US SMALL/MIDCAPS-Education, consumer shares take indexes lower

NEW YORK, Aug 13 (BestGrowthStock) – Small- and mid-cap stocks
fell on Friday for the fourth day in a row as education shares
were hurt by worries of tighter scrutiny and concerns about
consumer spending hurt discretionary companies.

Shares of for-profit educational institutions slumped with
the federal government planning to hire more investigators to
prevent fraud by for-profit colleges in such areas as student
financial aid. For details, see [ID:nN13204858] For a factbox,
see [ID:nSGE67B0NL]

The education department was also expected to release loan
repayment rates for individual schools later on Friday. Among
the laggards, Strayer Education (STRA.O: ) slipped 4.7 percent
to $200.01, while Career Education Corp (CECO.O: ) lost 4.1
percent to $18.79.

“Until you get the (details) out, whatever it may look
like, it’s hard near-term for people to feel comfortable. They
trade around the names and that gets you the volatility,” said
Tim Holland, co-portfolio manager of the Aston/TAMRO
Diversified Equity Fund in Alexandria, Virginia.

ITT Educational Services Inc (ESI.N: ) tumbled 7.2 percent to
$64.33 after RBC cut its price target to $78 from $100. The
stock earlier tumbled to its lowest intraday level since
October 2008. [RCH/US2]

Worries of increased regulatory reform has weighed on the
industry of late. Since hitting a peak for the year in
mid-April, the S&P education services index (.15GSPEDUS: ) has
dropped about 40 percent.

“When you have broad sell-offs like you get today and as
you’ve had for a while, if you’re so inclined, you can pick
through and find those that are better run and better
positioned,” Holland said.

Data showing tepid retail sales in July and disappointing
outlooks from bigger names, including Nordstrom (JWN.N: ) and
J.C. Penney (JCP.N: ), weighed on consumer shares. J Crew Group
(JCG.N: ) fell 4.1 percent to $32.62 and Ann Taylor Stores Corp
(ANN.N: ) shed 4.2 percent to $15.20. [ID:nN13180040]

The S&P MidCap 400 index (.MID: ) fell 0.6 percent, while
the S&P SmallCap 600 index (.SML: ) slid 1.3 percent. In
comparison, the benchmark S&P 500 (.SPX: ) ended down 0.4
percent.

It was the worst week in six for both indexes. For the
week, the mid-cap index lost 4.8 percent and the small-caps
dropped 6 percent.

Small-cap Red Robin Gourmet Burgers Inc (RRGB.O: ) slid
after the company reported a profit that missed expectations
and cut its 2010 outlook. Red Robin was down 5.4 percent at
$18.60. [ID:nSGE67A0ID]

Brinker International Inc (EAT.N: ) was off 3.7 percent to
$15.07 after Wells Fargo cut its rating to “market perform”
from “outperform”.

On the upside, Superior Industries International (SUP.N: )
jumped more than 9 percent after the aluminum wheel maker
swung to a profit in the second quarter. Superior was up 9.1
percent at $14.70. [ID:nSGE67C0FW]
(Reporting by Leah Schnurr; Editing by Jan Paschal)

US SMALL/MIDCAPS-Education, consumer shares take indexes lower