Earnings lift Russell 2000
The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are posting solid gains this morning on news of better-than-expected third-quarter earnings.
At 10:33 a.m. ET, the small-cap index rose 3.79 points, or 0.47%, to 813.87. The Dow was up 75.28 points, or 0.55%, to 13,642.25.
The bulls are roaming Wall Street this morning in reaction to upbeat earnings news from major corporate players.
Apple Inc. (Nasdaq: AAPL) got the party started after the close on Monday when it reported a 67% increase in third-quarter revenue, partially driven by strong demand for Macintosh computers.
Helping set the positive tone is AT&T Inc. (NYSE: T), the largest U.S. telecommunications company, which announced that its third-quarter net income increased 41%, mostly due to its acquisition of BellSouth Corp.
Also contributing is credit card issuer American Express Co. (NYSE: AXP), which reported this morning that third-quarter profit rose 10% while revenue added 11%.
Among small-cap companies, Cambridge, Mass.-based Art Technology Group, Inc. (Nasdaq: ARTG) announced quarterly revenue results just a hair above Wall Street’s forecast, while Semitool Inc. (Nasdaq: SMTL) announced that it expects a wider fourth-quarter loss.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• China Shenghuo Pharmaceutical Holdings Inc. (KUN), up 13%.
• General Steel Holdings Inc. (GSI), up 14% on news of a third-quarter revenue forecast.
• Cardica Inc. (CRDC), up 12%.
Biggest percentage losers:
• Ambassadors Group Inc. (EPAX), down 37% on news its 2008 forecast was below analysts’ projections.
• Vitran Corporation Inc. (VTNC), down 15% on news of a third-quarter profit decline.
• Marten Transport Ltd. (MRTN), down 10% on news of a decline in third-quarter profit.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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