Financial stocks took the biggest losses on the Standard & Poor's SmallCap 600 Index at midday Friday amid a stream of bad news from heavyweights within the sector.
Citigroup Inc. warned of significant markdowns for the second quarter, while Washington Mutual Inc. announced a round of layoffs and Moody's Investment Service cut ratings on two of the biggest bond insurers.
The S&P 600 _ which tracks stocks with a market capitalization between $300 million and $2 billion _ lost 4.59 points, or 1.2 percent, to 485.19.
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.
The biggest decliner was Sterling Financial Corp., whose stock plunged 78 cents, or 15.3 percent, to $4.32. Earlier in the session, shares of the Spokane, Wash., company hit a fresh eight-year low of $4.21.
BankUnited Financial Corp. fell 20 cents, or 10.8 percent, to $1.70.
Polymer products maker Myers Industries Inc. tumbled 93 cents, or 9.4 percent, to $8.98 after touching a fresh multiyear low of $8.43 in morning trading.
The top performer was Catapult Communications Corp., which rose 48 cents, or 6.6 percent, to $7.78. The company makes test systems for the telecommunications industry.
Regional bank South Financial Group Inc. added 21 cents, or 5 percent, to $4.38.
Boston Private Financial Holdings Inc. advanced 37 cents, or 6.1 percent, to $6.44, erasing an earlier decline to an 11-year low of $5.78 earlier in the session.
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