NEW YORK, April 25 (Reuters) - Shares of small and mid-cap companies slipped on Monday on worries about inflation, but analysts expect strong earnings to continue to support the stocks to outperform the broader market.
The S&P MidCap 400 index fell 0.1 percent while the S&P SmallCap 600 index 0.3 percent. In comparison, the benchmark S&P 500 lost 0.2 percent.
'Both top-line and bottom-line strategies have outperformed in the small and mid-cap space this year, and we expect the upcoming reporting season to positively impact the market,' said Pankaj N. Patel, analyst at Credit Suisse.
'The growth rate expectations are robust compared to the numbers from last quarter. Energy, financials and industrials have a projected year-over-year growth of greater than 100 percent,' he said. 'However, consumer staples and materials have a negative growth rate expectation for the upcoming quarter.'
On the upside, Sohu.com Inc gained 8.8 percent to $104.14 after the Chinese Internet portal's first-quarter profit rose 34 percent, mainly helped by a rise in online game and online brand advertising revenue.
Changyou.com Ltd shares rose 9 percent at $43.36 after the company reported quarterly results.
CNO Financial Group Inc gained 4.3 percent to $7.82 after the company forecast first-quarter profit largely above Wall Street expectations.
But shares of Astec Industries Inc fell 2.8 percent to $37.96 even after the road construction equipment maker posted better-than-expected quarterly results helped by higher asphalt and mining group revenue.
Arkansas Best Corp fell 8 percent to $23.34 after the U.S. trucking company posted a market-trailing quarterly loss, hurt by higher fuel costs amid a weak pricing environment.
(Reporting by Angela Moon, Editing by Leslie Adler) Keywords: MARKETS STOCKS/SMALLMID (angela.moon@thomsonreuters.com;+1 646 223 5685; Reuters Messaging:angela.moon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The S&P MidCap 400 index fell 0.1 percent while the S&P SmallCap 600 index 0.3 percent. In comparison, the benchmark S&P 500 lost 0.2 percent.
'Both top-line and bottom-line strategies have outperformed in the small and mid-cap space this year, and we expect the upcoming reporting season to positively impact the market,' said Pankaj N. Patel, analyst at Credit Suisse.
'The growth rate expectations are robust compared to the numbers from last quarter. Energy, financials and industrials have a projected year-over-year growth of greater than 100 percent,' he said. 'However, consumer staples and materials have a negative growth rate expectation for the upcoming quarter.'
On the upside, Sohu.com Inc gained 8.8 percent to $104.14 after the Chinese Internet portal's first-quarter profit rose 34 percent, mainly helped by a rise in online game and online brand advertising revenue.
Changyou.com Ltd shares rose 9 percent at $43.36 after the company reported quarterly results.
CNO Financial Group Inc gained 4.3 percent to $7.82 after the company forecast first-quarter profit largely above Wall Street expectations.
But shares of Astec Industries Inc fell 2.8 percent to $37.96 even after the road construction equipment maker posted better-than-expected quarterly results helped by higher asphalt and mining group revenue.
Arkansas Best Corp fell 8 percent to $23.34 after the U.S. trucking company posted a market-trailing quarterly loss, hurt by higher fuel costs amid a weak pricing environment.
(Reporting by Angela Moon, Editing by Leslie Adler) Keywords: MARKETS STOCKS/SMALLMID (angela.moon@thomsonreuters.com;+1 646 223 5685; Reuters Messaging:angela.moon.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.