Small-cap stocks tried to rally early Tuesday, but soon found themselves back in losing territory along with the major indices. The Russell 2000 slipped 2.6% to 704.86, and the S&P SmallCap 600 likewise fell 2.6% to 365.17.
There were some winner's in the day's mixed trading. San Diego-based DivX (DIVX), which makes video compression software, jumped 9.1% to $14.01 after announcing it had inked a content distribution deal with Sony Pictures Television to offer downloads of Sony Pictures content to next-generation DivX devices. Terms of the deal were not disclosed.
On the other hand, things got ugly for skin rejuvenator Isolagen (ILE), whose share price withered away 73% to 65 cents on news that CEO Nicholas Teti will be pursuing other interests. CFO Declan Daly will be taking over his duties, while Teti will remain chairman of the board and a consultant.Meanwhile, shares of Centennial Communications (CYCL) lost 16% to $7.38 on earnings for its fiscal second quarter ended Nov. 30. The Wall, N.J., wireless and broadband provider posted continuing operations income of $1.5 million, or a penny a share, vs. $1 million, or a penny a share, in 2006. Analysts polled by Thomson Financial were expecting 6 cents a share. Finally, bond insurer Security Capital Assurance (SCA) dropped 24% to $2.41 as Morgan Stanley, citing turmoil in the bond market, cut profit forecasts for the Bermuda-based company and fellow insurers Ambac (ABK) and MBIA (MBI).