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

SMALL STOCKS: Deckers Rallies 17%; Rackable Retreats

  • Summary: Small-capitalization stocks surged and outpaced the overall market Friday after a weaker-than-expected report on U.S. economic growth helped soothe interest-rate jitters. That, coupled with lower oil prices on Friday, helped spur small stocks, which are generally tied to macro factors like broad interest rates and the overall energy environment. In terms of index performance, the Russell 2000 gained 2.09%; for the week, the index gained 4.2% and is up 4% for the year to date. The S&P SmallCap 600 added 1.96% as well; for the week, the index gained 3.7% and is up 3.1% for the year. Among individual performers, Deckers Outdoor (NYSE:DECK) surged 17% after boosting its full-year sales forecast to a range of $272 million to $278 million from $268 million to $276 million. Rackable Systems (RACK) plunged 39% after the provider of computer-server and computer-storage products reported declining sequential revenue and rising costs. Sierra Wireless (NASDAQ:SWIR) slid 22% after it issued third-quarter guidance that was well below analysts' expectations. Coinstar (CSTR) climbed 12% after the owner and operator of self-service coin-processing machines reported second-quarter earnings above Wall Street's expectations. Volcom (NASDAQ:VLCM) slid 29% after announcing its 3Q06 outlook would fall out well below analyst expectation. Genitope (GTOP) plunged 49%, Zones (ZONS) surged 31% and United Surgical Partners International (OTCPK:USPI) fell 17%.
  • Comment on related stocks/ETFs: For more on RACK's meltdown in after-hours trading Thursday night, see David Gordon's Rackable Systems' Meltdown: Shares Lose 40% of Their Value Overnight.