Russell 2000 stays positive
The Russell 2000 (NYSE: IWM) has trimmed some of its earlier gains but is still comfortably in positive territory. At 1: 31 p.m. ET, the small-cap index had climbed 2.94 points, or 0.42%, to 707.59. The Dow Jones Industrial Average (INDU) was up 122.75 points, or 0.97%, to 12,729.05.
Trading got off to a good start on news that International Business Machines Corp. (NYSE: IBM), the largest information technology company in the world, reported better-than-expected preliminary quarterly results.
The Armonk, New York-based company said that it expects earnings from continuing operations for the quarter ended Dec. 31 to be $2.80 per share, above Wall Street’s consensus estimate of $2.60 per share.
The better-than-expected result is partially attributed to the weak U.S. dollar, which makes IBM’s overseas profit seem larger.
One greenback is currently worth 0.6722 euros, the currency used by 15 countries in the 27-member European Union. The dollar began the day at a level just above 0.675 euros.
The U.S. dollar has been losing ground for months. In March 2007, it was at a level of around 0.75 euros.
Meanwhile, retailer Sears Holdings Corp. (Nasdaq: SHLD) announced before the start of trading that it forecasts fourth-quarter earnings below analysts’ expectations due to a decline in same-store holiday sales.
The news hints at the possibility of a decline in consumer spending, which would be a negative sign for U.S. economic growth.
Elsewhere, the price of oil has increased $1.11 to $93.80 a barrel.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• A.S.V., Inc. (ASVI), up 45% on news it is being purchased by Terex Corp. (TEX) for about $488 million.
• Golden Cycle Gold Corp. (GCGC), up 34% on news it has entered into an agreement to be acquired by AngloGold Ashanti Ltd. for about $149 million.
• FTD Group, Inc. (FTD), up 20% on news it issued a fiscal second-quarter forecast that beat Wall Street’s projections.
Biggest percentage losers:
• The Steak n Shake Co. (SNS), down 16% on news of a decline in same-store sales during the fiscal first quarter.
• MEMSIC Inc. (MEMS), down 14%.
• Downey Financial Corp. (DSL), down 12% on news it has reclassified $99 million of loans as non-performing.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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