US SMALL/MIDCAPS-Stocks give up early gains; Wilmington drags

By Chuck Mikolajczak

NEW YORK, Nov 1 (BestGrowthStock) – Mid- and smallcap stocks pulled
back from early highs on Monday, as a plunge in Wilmington
Trust Corp overshadowed an early boost from data showing
improvement in industrial activity.

M&T Bank (MTB.N: ) snapped up troubled midcap Wilmington
Trust Corp (WL.N: ), a smaller U.S. regional bank and wealth
manager, which sold itself at a bargain price after facing
soaring loan losses and reporting its sixth straight quarterly
loss. For details, see [ID:nSGE6A00EV]

Wilmington shares plunged 42.2 percent to $4.11.

“People choose their price points for a reason,” said
Lawrence Creatura, portfolio manager at Federated Clover
Investment Advisors in Rochester, New York.

“The pricing of that deal indicates that there may be some
concerns within the balance sheet that were not previously well
understood.”

Stocks initially rose after data from the Institute of
Supply Management showed growth in the manufacturing sector
increased in October, while the Commerce Department said
construction spending in the United States unexpectedly rose in
September. [ID:nN01133257]

The data boosted industrials, materials and energy related
stocks and pushed the S&P MidCap 400 index to its highest
intraday level since April 30.

Smallcap Advanced Energy Industries Inc (AEIS.O: ) tumbled
10.9 percent to $12.79 after the company posted third-quarter
earnings that missed analyst expectations and forecast
fourth-quarter earnings below the Wall Street estimate.

Fellow smallcap Drew Industries Inc (DW.N: ) lost 7 percent
to $19.59 after the maker of components for recreational
vehicles and homes reported third-quarter results that missed
analyst estimates. [ID:nSGE69R0GT]

This week marks the busiest week for smallcap earnings,
with 723 companies from the Russell 2000 index (.RUT: ) and 101
from the S&P MidCap 400, according to data from Credit Suisse.

“This week is going to have at least four different sources
of uncertainty, the Fed, the election, economic reports and
company earnings,” added Creatura.

The S&P MidCap 400 index (.MID: ) edged up 0.2 percent while
the S&P SmallCap 600 index (.SML: ) dipped 0.2 percent. In
comparison, the benchmark S&P 500 (.SPX: ) added 0.4 percent.

US SMALL/MIDCAPS-Stocks give up early gains; Wilmington drags