Small-cap stocks posted solid gains Friday, jumping ahead of the broader indices. The Russell 2000 and the S&P SmallCap 600 were both up about 1.9%, to 781.90 and 402.68, respectively. Deerfield Capital ( DFR) shares bounded 13.6% higher to $9.33 on news that the Chicago specialty finance company had completed its acquisition of Deerfield & Company LLC from Triarc Companies ( TRY). Deerfield paid Triarc and minority shareholders a total of about $75 million in five-year senior notes and converted preferred DFR stock. Shares of Triarc were up 2.2% to $8.54. Also gaining was CPI Corp ( CPY), shares of which jumped 11% to $23.39. The gain in share price was a recovery from Thursday's loss after the St. Louis, Mo.-based owner and operator of Sears Portrait Studios announced third-quarter earnings. The company posted a per-share loss of $1.57 vs. a loss of 15 cents a share in 2006, which CPI attributed to its acquisition of portrait brand PictureMe. Meanwhile, Avon Lake, Ohio's PolyOne ( POL) rose on a strong fourth-quarter outlook. The polymer materials maker forecast a consolidated sales increase of 5% to 7% over fourth-quarter 2006 in spite of what the company called a weakening construction market and increased raw material and energy costs. Shares popped 10% to $7.07. Among the day's big losers was Brush Engineered Materials ( BW). The Cleveland maker of beryllium, alloy and electronic products reported soft demand for magnetic media, which will negatively impact earnings per share in the fourth quarter. Although the company guided in its previously announced range of 50 cents to 60 cents a share, the affirmation resulted from a favorable litigation settlement that will boost EPS by about 25 cents. Brush Engineered shares slipped 5% to $37.42. Casual-dining outfit McCormick & Schmick's Seafood Restaurants ( MSSR) also dropped on lowered guidance. The Portland, Ore.-based firm expects revenue in the $98 million to $99 million range, down from previous guidance for revenue of $100 million to $102 million. Comparable-store sales are now expected to decrease 1.5% to 1.8%, down from previous guidance for an increase of 0.7% to 1.0%. The company does not expect to meet previous EPS guidance of 97 cents to $1. Shares sank 9% to $12.