S&P SmallCap 600 in Focus: FBC GGC

The S&P SmallCap 600 Index lost 3.05 points to 389.58. The index tracks stocks with a market capitalization between $300 million and $2 billion.

The biggest decliner on the index was Flagstar Bancorp Inc. after the Troy, Mich.-based bank said it would attempt to shore up its capital base by raising $100 million through an equity sale. The stock plunged $1.09, or 18 percent, to $4.86. Shares reached a fresh 52-week low of $4.65 earlier in the session.

Shares of Exar Corp. tumbled $1.24, or 13.8 percent, to $7.77. Late Thursday, the circuit maker posted an adjusted fiscal fourth-quarter loss of $1.7 million, or 4 cents per share. Analysts polled by Thomson Financial expected a loss of a penny per share.

Shares of Audiovox Corp. sank 98 cents, or 9 percent, to $9.86. The automotive entertainment and vehicle security marketer said its fiscal fourth-quarter loss widened on higher acquisition costs.

Among the gainers, chemicals and home-improvement products maker Georgia Gulf Corp. soared 48 cents, or 11.2 percent, to $4.75.

Shares of drug ingredient maker Cambrex Corp. advanced 50 cents, or 9 percent, to $6.07.

And shares of Lithia Motors Inc. gained 55 cents, or 6.9 percent, to $8.49. On Friday, JPMorgan analyst Edward J. Yruma upgraded the auto franchise operator to "Neutral" from "Underweight" in a note to investors.

Small-cap companies make up about 3 percent of the total U.S. securities market, but are often cited as good investments due to their low valuations and potential to grow into big-cap stocks.