Small Stocks Post Modest Gains, Centene and Spectrum Brands the Biggest Losers (CNC, SPC)

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

SMALL STOCKS: Meritage Homes, Centene Drop; Geo Group and Alphatec Advance

• Summary: Small stocks ended a four-session losing streak, but their gains were modest with the retail and housing sectors falling. The barometer Russell 2000 index of small-cap stocks gained 0.58% while the S&P's SmallCap 600 index added 0.41%. Still, retailers slid after large-cap Target (TGT) reduced its July sales forecast, raising fears about a slowdown in consumer spending leading small cap Cost Plus (CPWM) to shed 2.5% of its value. Housing small stocks also faired poorly after the National Association of Home Builders' index for sales of new, single-family homes fell to 39 in July from 42 in June, marking its lowest point since December 1991. As a result, Standard Pacific (SPF) dropped 2.8% while Meritage Homes (MTH) slipped 3.5%. In terms of individual performers, Centene (CNC) plunged 35% after lowering its 2006 forecasts -- the biggest percentage decliner on the NYSE. Molina Healthcare (MOH), another Medicaid managed-care company, fell 14%. Other big losers included China Techfaith Wireless Communication Technology (CNTF) which unloaded 14% of its value; and Spectrum Brands (SPC) which fell another 11% on top of an already steep 33% decline from the previous session. There were a few bright spots as well: SimpleTech (STEC) climbed 17% after the Santa Ana-based memory-products company announced that it expects to exceed its second-quarter guidance because of stronger-than-expected demand; Geo Group (GGI) added 19% after they raised their second-quarter earnings forecast.