| NEW YORK
NEW YORK May 10 Mid- and smallcap stocks
posted their best day in more than a year on Monday, as risk
appetite swelled after European officials agreed to a nearly $1
trillion emergency rescue package to avert a sovereign debt
crisis that was threatening to spread through parts of the euro
Euro zone central banks started buying up government bonds
in a reversal of the European Central Bank's resistance to
asset purchases as it fights to contain Greece's debt crisis.
The rally was broad and deep, with most sectors on the
Standard & Poor's mid- and smallcap indexes up more than 5
M/I Homes Inc (MHO.N) was among the top performers, up 22
percent to $14.40. The S&P smallcap homebuilding subindustries
index .6GSPHOME shot up 11.1 percent.
Dynegy Inc (DYN.N) rose 13.4 percent to $1.35 after the
electric energy company posted a surprise quarterly profit,
helped by higher operating margins, and retained its outlook
for 2010 adjusted earnings before interest, taxes, depreciation
"Stocks that were strong before the correction the last
couple of weeks started performing again and that is because
their earnings were so strong," said Gary Bradshaw, portfolio
manager at Hodges Capital Management in Dallas.
"The U.S. economy is improving faster than most people
think. This overseas chaos can be very good for the U.S. stock
The S&P MidCap 400 index .MID and the S&P SmallCap 600
index .SML both advanced 5.2 percent, their largest daily
advances since early April 2009. In comparison, the benchmark
S&P 500 .SPX gained 4.4 percent.
(Editing by Leslie Adler)