Tag - Quix

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 . . .

AirTran Holdings, Inc. (NYSE:AAI), Clayton Holdings, Inc. (Nasdaq:CLAY) and Quixote Corp. (Nasdaq:QUIX) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $750 million.

Cleveland BioLabs, Inc. (Nasdaq:CBLI), Hardinge Inc. (Nasdaq:HDNG) and The Standard Register Co. (NYSE:SR) are also among the top small-cap percentage gainers.

Here are Monday's biggest percentage gainers among small caps:

The Russell 2000 (NYSE: IWM) has recovered from earlier losses and is now above its starting position.

At 12:57 p.m. ET, the small-cap index had added 0.84 points, or 0.12%, to 699.74. The Dow Jones Industrial Average (INDU) was up 36.83 points, or 0.30%, to 12,218.96.

Stocks small and large have turned the corner despite a bearish start due to more credit problems stemming from the stagnating U.S. housing sector.

Insurer American International Group Inc. (NYSE: AIG) announced before the start of trading that it may have to write off billions in mortgage debt. The New York-based company said in a regulatory filing that it would need to change the way it values its credit default swaps involving collateralized debt obligations.

The Russell 2000 opened in positive territory but slipped within minutes.

Elsewhere, Sunnyvale, Calif.-based Yahoo! Inc. (Nasdaq: YHOO) reported before the opening that it will reject a $42 billion takeover bid from Microsoft Corp. (MSFT), arguing that the offer is too low. Analysts expect that Microsoft will sweeten its bid.

The small-cap index managed to rebound after falling to a level of 691 at about 10:15 a.m. ET, rising above the flat line at about 12:40 p.m. ET.