Russell 2000 stays flat

The Russell 2000 (NYSE: IWM) has shed its earlier gains on news of poor regional manufacturing data.

At 11:38 a.m. ET, the small-cap index was up 0.21 points, or 0.03%, to 710.23. The Dow Jones Industrial Average (INDU) had lost 13.92 points, or 0.11%, to 12,413.34.

Small-cap stocks erased all of their earlier gains and slipped into the red shortly before 11 a.m. ET, following news that the Philadelphia Federal Reserve’s regional index of manufacturing conditions fell to -24 in February from a reading of -20.9 in January.

Economists were expecting to see a slight increase from the level in January, which was the lowest reading since 2001. A reading above zero indicates an expansion.

Companies reported that the price inputs increased while general activity, shipments and new orders remained negative.

The future general activity index turned sharply negative, declining to -16.9 from 5.2 in January.

The numbers once again raised fears of an economic recession.

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