Small-cap stocks, along with the broader market, took a trip to the downside Wednesday. The Russell 2000 and the S&P SmallCap 600 both dropped about 1.7%.

Shares of The Pantry ( PTRY), a Sanford, N.C.-based operator of a convenience store chain, fell 25%, well below its 52-week low, to $16.43. The company forecast a second-quarter loss of between 24 cents and 30 cents a share, including a one-time charge of 23 cents. Analysts polled by Thomson Financial, who do not typically include one-time items, expect a profit of 17 cents a share.

Morgan Stanley ( MS) subsidiary MSCI ( MXB), which provides investment decision support tools, plummeted 10.7% to $27.51. MSCI announced that Morgan Stanley will sell up to 28 million shares of MSCI class A common stock, par value a penny a share and said that Morgan Stanley may divest completely. MSCI also reported first-quarter financial results that showed a 17.1% drop in net income to $17.9 million, or 18 cents a share.

Meanwhile, Arctic Cat ( ACAT), a Thief River Falls, Minn., maker of snowmobiles and ATVs, saw shares lose 6.7% to $6.88. Arctic Cat announced that fourth-quarter revenue would range from $167 million to $169 million and EPS would be between breakeven and a loss of 8 cents. The Street is looking for EPS of 23 cents on revenue of $198.9 million.

Gladstone Capital ( GLAD), a McLean, Va., public investment firm, tumbled 7.7% to $17.82. The company declared monthly dividends of 14 cents a share for April, May and June. Its board also appointed Gresford Gray as chief financial officer. Stifel Nicolaus initiated coverage of the stock with a hold rating.

On the winning side, Los Angeles restaurant chain California Pizza Kitchen ( CPKI) climbed 5% to $14.99. The company guided for a first-quarter profit of 7 cents to 8 cents a share, an outlook that was ahead of the consensus estimate of a nickel a share.

Alberta, Canada-based biotech company Oncolytics ( ONCY) jumped 13% to $2.06. Oncolytics announced positive interim results for a trial of its U.K. combination Reolysin and carboplatin/paclitaxel, a treatment for head and neck cancer.