Small caps jumping

The Russell 2000 (NYSE: IWM) opened with a large rise following news that Wal-Mart Stores, Inc. saw an increase in fourth-quarter profit.

At 10:09 a.m. ET, the small-cap index had added 4.93 points, or 0.70%, to 706.45. The Dow Jones Industrial Average (INDU) was up 109.41 points, or 0.89%, to 12,457.62.

Stocks small and large are posting large gains on news that Wal-Mart Stores, Inc. (NYSE: WMT) posted a 4% rise in fiscal fourth-quarter net income. The Bentonville, Ark.-based company had a profit of $4.1 billion, or $1.02 per share, meeting analysts’ projections and up from $3.94 billion, or $0.95 per share, a year earlier.

However, Wal-Mart, the world’s largest retailer, warned that U.S. consumers are becoming more cautious. The fourth-quarter profit rise was largely due to strong international sales.

Among the small-cap companies whose shares are moving up is Steven Madden, Ltd. (Nasdaq: SHOO). The footwear maker and retailer announced that soft consumer spending led operating income to fall to $7 million the fourth-quarter ended Dec. 31, compared with $16.7 million a year earlier.

However, helping shares rise is news that the company will offer to buy up to 2.6 million shares as part of a “Dutch Auction” tender offer for about $52 million.

Also moving up are shares of PharMerica Corp. (NYSE: PMC). The Louisville, Ky.-based pharmacy services company raised its fourth-quarter net income to $2.8 million from $1.9 million a year earlier.

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