Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):
SMALL STOCKS: Micrel and Yankee Candle Fall As Syntax-Brillian Soars 37%
Summary: Small stocks fell yesterday on a mix of geopolitical concerns and weak earnings reports. Leading the way were the Russell 2000 index of small-caps and the Standard & Poor's SmallCap 600 index which fell 1.9% and 1.7% respectively. In sector news, chip stocks tumbled, giving up their gains of the previous session. Among small caps, Asyst Technologies (ASYT) slid 6.2% and Micrel (NASDAQ:MCRL) lost 5.9%. Several small biotech stocks did poorly as well: Savient Pharmaceuticals (SVNT) fell 4% while Onyx Pharmaceuticals (NASDAQ:ONXX) declined 2.6%. In terms of individual performers, Yankee Candle (YCC) tumbled 13%, the NYSE's biggest decline, after citing weaker-than-expected performance; Secure Computing (SCUR) plunged 38% after lowering their quarterly earnings forecast; and Tut Systems (TUTS) entered a freefall that left shares down 39% after they announced second-quarter results would fall below earlier guidance. One of the few big gainers was Syntax-Brillian (BRLC) which shot up 37% on expectations fiscal fourth-quarter revenue will come in at or above the high end of its previous projections.
Comment on related stocks/ETFs: Syntax-Brillian (BRLC) is the one bright spot in the TV industry. Its press release said it was raising guidance today for Q2, but note that its gross margins are still expected to be only 10-12%.