NEW YORK, April 20 Midcap and smallcap stocks advanced on Tuesday, lifted by solid earnings from industrials Crane and Astec Industries.
Smallcap Astec Industries Inc (ASTE.O) surged 12.8 percent to $35.66, hitting an 18-month high, after the road construction maker posted better-than-expected first-quarter earnings, aided by higher margins. For details, see [ID:nSGE63J0G6]
Midcap Crane Co (CR.N) climbed 5 percent to $38.08 after the diversified U.S. manufacturer reported stronger-than-expected quarterly results late Monday, as cost-cutting efforts offset a 4 percent drop in revenue. [ID:nN15232170]
The S&P MidCap Industrial index .4GSPI gained 1.5 percent and the S&P SmallCap Industrial index .6GSPI added 0.6 percent.
Many industrial companies, including their largecap counterparts, have posted first-quarter results that topped Wall Street expectations and boosted full-year outlooks from profits driven by international markets such as China and Brazil. [ID:nN20254819]
"Geopolitical realities are not lost on management teams, they know the puck is not in the United States and has shifted their attention offshore accordingly," said Lawrence Creatura, portfolio manager at Federated Clover Investment Advisors in Rochester, New York.
"This is happening irrespective of the size of the firm, you don't have to be large to recognize that overseas growth rates are often larger than domestic ones."
The S&P MidCap 400 index .MID advanced 1.1 percent while the S&P SmallCap 600 index .SML rose 0.9 percent. In comparison, the benchmark S&P 500 .SPX gained 0.7 percent.
(Editing by Chizu Nomiyama)