Tag - Thrx

Stocks are trading lower today as fearful investors brace themselves in anticipation of poor earnings reports that will begin being released this week.

At 1:40 pm ET, the Russell 2000 (NYSE:IWM) is down 14.55, or 3.19%, at 441.58, while the Dow is down 1.75% at 7,877.09 and the S&P 500 is down 2.09% at 824.93.

Small caps bucking the trend today include SumTotal Systems (Nasdaq:SUMT), up 47% after receiving a buyout offer. Legacy Reserves (Nasdaq:LGCY) is also climbing 29% today after receiving a proposal from Apollo Management to acquire all outstanding units of the company at a cash purchase price of $14 per unit.

******Time flies. Seems like earnings season just ended and yet here we are again. But first-quarter earnings kick off tomorrow with Alcoa (NYSE:AA).

Given how far the stock market has come over the last three weeks, you might think stock prices are set up for a fall as the reality of earnings dashes the enthusiasm that economic recovery is at hand.

Earnings will be bad. S&P 500 companies are expected to report that earnings are down around 35% from the year-ago quarter. And earnings were already falling then.

But don’t forget, stocks have been rallying because investors are anticipating an economic recovery. Though there have been some subtle signs that the economy is starting to improve, it hasn’t happened yet. In other words, nobody expects Q1 earnings to be good.

This earnings season is going to be all about guidance. What do companies see in the future? Will they be willing to say things look better? And more importantly, will any optimism be reflected in revenues and earnings forecasts?

That’s what investors will be focused on. I’d say it’s an “even money bet” whether stocks are higher or lower when earnings season wraps up a few weeks . . .

Stocks are fluctuating in Friday trading after investors looked past new unemployment data that showed unemployment jumped in March to its highest rate since 1983.

At 2:37 pm ET, the Russell 2000 (NYSE:IWM) is up 0.92% at 454.33, while the Dow is up 0.41% at 8,010.98 and the S&P 500 is up 0.79% at 841.

This morning oil prices rose above $53 a barrel, extending a rally fueled by market optimism that crude demand may rebound if the U.S. economic downturn bottoms out soon, while it was reported that U.S. banks that have received government aid are considering buying toxic assets to be sold by rivals under the Treasury's $1,000 billion plan to revive the financial system.

Small caps on the move today include Zale Corporation (NYSE:ZLC), which is up a whopping 51% after AM Best affirmed the jeweler’s financial strength rating.

******There's a lot going on today. The unemployment rate "surprisingly" hit 8.5%. President Obama knocked 'em dead at the G-20 meetings.

But the headline that caught my eye was "Bailed-out banks may buy toxic assets."
Believe it or not, Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and JP Morgan (NYSE:JPM), are considering using the Public-Private Investment Program to buy toxic assets from other banks, according to the Financial Times.

The Public-Private Investment Program is designed to encourage private investors to put money to work buying toxic assets from distressed banks. The Treasury and the Fed have offered loans to make the purchases less risky for the buyer. In essence, all a buyer has to do is put up a token amount of cash and the government will fund the rest. 
Yes, the plan reduces risk to the point that it's kind of like a free money giveaway - the taxpayer takes the risk, the subsidized investor makes the profit, assuming there is one. 

Personally, I'm not happy about the plan. But something has to be done to get the market for these toxic assets moving. Right now, there's a huge spread between the banks asking price and investors' bid. And nobody's budging. Throw in . . .

hhgregg Inc. (Nasdaq:HGG), Theravance Inc. (Nasdaq:THRX) and Hot Topic, Inc. (Nasdaq:HOTT) are among the new 52-week highs in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Optimer Pharmaceuticals Inc. (Nasdaq:OPTR), American Italian Pasta Co. (Nasdaq:AIPC), ArcSight Inc. (Nasdaq:ARST), Monro Muffler Brake Inc. (Nasdaq:MNRO), Neutral Tandem Inc. (Nasdaq:TNDM) and Ocwen Financial Corp. (Nasdaq:OCN).

Small-cap stocks pushed higher into mid-session, supported by gains in airlines, retailers and energy stocks. Small-caps were firm relative to large-cap stocks which were pulled down by big financials and tech companies.Today's biggest small-cap gainers are Theravance Inc. (Nasdaq:THRX), Targanta Therapeutics Corp. (Nasdaq:TARG) and General Motors (NYSE:GM).

Other Market Watch highlights included:

• The U.S. dollar was down more than 1% against the euro, which also helped the tone in commodity stocks.  
• Crude oil prices pulled higher amid talk of OPEC cuts and the hijacking of a big Saudi oil freighter.  
• Financial shares continue to be a drag on large-cap indices, with the Financial SPDR Fund off about 2%.  
• The market was sharply divided today, with strong gains seen for several sectors, but big losses offsetting in other sectors, which had cumulative effect of keeping index movement relatively stable. 

Small Cap Gainers:

• Theravance Inc. climbed 15% as the company said that a skin infection drug showed capability to fight deadly bacteria See (Nasdaq:THRX).  
• Targanta Therapeutics Corp. jumped 34% on news that an FDA committee will review the firm’s new application for skin infections. See (Nasdaq:TARG).  
• General Motors Corp. is up about 11% as the automaker continues to benefit from expectations that the U.S. government will extend a helping hand to carmakers. See (NYSE:GM).  
• First stores open at Developers Diversified Realty's Homestead Pavilion late last week; shares up 8% today. See (NYSE:DDR).

Small Cap Losers:

• Central European Media Enterprises Ltd. slumped 21%, tumbling to fresh 52-week lows following analyst downgrades last week. See (Nasdaq:CETV).  
• Horizon Lines down nearly 10% following last week's news that the company would cut fuel surcharges by 5.5%. See (NYSE:HRZ).  
• Allied Capital Corporation down 12% today after analysts said last week that the company faces liquidity issues. See (NYSE:ALD).  
• Live Nation Inc. treads 16.4% lower today as recession fears continue to hurt the ticket industry. See (NYSE:LYV).

Small-cap stocks pushed higher into mid-session, supported by gains in airlines, retailers and energy stocks. Small-caps were firm relative to large-cap stocks which were pulled down by big financials and tech companies. At 12:45 p.m. ET, the Russell 2000 (NYSE:IWM) was up 3.64, or 0.80%, at 460.16.

The market was sharply divided today, with strong gains seen for several sectors, but big losses offsetting in other sectors, which had cumulative effect of keeping index movement relatively stable. Financial shares continue to be a drag on large-cap indices, with the Financial SPDR Fund off about 2%, with Bank of America (NYSE:BAC) and Well Fargo & Co. (NYSE:WFC) both down in the 2% range.

Among airline stocks, UAL Corp. (Nasdaq:UAUA) was up 7% while US Airways Group Inc. (NYSE:LCC) was up 5% and Continental Airlines Inc. (NYSE:CAL) was up 4%. Crude oil prices pulled higher amid talk of OPEC cuts and the hijacking of a big Saudi oil freighter, but the move was relatively tame and not enough to spook airline stocks. The U.S. dollar was down more than 1% against the euro, which also helped the tone in commodity stocks. General Motors Corp. (NYSE:GM) was up about 11% as the automaker continues to benefit from expectations that the U.S. government will extend a helping hand to carmakers.

The bearish story on the technology front today was supposed to be Dell Inc. (Nasdasq:DELL) following an analyst downgrade, but the PC-maker was actually up 1% at midday, so the woes in tech stocks were linked to other concerns.

Individual small caps in rally mode today included Targanta Therapeutics Corp. (Nasdaq:TARG), which jumped 34% on news that an FDA committee will review the firm’s new application for skin infections. CTS Corp. (NYSE:CTS) rallied 22% as the electronics manufacturing firm climbs out of the 52-week lows set during last week’s slide. China Southern Airlines Co. Ltd. (NYSE:ZNH) was up 16%, bolstered by reports that Chinese airlines will seek government assistance. Theravance . . .

CTS Corp. (Nasdaq:CTS), Theravance Inc. (Nasdaq:THRX) and Texas Industries Inc. (Nasdaq:TXI) are among the biggest percentage gainers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Commonwealth Bankshares Inc. (Nasdaq:CWBS), ATA Inc. (Nasdaq:ATAI), China East Air Depository Receipt (Nasdaq:CEA), Blyth Inc. (Nasdaq:BTH), Mentor Corp. (Nasdaq:MNT) and PHH Corp. (Nasdaq:PHH).