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Netgear, Sotheby's, PeopleSupport: U.S. Small-Cap Equity Movers

The Russell 2000 Index (RTY) rose for the first time in six days, adding 1.1 percent to 565.06 at 3:08 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, gained 1.7 percent. The stock indexes have dropped 26 percent and 31 percent, respectively, this year.

China Information Security Technology Inc. (CPBY US) climbed 19 percent to $3.60 and earlier rose 31 percent for the biggest intraday gain since February 2007. The software company won a $2.73 million contract from a government agency in China that receives complaints from consumers about products and services.

Netgear Inc. (NTGR) fell 7.4 percent to $11.51 and slumped as much as 24 percent for the steepest intraday drop since July 2007. The maker of networking equipment for homes and small businesses said third-quarter sales were as low as $173 million, compared with its forecast of $208 million to $212 million. The company said it had weakness last month ``across all channels.''

PeopleSupport Inc. (PSPT US) gained 23 percent to $11.38, and earlier rose 26 percent in the biggest intraday advance since April. The provider of business-process outsourcing its takeover by Essar Services will close no later than Oct. 31. PeopleSupport tumbled 23 percent yesterday after saying Essar asked to delay the deal.

Sotheby's (BID) fell 4.3 percent to $13.26 and slid to $12.70 earlier, the lowest intraday level since April 2004. The world's largest publicly traded art-auction house missed the estimate for its Hong Kong sale as the global financial crisis caused buyers to shun some top lots. The company's sale was about half its presale total estimate of HK$2 billion ($260 million).

Stewart Enterprises Inc. (STEI) plunged 28 percent to $5.07 and earlier fell 30 percent for the biggest intraday drop in nine years. Service Corp. International (SCI US), the biggest U.S. funeral-home and cemetery owner, withdrew its proposal to buy Stewart because of ``unacceptable'' pre-conditions.

To contact the reporter on this story: Elizabeth Campbell in New York ecampbell11@bloomberg.net.

To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net.

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