US SMALL/MIDCAPS-Energy, consumer shares lead after GDP data - News

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US SMALL/MIDCAPS-Energy, consumer shares lead after GDP data

By: AFX | 29 Oct 2009 | 04:04 PM ET

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By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - Mid- and smallcap stocks rebounded on Thursday as data showed the U.S. economy grew faster than expected in the third quarter and solid earnings helped lift energy and consumer stocks. Energy stocks were led by a handful of companies reporting results, including midcap drilling contractor Patterson-UTI Inc , up 8.6 percent to $16.97 and smallcap ceramic sand supplier Carbo Ceramics Inc, which surged 16.7 percent to $59.59. Scott Billeaudeau, portfolio manager at Fifth Third Asset Management in Minneapolis, noted that energy companies have benefited from the rally in oil.

"Service costs are rolling down, and you've got a nice gap," he said. The S&P MidCap Energy index jumped 4.8 percent while the S&P SmallCap 600 index climbed 3.5 percent. Government data showed the U.S. economy grew for the first time in more than a year as government stimulus helped lift consumer spending and home building. For details, see The data fueled a broad rally across all sectors, putting the S&P MidCap 400 index and the S&P Smallcap 600 index on pace to snap four straight session of declines, including drops of more than 3 percent on Wednesday. "That GDP number definitely turned the tides, the market was getting a little heavy, especially the small cap market yesterday," said Billeaudeau. Consumer stocks were lifted by strong earnings from midcap footwear maker Timberland Co, which rocketed nearly 25 percent to $16.60 and all-terrain vehicle maker Arctic Cat Inc , up 12.9 percent to $6.50. The S&P MidCap 400 index rose 2.1 percent while the S&P SmallCap index added 1.9 percent. By comparison, the large cap S&P 500 index gained 2 percent. (Reporting by Chuck Mikolajczak, Editing by Chizu Nomiyama) (Charles.mikolajczak@thomsonreuters.com; +1 646 223 5234; Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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