Small caps decline
The Russell 2000 (NYSE: IWM) and the other major U.S. indices declined for the second day in a row on news of bearish economic reports. The small-cap index fell 3.80 points, or 0.54%, to 701.52. The Dow Jones Industrial Average (INDU) declined 28.77 points, or 0.23%, to 12,348.21.
On a year-to-date basis, the Russell 2000 has let go 8.42%, while the Dow has shaved 6.91% and the S&P 500 has fallen 8.06%.
The session belonged to the bears as news of government reports that showed a weak economy and hinted at a rise in inflation spooked investors.
The U.S. Labor Department reported that import prices jumped 1.7% in January due to higher energy and food prices. Economists had projected a rise of 0.5%. The year-over-year rise in import prices was 13.7%, which is the biggest change since the measure was introduced in 1982.
The United States has long relied on cheap foreign imports to keep domestic inflation low.
Adding to the economic worries was news of a report from the New York Federal Reserve that its index of general business conditions fell to its lowest level since May 2005. The numbers show that new manufacturing orders and shipments decreased while the index of prices climbed to its highest level in more than a year.
The reports suggest that the U.S. Federal Reserve might have difficulty holding inflation in check while keeping the economy growing.
Separately, preliminary numbers released by the Reuters/University of Michigan indicate a sharp drop in consumer sentiment in early February. The index fell to a level of 69.6 from 78.4 at the end of January. The result was worse than the decline expected by economists and the lowest reading in 16 years.
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:
• North American Energy Partners Inc. (NOA), up 28% to $14.29 on news of a rise in third-quarter profit.
• Asiainfo Holdings, Inc. (ASIA), up 26% to $11.77 on news of a rise in fourth-quarter profit.
• eHealth Inc. (EHTH), up 19% to $26.14.
Biggest percentage losers:
• Ultralife Batteries, Inc. (ULBI), down 17% to $14.00 on news it expects a fourth-quarter operating loss.
• EuroBancshares, Inc. (EUBK), down 16% to $6.27.
• Cowen Group, Inc. (COWN), down 10% to $8.22.
Volume leaders:
• SiRF Technology Holdings, Inc. (SIRF) 4,279,400 shares traded.
• Allscripts Healthcare Solutions, Inc. (MDRX) 4,184,800 shares traded.
• Radian Group Inc. (RDN) 3,998,300 shares traded.
The day saw 38 small-cap stocks set 52-week lows, while 4 small caps established a 52-week high.
On a year-to-date basis, the Russell 2000 has let go 8.42%, while the Dow has shaved 6.91% and the S&P 500 has fallen 8.06%.
The session belonged to the bears as news of government reports that showed a weak economy and hinted at a rise in inflation spooked investors.
The U.S. Labor Department reported that import prices jumped 1.7% in January due to higher energy and food prices. Economists had projected a rise of 0.5%. The year-over-year rise in import prices was 13.7%, which is the biggest change since the measure was introduced in 1982.
The United States has long relied on cheap foreign imports to keep domestic inflation low.
Adding to the economic worries was news of a report from the New York Federal Reserve that its index of general business conditions fell to its lowest level since May 2005. The numbers show that new manufacturing orders and shipments decreased while the index of prices climbed to its highest level in more than a year.
The reports suggest that the U.S. Federal Reserve might have difficulty holding inflation in check while keeping the economy growing.
Separately, preliminary numbers released by the Reuters/University of Michigan indicate a sharp drop in consumer sentiment in early February. The index fell to a level of 69.6 from 78.4 at the end of January. The result was worse than the decline expected by economists and the lowest reading in 16 years.
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:
• North American Energy Partners Inc. (NOA), up 28% to $14.29 on news of a rise in third-quarter profit.
• Asiainfo Holdings, Inc. (ASIA), up 26% to $11.77 on news of a rise in fourth-quarter profit.
• eHealth Inc. (EHTH), up 19% to $26.14.
Biggest percentage losers:
• Ultralife Batteries, Inc. (ULBI), down 17% to $14.00 on news it expects a fourth-quarter operating loss.
• EuroBancshares, Inc. (EUBK), down 16% to $6.27.
• Cowen Group, Inc. (COWN), down 10% to $8.22.
Volume leaders:
• SiRF Technology Holdings, Inc. (SIRF) 4,279,400 shares traded.
• Allscripts Healthcare Solutions, Inc. (MDRX) 4,184,800 shares traded.
• Radian Group Inc. (RDN) 3,998,300 shares traded.
The day saw 38 small-cap stocks set 52-week lows, while 4 small caps established a 52-week high.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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