Quadruple joy for Russell 2000
The Russell 2000 (NYSE: IWM) rallied and posted gains for the fourth consecutive day on news that the American consumer remains strong. The small-cap index added 18.06 points, or 2.35%, to 785.60. The Dow Jones Industrial Average (INDU) climbed 205.01 points, or 1.55%, to 13,450.65.
On a year-to-date basis, the Russell 2000 is off 0.23%, while the Dow is up 7.83% and the S&P 500 has risen 4.79%.
The bulls completely dominated trading today on news that personal spending rose a better-than-expected 1.1% in November, according to the U.S. Commerce Department. The increase, the biggest in over three years, came as consumers responded favorably to holiday discounts offered by retailers.
Economists were expecting spending to increase 0.7% after a rise of 0.2% in October.
The news calmed fears that consumers will cut back on spending due to falling home prices and higher energy costs. Consumption is about 70% of gross domestic product.
However, Americans are still apprehensive about the economy and their personal finances.
A Reuters/University of Michigan consumer survey showed that consumer sentiment fell to 75.5 in December from 76.1 in November. That’s the lowest level since September 2005, when the country was dealing with the aftermath of Hurricane Katrina.
Economists had actually forecasted a slightly steeper decline to 74.5. Consumer sentiment measures whether or not consumers feel like spending money.
The Commerce Department also reported that personal income in November rose a lower-than-expected 0.4% following an increase of 0.2% in October.
In corporate news, Merrill Lynch (NYSE: MER) also contributed to the bullish sentiment. A report in The Wall Street Journal claims that the New York-based company will sell a stake of itself for a $5 billion cash injection from Singapore’s state investment company.
Many financial services giants have also sold stakes in order to secure much-needed capital to deal with the consequences of the meltdown in the subprime mortgage sector.
Stocks opened the day with large gains and maintained the momentum until the end of the session.
Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Global Cash Access Holdings, Inc. (GCA), up 48% to $7.69 on news it has completed an internal review and has found no evidence of fraud or intentional misconduct.
• Gevity HR, Inc. (GVHR), up 25% to $8.05.
• ParkerVision Inc. (PRKR), up 21% to $15.75 on news it has entered into a royalty-bearing intellectual property license agreement with an undisclosed provider of chipsets to mobile handset manufacturers.
Biggest percentage losers:
• FGX International Holdings Ltd. (FGXI), down 16% to $9.92.
• Cavco Industries Inc. (CVCO) down 16% to $28.10.
• Possis Medical, Inc. (POSS) down 12% to $13.98.
Volume leaders:
• Palm Inc. (PALM) 8,463,300 shares traded.
• Pier 1 Imports Inc. (PIR) 6,125,400 shares traded.
• Charming Shoppes, Inc. (CHRS) 5,555,400 shares traded.
The day saw 50 small-cap stocks set 52-week lows, while 20 caps established 52-week highs.
On a year-to-date basis, the Russell 2000 is off 0.23%, while the Dow is up 7.83% and the S&P 500 has risen 4.79%.
The bulls completely dominated trading today on news that personal spending rose a better-than-expected 1.1% in November, according to the U.S. Commerce Department. The increase, the biggest in over three years, came as consumers responded favorably to holiday discounts offered by retailers.
Economists were expecting spending to increase 0.7% after a rise of 0.2% in October.
The news calmed fears that consumers will cut back on spending due to falling home prices and higher energy costs. Consumption is about 70% of gross domestic product.
However, Americans are still apprehensive about the economy and their personal finances.
A Reuters/University of Michigan consumer survey showed that consumer sentiment fell to 75.5 in December from 76.1 in November. That’s the lowest level since September 2005, when the country was dealing with the aftermath of Hurricane Katrina.
Economists had actually forecasted a slightly steeper decline to 74.5. Consumer sentiment measures whether or not consumers feel like spending money.
The Commerce Department also reported that personal income in November rose a lower-than-expected 0.4% following an increase of 0.2% in October.
In corporate news, Merrill Lynch (NYSE: MER) also contributed to the bullish sentiment. A report in The Wall Street Journal claims that the New York-based company will sell a stake of itself for a $5 billion cash injection from Singapore’s state investment company.
Many financial services giants have also sold stakes in order to secure much-needed capital to deal with the consequences of the meltdown in the subprime mortgage sector.
Stocks opened the day with large gains and maintained the momentum until the end of the session.
Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Global Cash Access Holdings, Inc. (GCA), up 48% to $7.69 on news it has completed an internal review and has found no evidence of fraud or intentional misconduct.
• Gevity HR, Inc. (GVHR), up 25% to $8.05.
• ParkerVision Inc. (PRKR), up 21% to $15.75 on news it has entered into a royalty-bearing intellectual property license agreement with an undisclosed provider of chipsets to mobile handset manufacturers.
Biggest percentage losers:
• FGX International Holdings Ltd. (FGXI), down 16% to $9.92.
• Cavco Industries Inc. (CVCO) down 16% to $28.10.
• Possis Medical, Inc. (POSS) down 12% to $13.98.
Volume leaders:
• Palm Inc. (PALM) 8,463,300 shares traded.
• Pier 1 Imports Inc. (PIR) 6,125,400 shares traded.
• Charming Shoppes, Inc. (CHRS) 5,555,400 shares traded.
The day saw 50 small-cap stocks set 52-week lows, while 20 caps established 52-week highs.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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