Russell 2000 likely to sag
The Russell 2000 (NYSE: IWM) futures are slightly higher but the small-cap index will be weighed down by a spike in the price of oil and unimpressive economic news.
The price of oil has continued climbing to record highs, up more than $0.50 and approaching $87 a barrel. Investors are pointing to tight inventories as winter approaches and tensions along the border between Iraq and Turkey.
Overseas, the major indices in Europe fell after Swedish maker of wireless infrastructure equipment Ericsson warned that its third-quarter profit will decline 36% due to lower demand.
Contributing to the bearish mood before the start of trading is news after the close on Monday that U.S. Federal Reserve chairman Ben Bernanke told the Economic Club of New York that the stagnation in the housing sector will be a drag on economic growth going into 2008.
Investors will be waiting to see an index an index on September industrial production, scheduled to be released at 9:15 a.m. ET. The measure is expected to show a slowdown.
Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• China Precision Steel, Inc. (CPSL), up 9%.
• Anesiva Inc. (ANSV), up 9% on news of a successful drug trial.
• China GrenTech Corporation Ltd. (GRRF), up 7%.
Biggest percentage losers:
• BioScrip Inc. (BIOS), down 9%.
• City Telecom (H.K.) Ltd. (CTEL), down 8%.
• IXYS Corp. (IXYS), down 8%.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
Read More
(click a star)
Enter comment: