Small caps rise in defiance

The Russell 2000 (NYSE: IWM) is posting a gain despite news of a surprising jump in January producer prices.

At 10:14 a.m. ET, the small-cap index was up 3.78 points, or 0.53%, to 714.24. The Dow Jones Industrial Average (INDU) was down 10.10 points, or 0.08%, to 12,560.12.

Small-cap stocks are in the green despite news that producer prices increased 1% in January, according to the U.S. Labor Department before the start of trading. That’s more than the expected increase of 0.4% and follows a 0.3% decline in December.

The core index, which excludes the cost of food and energy, added 0.4%. Economists were projecting an increase of 0.2% following a similar rise in December.

The numbers, which measure the selling prices received by domestic producers for their output, show that inflation pressures remain despite the current economic slowdown.

Shares of Gevity HR Inc. (Nasdaq: GVHR) are higher on news that the Bradenton, Fla.-based employment management solutions company reported fourth-quarter revenue that beat analysts’ forecasts.

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