bottomed. So things . . .

Rimage Corp (Nasdaq:RIMG), AEP Industries Inc (Nasdaq:AEPI) and Spreadtrum Communications Inc (Nasdaq:SPRD) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

TASER International Inc (Nasdaq:TASR), Astro-Med Inc (Nasdaq:ALOT) and PAM Transportation Services Inc (Nasdaq:PTSI) are also among the biggest percentage losers.

Pier 1 Imports Inc (Nasdaq:PIR), Southern Community Financial Corp (Nasdaq:SCMF) and UFP Technologies Inc (Nasdaq:UFPT) were additionally included among the results.

Here are the biggest percentage losers among small caps:

Small-cap stocks were unable to sustain a mild opening upside brush as support from a dip in crude oil prices was countered by concerns over the credit crunch impact on financial companies. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.31, or 0.04%, at 740.05.

Crude oil prices were off some $3 dollar a barrel into the U.S. stock market open, slipping below $136 dollars a barrel, a welcome sign following Friday’s dramatic surge in energy prices and national pump prices breaking the $4 barrier over the weekend.

A mild uptick in equity index prices took place after April pending home sales were reported up 6.3%, well above the forecast for a dip of 0.3%.

A big acquisition deal among large-cap insurers also boosted investor psychology. Willis Group Holdings (NYSE:WSH), the world’s third-largest insurance brokerage, announced a deal to buy rival Hilb, Rogal and Hobbs Co. (NYSE:HRH) for $1.7 billion, news that sent HRH shares soaring some 44% on the opening.

The U.S. dollar was firm versus the yen into the stock market opening, gaining some 1.3% and up about 0.5% against the euro. The greenback took a big hit late last week, as European central bankers talked up rate hikes after Fed Chairman Ben Bernanke spoke about a desire to strengthen the dollar, which told foreign exchange traders that the world’s policy leaders were not in step with each other.

Stock markets around the world took a hit overnight, catching up with the big slide in U.S. equities from Friday. Japan shares were off 2.1%, Taiwan down 1.8%, Singapore down 1.9% and Bombay slumped 3.2%. Markets in Hong Kong, China and Australia were closed for holidays. However, European stocks were tame given the global rout in play.

The fact that European stocks were able to hold together relatively well overnight supported U.S. stocks this morning, as did the oversold condition from Friday’s big slide, according to Scott Fullman, director of derivatives with WJB Capital Group. “The market has been difficult to call because of volatility and the close ties to crude oil prices,” Fullman said in a phone interview with SmallCapInvestor.com. He suggested looking at trades to hedge against a potential downturn in stocks amid a . . .

The Russell 2000 (NYSE:IWM) closed lower on news that Wachovia Corp. (NYSE:WB) suffered a first-quarter loss. The small-cap index fell 2.09 points, or 0.30%, to 686.07. The Dow Jones Industrial Average declined 23.36 points, or 0.19%, to 12,302.06.

On a year-to-date basis, the Russell 2000 has shed 10.44%, while the Dow is off 7.26% and the S&P 500 is down 9.54%.

The bears and the bulls tangled but the bears were eventually victorious as investors reacted to news before the opening that Wachovia Corp. (NYSE:WB) swung to a first-quarter loss and will sell common and preferred stock to raise capital.

The Charlotte, N.C.-based bank has been relatively less exposed to the subprime mortgage mess than the other major financial institutions, leading to speculation that more players will report losses.

Banks were among the worst hit industry groups today. Among those . . .

The Russell 2000 (NYSE:IWM) jumped as investors reacted to news of a tech sector upgrade and a bullish earnings forecast from Wal-Mart Stores, Inc. (NYSE:WMT). The small-cap index rose 9.04 points, or 1.29%, to 707.42, snapping a three-day losing streak. The Dow Jones Industrial Average added 54.72 points, or 0.44%, to 12,581.98.

On a year-to-date basis, the Russell 2000 has let go 7.65%, while the Dow has declined 5.15% and the S&P 500 is missing 7.34%.

Small-cap stocks began the session with a brief dip into the red but quickly recovered as investors digested news before the opening that Wal-Mart raised its earnings estimate for the first quarter of fiscal 2009, partially due to strong sales of electronics.

The index moved into positive territory shortly before 10 a.m. ET and maintained those gains until the closing, reaching a session high of 710 just before 2 p.m. ET.

Also helping the bulls establish their dominance was news before the start of trading that the semiconductor sector has been upgraded by Banc of America Securities. The sector includes small-caps EMCORE Corp. (Nasdaq:EMKR) and San Jose, Calif.-based . . .

Pier 1 Imports, Inc. (NYSE:PIR), a Fort Worth, Tex.-based home furnishings retailer, reported before Thursday’s opening bell that it swung to a fourth-quarter profit of $13.7 million, or $0.16 per share, compared with a loss of $58.7 million, or $0.67 per share, a year earlier. Analysts expected earnings of $0.07 per share.

In Thursday’s morning trading, PIR shares are up 3.05%, or $0.21, at $7.10. For detailed price information and recent news stories about Pier 1 Imports, click PIR.

The Russell 2000 (NYSE: IWM) posted a large gain and outpaced the other major U.S. indices on good news from bond insurers. The small-cap index added 15.03 points, or 2.16%, to 710.46. The Dow Jones Industrial Average (INDU) climbed 189.20 points, or 1.53%, to 12,570.22.

On a year-to-date basis, the Russell 2000 has retreated 7.25%, while the Dow is down 5.24% and the S&P 500 has declined 6.58%.

Stocks ended the session with a surge on news that rating agency Standard & Poor’s reaffirmed the Triple A rating of bond insurers MBIA Inc. (NYSE: MBIA) and Ambac Financial Group, Inc. (NYSE: ABK).

The past couple of weeks had seen speculation that the companies will be downgraded, a move that will create problems for banks that have invested in bonds and probably lead to more losses due to writedowns on subprime mortgages.

Separately, several banks are planning a $3 bailout of Ambac Financial Group.

The two bond insurers had insured subprime-mortgage debt and are suffering the consequences of the ongoing stagnation in the U.S. housing sector.

Speaking of housing, the National Association of Realtors reported after the start of trading that sales fell 0.4% to an annualized rate of 4.89 million units, down from an upwardly revised 4.91 million units in December.

Investors actually took that as bullish news because economists were expecting to see a fall to an annual rate of 4.80 million units.

Pier 1 Imports, Inc. (NYSE: PIR) shares are climbing after the decorative home furnishings retailer revealed in regulatory filings that six executives bought about 2,386 shares through company purchase plans. The transactions took place on Friday and all shares were bought for $5.05 a piece.

CFO Charles Turner acquired 982 shares and Jay Jacobs, the executive vice president of merchandising, snapped up 891 shares. Other executives included David Walker, executive vice president of planning and allocations, and Gregory Humenesky, executive vice president of human resources, who purchased approximately 198 shares and 128 shares, respectively. Senior Vice President Michael Carter picked up 118 shares and Susan Barley bought 67 shares.

A company representative was not immediately available for comment.

In afternoon trading, PIR shares are up 12.72%, or $0.73, at $6.47. Over the last 52 weeks, shares have ranged from $3.26 to $9.06.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices rallied and ended the day in the green on news that the Fed may move to lower interest rates. The small-cap index added 8.09 points, or 1.14%, to 720.21, its second consecutive rise. The Dow Jones Industrial Average (INDU) advanced 117.78 points, or 0.92%, to 12,853.09.

On a year-to-date basis, the Russell 2000 has retreated 5.98%, while the Dow is down 3.10% and the S&P 500 has shed 3.27%.

Stocks small and large began the day in negative territory but rallied in the second half of the session and closed with solid gains.

“In light of recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary,” U.S. Federal Reserve chairman Ben Bernanke told an audience at the Women in Housing and Finance and Exchequer Club this afternoon.

Those words sparked speculation that the Fed is preparing to lower the federal funds rate at its two-day meeting starting Jan. 29. The bulls took charge of the session and pushed stocks higher.

The federal funds rate, the rate at which commercial banks make overnight loans to each other, currently stands at 4.25%.

The Russell 2000 (NYSE: IWM) rallied and posted gains for the fourth consecutive day on news that the American consumer remains strong. The small-cap index added 18.06 points, or 2.35%, to 785.60. The Dow Jones Industrial Average (INDU) climbed 205.01 points, or 1.55%, to 13,450.65.

On a year-to-date basis, the Russell 2000 is off 0.23%, while the Dow is up 7.83% and the S&P 500 has risen 4.79%.

The bulls completely dominated trading today on news that personal spending rose a better-than-expected 1.1% in November, according to the U.S. Commerce Department. The increase, the biggest in over three years, came as consumers responded favorably to holiday discounts offered by retailers.

Economists were expecting spending to increase 0.7% after a rise of 0.2% in October.

The news calmed fears that consumers will cut back on spending due to falling home prices and higher energy costs. Consumption is about 70% of gross domestic product.

However, Americans are still apprehensive about the economy and their personal finances.

A Reuters/University of Michigan consumer survey showed that consumer sentiment fell to 75.5 in December from 76.1 in November. That’s the lowest level since September 2005, when the country was dealing with the aftermath of Hurricane Katrina.

Economists had actually forecasted a slightly steeper decline to 74.5. Consumer sentiment measures whether or not consumers feel like spending money.

The Commerce Department also reported that personal income in November rose a lower-than-expected 0.4% following an increase of 0.2% in October.

In corporate news, Merrill Lynch (NYSE: MER) also contributed to the bullish sentiment. A report in The Wall Street Journal claims that the New York-based company will sell a stake of itself for a $5 billion cash injection from Singapore’s state investment company.

The Russell 2000 (NYSE: IWM) is in positive territory late in the session. At 3:01 p.m. ET, the small-cap index had climbed 4.03 points, or 0.53%, to 760.16. The Dow Jones Industrial Average (INDU) was up 11.79 points, or 0.09%, to 13,219.06.

The bears and the bulls are engaged in battle as investors struggle to make sense of news that suggests U.S. economic growth is slowing down.

Trading began with news that the U.S. economy grew at an annual rate of 4.9% during the third quarter, according to final figures released by the Commerce Department. The economy grew 3.8% in the second quarter.

But investors didn’t cheer too much, as it’s widely expected that economic growth will slow down in the fourth quarter of 2007 and into the first half of 2008.

Employment numbers released before the opening confirm forecasts of a slower fourth quarter.

The U.S. Labor Department reported that jobless claims for the week ended Dec. 15 increased 12,000 to 346,000 from a level of 334,000 in the preceding week. The rise is greater than projected and a sign that the labor market is cooling, which is consistent with a decline in economic growth.

Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are rising despite generally bearish economic and financial news.
 
At 10:45 a.m. ET, the small-cap index was up 2.14 points, or 0.28%, to 758.27. The Dow Jones Industrial Average (INDU) had climbed 20.49 points, or 0.16%, to 13,227.76.

The day began with news before the start of trading that the U.S. economy grew at an annual rate of 4.9% during the third quarter, according to final figures released by the Commerce Department. The economy grew 3.8% in the second quarter.

The third-quarter growth was the fastest pace in four years, but many economists projected that growth will slow down markedly in the fourth quarter and into the first half of 2008 as the credit squeeze and falling home prices take their toll.

As the economy slows, the labor market will probably cool. Statistics released before the opening confirm this.

The U.S. Labor Department said that jobless claims for the week ended Dec. 15 increased 12,000 to 346,000 from an upwardly revised level of 334,000 in the preceding week. The rise is greater than projected.

The four-week moving average, considered a more stable measure, showed an increase of 4,250 to 343,000. The level a week earlier was 338,750.

Elsewhere, investment bank Bear Stearns (NYSE: BSC) reported a quarterly loss of $854 million, or $6.90 per share, compared with net income of $563 million, or $4.00 per share, a year earlier.

The New York-based company was one of the first to feel the pain of the meltdown in the subprime mortgage sector when two of its investment funds went belly-up this summer.

Cost Plus, Inc. (Nasdaq: CPWM) shares are climbing in afternoon trading after a regulatory filing revealed after Friday’s closing that a Danish entrepreneur has taken a 14.9% stake in the home products retailer. Jakup Jacobsen, who already owns a sizeable investment in retailer Pier 1 Imports, Inc. (NYSE: PIR), owns the Iceland-based retail holding company Lagerinn and also is a global licensee for Swedish home-furnishings retailer Jysk.

In a filing with the Securities and Exchange Commission, Jacobsen revealed that he owns about 3.3 million shares for $41.9 million. As of Dec. 6, the company has approximately 22 million shares outstanding. Jacobsen also holds 1,213 Cost Plus shares for his child.

In today’s trading, CPWM shares were up 16.17%, or $0.71, at $5.10. Over the last 52 weeks, shares have ranged from $2.86 to $11.39.

The Russell 2000 (NYSE: IWM) edged out a gain while the Dow Jones Industrial Average (INDU) fell after news of weak earnings from Bank of America (NYSE: BAC) and Pfizer (NYSE: PPE) reminded investors that the subprime crisis is negatively impacting corporate earnings. The small-cap index added 0.14 points, or 0.02%, to 825.03. The Dow shed 3.58 points, or 0.03%, to 13,888.96.

Bank of America Corp.’s third-quarter net income plunged 32% due to write-downs on leveraged buyout loans and higher credit loss provisions. The firm’s third-quarter profit was $3.7 billion, or $0.82 per share, below analyst expectations of $1.06 per share and from $5.4 billion, or $1.18 per share, during the same period of 2006.

In other bearish news, Pfizer Inc.’s third-quarter net income plummeted 77%, due to a $2.8 billion charge related to the company exiting its insulin product Exubera. The company made the decision to exit Exubera because of intense competition from generic competitors. Pfizer’s third-quarter net income totaled $0.76 billion, or $0.11 per share, below Wall Street projections of $0.52 per share and from $3.36 billion, or $0.46 per share, a year earlier.

At 8:30 a.m., the U.S. Department of Labor said the number of Americans filing first-time applications for state unemployment benefits increased beyond economists’ expectations. For the week ended Oct. 13, the number of initial jobless claims rose to 337,000, above a forecast 315,000 and compared with 309,000 during the prior week.

Pier 1 Imports, Inc. (NYSE: PIR) shares are higher after the home furnishings retailer’s chief executive bought 40,000 shares, according to regulatory filings. CEO Alex Smith bought the shares of stock on Friday for prices between $4.85 and $4.92 each, according to a report filed with the Securities and Exchange Commission.

Inside trades made on the open market are required to be reported to the SEC within two business days of the transaction.

Last week, Pier 1’s share price dipped below $4.50, its lowest level in 10 years.

In afternoon trading, PIR shares are up 8.30%, or $0.45, at $5.87. Over the last 52 weeks, shares have ranged from $4.41 to $9.06.

Viacell, Inc. (Nasdaq: VIAC), China Natural Resources Inc. (Nasdaq: CHNR) and Tiens Biotech Group Inc. (AMEX: TBV) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

Pier 1 Imports, Inc. (NYSE: PIR) CEO Alex Smith said the company expects merchandising margins to improve during the next six months.

Although Smith declined to give guidance regarding the current third quarter and upcoming fourth quarter, he said on a midday conference call that the firm expects improved merchandise margins. However, he warned that third-quarter merchandise margins will be affected by the clearance of kids items.

The company is emphasizing lower-priced “impulse” items, which Smith said will reduce the impact of a market-wide decrease on more expensive home products. The chief executive believes it will not take much for the home products retailer to return to profitability.

“Home retailing spend in the United States is huge and we own only a very small part of it,” Smith said. “Very small movements in market share will equate to big sales improvements.”

Smith said he doesn’t believe the Federal Reserve’s recent interest rate cut will significantly affect the retailer’s efforts to return to profitability.

Improvements in competitiveness with other retailers and in conversion rates of existing customers will have a big impact on sales, he said. The company also plans to continue cutting costs in order to reach profitability. Pier 1 expects to save at least $100 million for the fiscal year ending early March 2008, the company said in a statement. The Fort Worth, Texas-based company plans to close 90 to 100 stores this fiscal year, leaving approximately 1,100 stores in the U.S. and Canada.

This quarter, the company introduced Halloween-related items for the first time and Smith said sales have been “strong.” Although inventory did not meet demand, Smith said back-to-school items sold well and the company will look to build on those sales next year. In general he said, the introduction of a greater number of entry-level priced items is “paying off.”

As part of a brand remarketing effort, the company is redesigning some stores, Smith said. Entryway areas of stores are being re-merchandised monthly to showcase merchandise in its monthly flyer, he said.

The company plans to continue spending between 4% and 5% of sales on marketing efforts, Smith said. The company recently re-introduced newspaper inserts in 24 major markets and is experimenting with website ads. The chief executive said the company has “stopped arbitrarily discounting” and now takes a more disciplined approach to markdowns.

Before the opening, Pier 1 reported second-quarter net sales of $344.6 million, slightly below Wall Street estimates of $345.3 million and down 7% from $370.7 million a year earlier. Pier 1’s net loss during the three months ended Sept. 1 was $43.4 million, or $0.49 per share, below views of $0.44 a share and compared with a loss of $73 million, or $0.84 per share, during the same period of 2006.

The firm’s operating costs and expenses during the second quarter were $385 million, down about 11% from $432 million in the year-ago period.

Pier 1’s margins were impacted by aggressive promotional discounting activities, the company said in a press release.

In midday trading, PIR shares are down 2.49%, or $0.16, at $6.27. Over the last 52 weeks, shares have ranged from $5.77 to $9.06.