US SMALL/MIDCAPS-Weak earnings hit financials

By Chuck Mikolajczak

NEW YORK, Oct 23 (Reuters) - Mid-cap and small-cap stocks fell on Friday in a broad sell-off, weighed down by disappointing corporate earnings in several sectors, including financials.

Midcap Synovus Financial Corp (SNV.N) plunged 20.7 percent to $2.83 after the U.S. Southeast regional bank posted a quarterly loss that jumped more than ten-fold, hurt by a charge of about $149 million and a higher loan loss provision. For details, see [ID:nBNG500599]

Small-cap Sterling Financial Corp (STSA.O) dropped 22.3 percent to 87 cents after reporting a wider-than-expected loss in the third quarter, which included a charge of $227.6 million. [ID:nWNAB3102]

"The ones that are missing (estimates) are getting killed," said Rick Campagna, portfolio manager at Provident Investment Council in Pasadena, California.

"Even the ones that are in line, but the top line isn't great, they are getting pummeled."

The S&P MidCap Financial Index .4GSPF and the S&P SmallCap 600 .6GSPF both dropped 1.2 percent.

Forest Oil Corp (FST.N) fell 4.5 percent to $22.06 after UBS cut the independent oil and gas company to to "neutral." UBS also cut Arena Resources Inc (ARD.N), to "neutral," and the shares lost 4.5 percent to $40.75.

Each of the 10 S&P sectors were negative.

The S&P MidCap 400 index .MID fell 1.2 percent and the S&P SmallCap 600 index .SML lost 1.5 percent. The large cap S&P 500 index .SPX dropped 1.1 percent. (Reporting by Chuck Mikolajczak; Editing by Padraic Cassidy)