Tag - Syut

Even though the market is still hammered for the year, today’s rally was a significant rise for the stock market, small caps included. The Russell 2000 (NYSE:IWM) rallied 7.6% for the second-largest one-day gain of the year. Today’s small-cap gainers are Dineequity (Nasdaq:DIN), Synutra International (Nasdaq:SYUT) and Quest Energy Partners (Nasdaq:QELP).

Other Market Watch highlights today included:

• The Conference Board reported today that consumer confidence plunged to 41-year lows. With two-thirds of the U.S. economy driven by consumer spending, a retrenched mood into peak holiday season purchasing activity is a troubling sign.
• Some of the renewed faith in the market on Tuesday could very well be tied to optimism ahead of the Federal Reserve’s announcement on interest rates Wednesday afternoon. 
• Inter-bank rates slipped again overnight for the twelfth straight trading day, which many hope is a sign that things are getting better in the ongoing credit crisis.
• The only areas of pronounced weakness today were household appliances, building products, health care facilities and homebuilders.
• Energy stocks were a clear source of strength for the stock market today, with the Energy Select Sector SPDR Fund jumping some 9%. 
• Despite the rise in energy shares, crude oil prices were skittish to join the buying party and closed down about $0.50 a barrel. 

Small Cap Gainers:

• Dineequity Inc. soared some 81% and has now charged some 192% off the lows from Monday. See (NYSE:DIN). 
• Synutra International, Inc. closed up 51% on light volume. See (Nasdaq:SYUT). 
• Quest Energy Partners declares cash distribution for Q3 2008. Stock price closed up 27.5%. See (Nasdaq:QELP). 
• Shares of ARM Holdings closed up 29% after the tech company reported . . .

Small-cap stocks pushed sharply higher Tuesday, snapping a string of five consecutive losing sessions as investors nibbled on beaten stocks for bargains, while still favoring large companies amid concerns about the economy and a fragile consumer psyche. The Russell 2000 (NYSE:IWM) rallied 34.15, or 7.62%, to 482.55 for the second-largest one-day gain of the year and is now down 37% for 2008, while the Dow is off 32% and the S&P 500 down 36%.

Even though the market is still hammered for the year, today’s rally was a significant rise for the stock market, small caps included. The Russell slipped to fresh move lows this morning and seemingly had no safety net in sight for another 12 handles and then to make matters worse the Conference Board reported that consumer confidence plunged to 41-year lows. With two-thirds of the U.S. economy driven by consumer spending, a retrenched mood into peak holiday season purchasing activity is a troubling sign. But the Russell overcame those concerns, rejected new move lows and closed in higher territory, which is a solid bullish reversal signal.

Some of the renewed faith in the market could very well be tied to optimism ahead of the Federal Reserve’s announcement on interest rates Wednesday afternoon. Fed leaders began a two-day meeting today and will announce a rate cut Wednesday at 2:15 p.m. ET, which should create even cheaper money for those firms with access to the Fed’s discount and Fed funds windows and hopefully move the market closer to unclogging credit lines. Along that line of thought, inter-bank rates slipped again overnight for the twelfth straight trading day, which many hope is a sign that things are getting better in the ongoing credit crisis.

Another source of bullish inspiration likely stemmed from a rise in global equities overnight, just a day after a severe selling frenzy pushed Japan markets to 26-year lows and deepened the slide in other markets around the globe. Of course, . . .