Tag - Supx

Small-cap stocks edged lower, unable to maintain a mild opening gain as a jump in unemployment claims to 26-year highs cast a shadow over surging mortgage activity and better-than-feared durable goods orders. Commodities were struggling early today, with crude oil sinking and industrial metals slumping to four-year lows, which weighed on commodity themed stocks. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 2.26, or 0.48% at 466.37.

The weekly unemployment claims report came in at 586,000, which marks a new cycle high and is the highest in 26 years and which also was above the projection of 550,000. In addition, the four-week moving average was at 26-year peak, but the number of Americans remaining on unemployment insurance (known as continuing claims) came in at 4.37 million, which was slightly below projections and helped take some of the sting off the leap in headline claims.

The government is scrunching a bunch of data into a short time frame this week because of the holiday, and durable goods orders and personal income data came out this morning in tandem with the claims release. The durable goods report came out at minus 1.0%, which was much better than the forecast for a slide of 3.0%, and which helped tug stock index futures up off the lows. The personal income report came in at minus 0.2%, which was below the projection for no change.

Earlier this morning, the weekly MBA Mortgage Application Index jumped 48% to the highest point since July 2003 and the refinance sub-index soared 62.6% to the highest point since July 2004 (roughly corresponding with the housing boom peak). The surge in mortgage activity was powered by a decline in 30-year mortgage rates to 5.04%, the lowest level since June 2003. There is some hope that a resurgence in mortgage activity will help put a bottom in the moribund housing market and that the rise in refinance activity will free up consumer funds to help spending.

The Russell 2000 (NYSE: IWM) went through the roof today as a late rally in financial shares lifted all the major U.S. indices. The small-cap index advanced 21.86 points, or 3.26%, to 693.43. The Dow Jones Industrial Average (INDU) gained 298.98 points, or 2.50%, to 12,270.17.

On a year-to-date basis, the Russell 2000 has lost 9.48%, while the Dow has let go 7.50% and the S&P 500 is missing 8.84%.

Small-cap stocks outpaced their larger brothers today as speculation of more rate cuts fueled the late-session rally.

February fed funds futures overwhelmingly suggest that the U.S. Federal Reserve will vote to lower its target for the federal funds 0.75% during its two-day meeting starting Jan. 29. A reduction of at least 0.50% is seen as a sure bet.

On Tuesday, the Fed lowered the federal funds rate, the rate at which commercial banks make overnight loans to each other, to 3.50% from 4.25%.

Shares representing the financial sector were invigorated and freed themselves of the bears’ grasp. Among the few exceptions was consumer financial services provider First Cash Financial Services, Inc. (Nasdaq: FCFS), which issued a 2008 earnings guidance below analysts’ projections.

WSB Financial Group, Inc. (Nasdaq: WSFG), Hanmi Financial Corp. (Nasdaq: HAFC) and Wavecom S.A. (Nasdaq: WVCM) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage losers: