The Russell 2000 Index (RTY) rose for the first time in three days, adding 2.5 percent to 674.33 at 3 p.m. in New York. The Standard & Poor's 500 Index (SPX), whose companies have a median market value 22 times larger than the Russell 2000's, climbed 4.5 percent. The stock indexes have lost 12 percent and 21 percent, respectively, this year.
Banks and brokerages advanced after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package.
BankAtlantic Bancorp Inc. (BBX) , Florida's largest bank, surged 23 percent to $8.12. Sterling Financial Corp. (STSA) increased 14 percent to $14.19. Piper Jaffray Cos. (PJC) gained 15 percent to $43.
California Pizza Kitchen Inc. (CPKI US) slid 8 percent to $13.03 and fell 10 percent earlier, the biggest intraday drop since July 31. The casual-dining chain was cut to ``sell'' by MKM Partners LLC analysts.
RC2 Corp. (RCRC US) sank 17 percent to $19.74, the steepest intraday decline since August 2007. The maker of Learning Curve infant and preschool products canceled its acquisition of Publications International Ltd.'s children's publishing unit, citing difficulty obtaining financing.
Tween Brands Inc. (TWB US) rallied 13 percent to $9.73 and climbed 15 percent earlier for the steepest intraday gain since Aug. 15. The U.S. clothing retailer for girls ages 7 through 14 reaffirmed its earnings forecast for the second half of 2008.
To contact the editor responsible for this story: Chris Nagi at email@example.com