Small-cap stocks rallied along with the broader market Thursday. The Russell 2000 gained 1.8% to 675.81, and the S&P SmallCap 600 added 1.7% to 359.45.

Oritani Financial ( ORIT - Get Report), a holding company for Oritani Savings Bank based in Washington Township, N.J., jumped 18% to $14.74. Oritani announced it was terminating its merger agreement with Greater Community Bankcorp ( GFLS). Oritani stated that the move was in the best interest of shareholders. Sterne Agee upgraded the stock to buy from hold.

Meanwhile, Shoe Carnival ( SCVL - Get Report) shares climbed 16% to $13.90 on fourth-quarter earnings of $1.1 million, or 9 cents a share, vs. $5.1 million, or 37 cents a share, a year ago. The most recent quarter was shorter than the year-ago quarter by one week. Analysts polled by Thomson Financial were looking for EPS of 7 cents.

Seacaucus, N.J.-based retailer Children's Place ( PLCE - Get Report) saw shares rise 12% to $21.94 on news that Disney ( DIS) is set to buy The Children's Place's Disney Store chain.

On the losing side, Borders ( BGP) plummeted 39% to $4.37 after announcing that it's looking to sell all or part of itself. The struggling Ann Arbor, Mich.-based bookseller also suspended its quarterly dividend.

Also falling, Matrix Services ( MTRX - Get Report) lost 5.5% to $16.23 after the Tulsa, Oklahoma provider of construction repair and maintenance services announced that Chief Financial Officer George Austin has resigned effective March 31 to pursue other opportunities. Kevin Cavanah, the company's vice president of accounting, will serve as CFO until the company replaces Austin.

Finally, PetMed Express ( PETS - Get Report), which does business as 1-800-PetMeds and sells medicine for dogs, cats and horses, lost 5.3% to $11.71. Cannacord Adams initiated coverage on the stock with a sell rating.