NEW YORK, Dec 8 - Mid- and small cap stocks were lower on Monday, as a stronger dollar weighed on energy stocks and a decision by the U.S. Department of Health and Human Services dragged some pharmaceutical companies down.
Crude oil futures CLc1 fell 1.8 percent, pressured by a 0.6 percent rise in the greenback .DXY and a lowered forecast for global oil demand next year from the U.S. Energy Information Administration.
"You're starting to see the dollar unexpectedly strengthen up," said Eric Marshall, Director of Research at Hodges Capital Management, Dallas Texas.
"Ever since last Friday's jobs data there is more of a perception that maybe the employment situation is going to improve faster than we anticipated and interest rates would go up faster than people expect and therefore the dollar would strengthen in response to higher interest rates," he said.
The S&P MidCap Energy index .4GSPE slipped 1.8 percent, and the S&P SmallCap Energy index .6GSPE dropped 1.7 percent.
Smallcap Emergent BioSolutions Inc (EBS.N) stumbled 9.3 percent to $13.06 after the Health and Human Services Department altered its procedure for requesting anthrax vaccines. After an evaluation, a panel determined that none of the developers submitting proposals, including vaccine maker Emergent and others, could meet the current requirement within eight years.
Analysts at Caris subsequently cut their price target on Emergent to $17 from $21 per share.
Fellow biodefense company PharmAthene Inc (PIP.A) plummeted 52.9 percent to $1.55 on the news.
The S&P MidCap 400 index .MID dropped 0.9 percent. The S&P SmallCap 600 index .SML fell 0.8 percent. The large cap S&P 500 index .SPX slipped 1.2 percent.
Crude oil futures CLc1 fell 1.8 percent, pressured by a 0.6 percent rise in the greenback .DXY and a lowered forecast for global oil demand next year from the U.S. Energy Information Administration.
"You're starting to see the dollar unexpectedly strengthen up," said Eric Marshall, Director of Research at Hodges Capital Management, Dallas Texas.
"Ever since last Friday's jobs data there is more of a perception that maybe the employment situation is going to improve faster than we anticipated and interest rates would go up faster than people expect and therefore the dollar would strengthen in response to higher interest rates," he said.
The S&P MidCap Energy index .4GSPE slipped 1.8 percent, and the S&P SmallCap Energy index .6GSPE dropped 1.7 percent.
Smallcap Emergent BioSolutions Inc (EBS.N) stumbled 9.3 percent to $13.06 after the Health and Human Services Department altered its procedure for requesting anthrax vaccines. After an evaluation, a panel determined that none of the developers submitting proposals, including vaccine maker Emergent and others, could meet the current requirement within eight years.
Analysts at Caris subsequently cut their price target on Emergent to $17 from $21 per share.
Fellow biodefense company PharmAthene Inc (PIP.A) plummeted 52.9 percent to $1.55 on the news.
The S&P MidCap 400 index .MID dropped 0.9 percent. The S&P SmallCap 600 index .SML fell 0.8 percent. The large cap S&P 500 index .SPX slipped 1.2 percent.
