Updated from 12:46 p.m. EDT with new stock prices

Small-cap stocks rallied Friday as positive earnings reports from several key players sent the broader market higher. The Russell 2000 climbed 1.8% to 720.65, and the S&P SmallCap 600 added 1.7% to 380.06.

Online closeout retailer Overstock.com ( OSTK) jumped 31.2% to $18.37. The Salt Lake City firm narrowed its first-quarter loss to $3.9 million, or 17 cents a share, from $21.4 million, or 91 cents a share, a year ago. Analysts polled by Thomson Financial were looking for an EPS loss of 32 cents.

Shares of iGate ( IGTE), a Pittsburgh provider of information technology and offshore outsourcing services, tacked on 17.1% to $7.74. iGate reported a first-quarter profit of $7.4 million, or 13 cents a share, up from $4.3 million, or 8 cents a share, in the year-ago quarter. The Street was looking for 9 cents a share.

Banking services purveyor United Community Financial ( UCFC), based in Youngstown, Ohio, saw shares rise 12.9% to $7.68. The company reported first-quarter profit of $4 million, or 14 cents a share, vs. $4.7 million, or 16 cents a share, in 2007. CEO Douglas McKay said the company is making organizational changes to deal with a slowing economy and weak housing market.

Meanwhile, shares of SiRF Technology ( SIRF), a San Jose, Calif., maker of GPS technology, surged 15.4% to $6.31 on news that the company's CEO, Michael Canning, resigned effective immediately. SiRF founder and Chairman Diosado Banatao will serve as interim replacement.

On the losing side, specialty minerals company Amcol ( ACO) shares dropped 9.2% to $29.98. The Arlington Heights, Ill., company announced income of $8.6 million, or 28 cents a share, vs. $10.8 million, or 35 cents a share, in the year-ago period. The Street was looking for 37 cents a share.

Also losing ground, Horizon Lines ( HRZ), a Charlotte, N.C.-based container shipper, stumbled 3.1% to $14.25. The company announced it is subject to an antitrust investigation relating to its pricing practices for ships operating in the Puerto Rico trade.

Finally, Flint, Mich.-based Citizens Republic Bancorp ( CRBC) fell 11.1% to $10.95. Ratings agency Fitch said it was considering a downgrade of the company's issuer-default rating after Citizens Republic announced disappointing earnings shortly before the close Thursday.

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