Tag - Ustr

Small-cap stocks edged slightly lower in choppy early trade, with a downward spike in Europe bank stocks throwing a little cold water on a mild pre-market rise. Support stems from upbeat psychology as investors anticipate final formal approval today on a $789 billion stimulus spending plan. A dour reading on sentiment also played into the cautious early tone. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.05, or 0.23%, at 449.37.

A sudden freefall in Lloyds Banking Group this morning sparked a pullback off pre-market highs in stock index futures and pulled down sentiment into the U.S. stock market open. At one point, Lloyds was approaching 40% losses after saying that they would post a bigger loss than expected, which sparked spillover selling into Barclays and Royal Bank of Scotland. The volatility in Lloyds was severe, with the stock bouncing back to a 7% loss by the U.S. open. U.S. bank stocks were down about 3% shortly after the open, serving as a primary drag on the overall market indices.

The University of Michigan consumer sentiment survey came in at 56.2, which was well below the forecast of 61, and which appeared to trigger a mild selling extension in the stock market. A sub-index of the report on consumer expectations tumbled to the lowest level since May 1980.

The Obama Administration is looking at establishing a program to help subsidize mortgage payments, which would presumably stem the tide of foreclosures. That news helped spark a late recovery move in stocks Thursday and now faces deeper scrutiny by market watchers today and over the weekend.

Australian lawmakers passed their own stimulus spending program, overcoming some political hurdles that stalled passage earlier this week. The plan calls for $28 billion in spending stimulus projects, joining the U.S., China and other countries . . .

Small-cap stocks staged an impressive rally into midday trading, bolstered by signs of thawing in the credit market freeze, month-end bargain hunting and a renewed appetite for riskier market bets amid hope that the October collapse in equities has already priced in the worst of the economic news. Today’s small-cap gainers are Delta Petroleum (Nasdaq:DPTR), US Airways Group Inc. (NYSE:LCC) and China Eastern Airlines Corp. Ltd. (NYSE:CEA).

Other Market Watch highlights today included:

• On the radar screen for this afternoon’s trading is an appearance by Federal Reserve Chairman Ben Bernanke, who will talk about the mortgage market and the economy.  
• Looking ahead to next week, the market will get a douse of several key economic indicators, including the big employment report a week from today. 
• Today's reports on personal income, the employment cost index and consumer sentiment were rather tame and clearly overshadowed by enthusiasm that October is coming to an end.  
• Inter-bank lending rates have tumbled to the 3% zone, down some 14 consecutive trading sessions, and well off the peak above 5% at the beginning of October.  
• The top-performing sector so far today has been casinos, followed up by homebuilders, semiconductor equipment, airlines, insurance brokers, construction materials and wireless telecoms.

Small Cap Gainers:

• Delta Petroleum up 10% on Kerkorian Plan to increase holdings. See (Nasdaq:DPTR).
• US Airways Group Inc. is rallying 11% and hit the highest price since March. See (NYSE:LCC).  
• China Eastern Airlines Corp. Ltd. gapped higher and soared 27%. See (NYSE:CEA).  
• United Stationers Q3 profit rises on higher sales, one-time gains. Shares are treading 17% higher. See (Nasdaq:USTR).  


Small Cap Losers:

• Protective Life Corp. down 20% on higher-than-average volume. See (NYSE:PL). 
• CommScope Q3 profit rises; sees Q4 revenue below consensus; cuts FY08 revenue outlook. Shares are slumping 26%. See (NYSE:CTV).  
• Flagstar Bancorp clocks a loss in 2008 Q3 results; shares dive 26%. See (NYSE:FBC).
• Sunrise Senior Living announces transaction has been terminated. Shares are down 34%. See (NYSE:SRZ).