US SMALL/MIDCAPS-Stocks fall on growth concerns

By Chuck Mikolajczak

NEW YORK, May 14 (BestGrowthStock) – Mid- and smallcap stocks fell
for the second straight session Friday pummeled by worries grew
that heavy euro zone debt loads and deficit-reduction plans
could stunt the global economic recovery.

After erasing losses suffered during last week’s violent
sell-off, stocks pulled back in the latter portion of the week,
but were still on track for weekly gains of over 4 percent.

“We got overbought so something had to cause us to pull
back –the euro crisis is it this time,” said Edward
Hemmelgarn, chief investment officer of Shaker Investments in
Cleveland.

Investors booked profits in sectors sensitive to global
growth, including industrial and materials stocks, as relief
over plans to curb the debt crisis in Europe waned, giving way
before concerns the plans could hinder growth. For details, see
[ID:nLDE64C1TS] and [ID:nEU]

“You have got to figure Europe is going to be slowing down,
at least temporarily, the quantitative easing they are going to
have to do will help in the long run, but it could take a
year,” said Edward Hemmelgarn, chief investment officer of
Shaker Investments in Cleveland.

The S&P MidCap Industrial index (.4GSPI: ) fell 3.2 percent
and the S&P SmallCap Industrial index (.6GSPI: ) lost nearly 3
percent. The S&P MidCap Materials index (.4GSPM: ) shed 3.7
percent and the S&P SmallCap Materials index (.6GSPM: ) slid 3.5
percent.

Midcap Netflix Inc (NFLX.O: ) dropped more than 7 percent to
$102 after the DVD rental company was downgraded by at least
three analysts, including a cut to “sell” from “neutral” by
UBS. [ID:nWNAB0723]

Smallcap O’Charley’s Inc (CHUX.O: ) tumbled 16 percent to
$6.55 after Raymond James lowered its rating on the stock to
“outperform” from “strong buy,” a day after the casual dining
chain posted disappointing first-quarter earnings.
[ID:nWNAB0888]

The S&P MidCap 400 index (.MID: ) and the S&P SmallCap 600
(.SML: ) both fell 2.8 percent. In comparison, the benchmark S&P
500 index (.SPX: ) lost 2.4 percent.

Stock Market Analysis

(Reporting by Chuck Mikolajczak; Editing by Theodore
d’Afflisio)

US SMALL/MIDCAPS-Stocks fall on growth concerns