The Standard & Poor's SmallCap 600 Index rose at midday Monday as markets were lifted by renewed talks between Microsoft Corp. and Yahoo Inc. and a report of leading economic indicators that showed the economy is likely still growing, albeit slowly.
The S&P SmallCap 600 Index rose 3.14 points to 395.30. The index tracks stocks with a market capitalization between $300 million and $2 billion. Small-cap companies make up about 3 percent of the total U.S. securities market, but are often cited as good investments due to their low valuations and potential to grow into big-cap stocks.
Shares of ScanSource Inc. posted the biggest jump on the index after Robert W. Baird's Reik Read upgraded shares of the electronic equipment maker to "Outperform" from "Neutral" in a note to investors. Read said the factors leading to its lower-than-expected third-quarter earnings, which it reported last month, were "temporary" and predicted room for growth for the stock. Shares soared $3.18, or 11.2 percent, to $31.90.
Shares of California bank FirstFed Financial Corp. climbed $1.41, or 9.1 percent, to $16.97.
Wireless communication equipment maker Novatel Wireless Inc. advanced 76 cents, or 8.3 percent, to $9.93.
Among the losing stocks, shares of color management equipment producer X-Rite Inc. lost 13 cents, or 6.9 percent, to $1.75, a fresh 52-week low.
Shares of Fairpoint Communications Inc. shed 47 cents, or 5.2 percent, to $8.63. On Sunday, a Goldman Sachs analyst reiterated his "Conviction Sell" rating in a research note, two days after the telecommunications carrier said its first-quarter profit fell 34 percent.
Document software maker Captaris Inc. gave up 23 cents, or 5 percent, to $4.36.
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