US SMALL/MIDCAPS-Profit outlooks, China rate hike drag stocks

By Chuck Mikolajczak

NEW YORK, Oct 19 (BestGrowthStock) – Small cap and midcap shares
fell on Tuesday after a disappointing outlook from Coldwater
Creek and a surprise interest rate increase from China hurt
commodity-related stocks. .

Midcap Coldwater Creek (CWTR.O: ) plummeted 35.3 percent to
$3.47 after the women’s apparel retailer forecast a surprise
quarterly loss as its fall merchandise assortment did not meet
expectations and key product categories failed to satisfy
customers. For details, see [ID:nSGE69H0MV] [ID:nSGE69I0HL]

Infinera Corp (INFN.O: ) tumbled 35.4 percent to $7.97 after
communications equipment maker posted a better-than-expected
profit for the third-quarter, but forecast a soft
fourth-quarter. [ID:nSGE69H0KC] [ID:nSGE69I0IM]

The disappointing outlook sank fellow suppliers of digital
optical networking systems, including midcap Ciena Corp
(CIEN.O: ), down 7.3 percent to $13.49 and S&P 500 component JDS
Uniphase Corp (JDSU.O: ), off 7.2 percent to $11.26.

“It’s a couple of numbers; a couple guided down,” said
Scott Billeaudeau, portfolio manager at Fifth Third Asset
Management in Minneapolis.

“In addition, it’s been a pretty nice move to the upside
going into this, so part of this is probably, ‘let’s take a
breather here’ as well.”

Commodity-related stocks lost ground after a surprise
interest rate hike from China sent the dollar higher and
short-circuited the recent surge in commodity prices.
[ID:nN19134544] [ID:nTOE69I08Y]

The S&P MidCap Energy index (.4GSPE: ) stumbled 3.1 percent,
weighed down by a 5.6 percent drop in Comstock Resources Inc
(CRK.N: ) to $22.87, and the S&P SmallCap Energy index (.6GSPE: )
dropped 2.6 percent, dragged down by a 5.9 percent drop in
Stone Energy Corp (SGY.N: ) to $15.82.

Small cap Century Aluminum Co (CENX.O: ) lost 7.8 percent to
$12.87 while midcap Carpenter Technology Corp (CRS.N: ) slipped
4.3 percent to $37.02.

“There has been such a giant run in this whole China thing.
This has been the engine of growth. China is not stupid either,
they know this could help them purchasing. These guys know how
to play the game,” added Billeaudeau.

The S&P MidCap 400 index (.MID: ) dropped 1.8 percent, while
the S&P SmallCap 600 index (.SML: ) declined 1.9 percent. In
comparison, the benchmark S&P 500 (.SPX: ) lost 1.7 percent.

(Editing by Kenneth Barry)

US SMALL/MIDCAPS-Profit outlooks, China rate hike drag stocks