Russell 2000 futures slumping

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will open in negative territory.

Stocks small and large are set for a bearish opening following news after the close on Monday that chip maker Intel Corp. (Nasdaq: INTC) lowered its first-quarter gross margin forecast to 54% from 56% earlier. The Santa Clara, Calif.-based company blamed lower than expected prices for some flash memory chips.

The Russell 2000 closed down 1.96, or 0.29% at 684.22. Although the price action was primarily bearish in nature, the market generated a nice afternoon recovery off important chart support and has the potential to kick-start higher Tuesday if immediate support holds up along the 680-683 area. Below there, small caps need to hold 675 or risk a sudden freefall back down to the 650 low. On the upside, resistance comes in Tuesday at 694, 701 and 712.

There are no economic reports to whipsaw the market Tuesday, but there are several Federal Reserve speakers on tap, including Chairman Bernanke. It’s always wise to be cautious whenever the chairman speaks, but his topic is expected to be about foreclosures, so it might not be all that market-moving in nature. In addition, traders might be preoccupied watching coverage of the voting in the Ohio and Texas primaries.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Origin Agritech Ltd. (SEED), up 9% on news it has approved five new corn hybrid varieties for its product line.
• GeoResources, Inc. (GEOI), up 8%.
• Perficient, Inc. (PRFT), up 8% on news of that fourth-quarter earnings beat expectations.

Biggest percentage losers:

• Obagi Medical Products, Inc. (OMPI), down 16% on news of disappointing fourth-quarter results.
• US BioEnergy Corp. (USBE), down 6%.
• TBS International Ltd. (TBSI), down 5%.

Kevin Pendley contributed to this report.

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