The Wall Street Journal-20080206-Corus Bankshares Falls 15-- Simpson Manufacturing Sags
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Industrial stocks took the brunt of the selling in the small-cap market during yesterday's rout.
AAR Corp. slid $2.61, or 8.6%, to $27.90, while Simpson Manufacturing fell 2.44, or 8.6%, to 25.99, both on the New York Stock Exchange.
The Russell 2000 index of small-capitalization stocks fell 21.88 points, or 3.02%, to 701.58. The Standard & Poor's SmallCap 600 slid 10.72, or 2.82%, to 369.20, while the Nasdaq Composite Index tumbled 3.08%, or 73.28 points, to 2309.57.
As investors weigh the depths of a consumer-led slowdown, many on Wall Street turned their focus to retailers as two straight days of selloffs have already erased all of the gains of last week. And, with monthly sales figures due out for many consumer discretionaries on Thursday, many expect more weakness to come.
Retailer declines were led by Crocs, off 2.84, or 7.9%, to 32.93, and Zumiez, down 1.27, or 6.3%, to 19.02.
Much like the retailers, consumer-related fears also drove down many small banks, as a drop in credit quality can damp the prospects for smaller financials.
"There is a fear that there is going to be more problems in March and June for financials," said Christopher Marinac, research director at FIG Partners LLC, a bank research firm in Atlanta. "It's kind of like they have the flu right now. They'll get through it, but it's going to take some time."
Among small banks were Corus Bankshares, falling 1.90, or 15%, to 11, and Frontier Financial, off 1.69, or 8.2%, to 18.80.
Financial-services company SWS Group fell 1.10, or 7.4%, to 13.82. The Dallas firm agreed to acquire M.L. Stern & Co. and its Tower Asset Management unit from Pacific Life Insurance. After the closing bell, SWS posted a decline in its fiscal second-quarter earnings and revenue.
Retailer Charming Shoppes slid 37 cents, or 6.3%, to 5.48, after the Bensalem, Pa., maker of plus-size women's apparel said it will close about 150 underperforming stores and end its new Petite Sophisticate chain. In addition, the head of the company's retail business, Diane Paccione, has assumed the position of chief executive at DEB Shops.
Rainmaker Systems fell 2.49, or 41%, to 3.53. The Campbell, Calif., marketing-services provider said a "significant" client, Dell Marketing L.P., decided to end its relationship with the company, bringing the work in-house.
Corporate Express (NYSE) soared 2.11, or 33%, to 8.60, after Dutch newspaper De Financiele Telegraaf reported that the Dutch office- supply company was in talks to be acquired by Staples. Corporate Express denied discussions were taking place.
Corvel gained 1.73, or 6.9%, to 26.83, after the Irvine, Calif., health-care group posted a 56% jump in third-quarter earnings, citing improving results for all of its product lines.
SiRF Technology nose-dived 8.91, or 55%, to 7.36, after the San Jose, Calif., maker of chips for GPS devices posted fourth-quarter earnings and forecast first-quarter profit below Wall Street expectations.
Bucking the trend for home builders, Standard Pacific tacked on 36 cents, or 7.8%, to 4.96, on the NYSE. The Irvine, Calif., company's fourth-quarter loss widened to $440.9 million from $98.4 million on hefty impairment and tax-valuation charges. The company also said it has cash on its balance sheet, has reduced debt and expects a roughly $235 million tax refund.
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Jennifer Hodson and Dawn Wotapka contributed to this article.
