Russell 2000 ready to sag
The Russell 2000 (NYSE: IWM) futures are flat but the small-cap index will probably be weighed down by news of poor earnings.
The bears will most likely overpower the bulls after the opening, following news that Wachovia Corp. (Nasdaq: WB), the fourth largest U.S. bank, reported a decline in its third-quarter profit. The Charlotte, N.C.-based bank attributed the shortfall to difficult credit market conditions.
In other disappointing news, heavy equipment maker Caterpillar Inc. (NYSE: CAT) announced a quarterly profit that missed analysts’ forecasts. Net income came to $1.40 per share, below the projected $1.42 per share.
That’s a sign of the slowdown in housing, as fewer builders are breaking ground on fewer new houses and have less need for Peoria, Ill.-based Caterpillar’s signature products.
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:
• Overstock.com Inc. (OSTK), up 15% on news of a narrower third-quarter loss.
• Steve Madden Ltd. (SHOO), up 14% on news of a possible sale.
• CyberSource Corp. (CYBS), up 14% on news of better-than-expected third-quarter results.
Biggest percentage losers:
• Nanophase Technologies (NANX), down 13% on news of a wider third-quarter loss.
• Center Bancorp Inc. (CNBC), down 2%.
• China Techfaith Wireless Communication Technology Ltd. (CNTF) down 2%.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
Read More
(click a star)
Enter comment: