SMALL/MIDCAPS-Weak outlooks push stocks lower
NEW YORK, July 29 | Thu Jul 29, 2010 2:25pm EDT
- Mid- and small-cap stocks fell on Thursday after a
round of disappointing earnings and weak forecasts provided
further evidence of a slowing economy.
S&P MidCap 400 index .MID lost 0.5 percent, while
the S&P SmallCap 600 index .SML shed 0.3 percent.
In comparison, the benchmark S&P 500 .SPX was off
Harsco Corp (HSC.N) dropped 13.6 percent to $23.20 after
the provider of products and services to metal producers
posted lower quarterly profit and cut its outlook.
midcap Kennametal Inc (KMT.N) lost nearly 1 percent
to $27.89 after the industrial toolmaker reported better-than-expected
profit but said fiscal 2011 earnings may come in below
two companies were among a string of industrials that
cautioned about the U.S. and global economies.
looking to have slower growth in the back half of the
year and so everyone -- whether you are a small or a
large company -- has to be moderating expectations.
That is fairly clear," said Shawn Hackett, president
at Hackett Advisors in Boynton Beach, Florida.
has been some recalibration of those valuations back
down to factor in a slower growth type of recovery."
Inc (CVD.N) tumbled 22 percent to $38.72 after the clinical
testing company said profit dropped 26 percent, matching
estimates, and cut its 2010 earnings view for the second
time, citing lower demand and profitability for its
early-stage drug research services.