Russell 2000 slipping
The Russell 2000 (NYSE: IWM) is slipping into negative territory despite a generally bullish mood following upbeat news from major corporate players.
At 10:38 a.m. ET, the small-cap index had lost 2.77 points, or 0.35%, to 787.66. The Dow Jones Industrial Average (INDU) was up 15.93 points, or 0.12%, to 13,559.33.
The mood in pre-market trading was bullish following news that Citigroup Inc. (NYSE: C) has hired an expert to manage its $43 billion subprime mortgage portfolio. The New York-based bank caused a sell-off on Monday after announcing that it expects additional losses of $8 billion to $11 billion after already suffering $6.5 billion in credit-related losses in the third quarter.
The tech sector contributed to the positive sentiment after a broker research firm raised its price target for heavyweight Google Inc. (Nasdaq: GOOG), while Research In Motion Ltd. (TSE: RIM) received a brokerage recommendation.
In economic news, U.S. chain store sales fell 0.4% in the final week of October, according to Redbook Research, a publisher of statistics on U.S. Retail Market. The decline is a worrisome sign of lower consumer demand.
Investors will also paying attention to a speech by U.S. Federal Reserve chairman Ben Bernanke, who will be in Texas at a summit on microfinance in the United States. The speech is likely to be academic in nature, but Bernanke’s words will be analyzed for clues about the current state of the U.S. economy and hints about future monetary policy action.
Overseas, London’s FTSE 100 advanced 0.5%, while Hong Kong’s Hang Seng index added 1.7% shares of Chinese e-commerce site Alibaba.com shot up nearly 300% on their debut.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Chesapeake Corp. (CSK), up 26% on news of a rise in third-quarter profit.
• DivX Inc. (DIVX), up 26% on news of third-quarter earnings that beat expectations.
• Valassis Communications Inc. (VCI), up 20% on news of higher third-quarter earnings.
Biggest percentage losers:
• Momenta Pharmaceuticals Inc. (MNTA), down 48% on news of a new drug being put on hold by regulators.
• Albany Molecular Research Inc. (AMRI), down 31% on news that third-quarter earnings missed expectations.
• Emageon Inc. (EMAG) down 25% on news of a third-quarter loss.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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