Russell 2000 extends decline
The Russell 2000 (NYSE: IWM) has added to its earlier losses after news of a rise in U.S. wholesale inventories in January.
At 12:06 p.m. ET, the small-cap index was down 9.09 points, or 1.38%, to 651.02. The Dow Jones Industrial Average (INDU) was missing 97.12 points, or 0.82%, to 11,796.57.
The stock of unsold goods held by wholesalers increased 0.8% in January, the U.S. Census Bureau reported after the start of trading. Economists were expecting wholesale inventories to rise 0.4% following a 1.1% jump in December.
However, wholesale sales increased 2.7%, the largest rise since March 2003. Sales fell 0.5% in December.
Wholesalers act as intermediaries between manufacturers or importers, and retailers, and a rise in inventories indicates that unsold goods are piling up.
Shares of steel companies are leading the list of sector losers. Among the decliners is small-cap steel maker Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP). Also trading in the red is China Precision Steel, Inc. (Nasdaq: CPSL).
Shares of Somanetics Corp. (Nasdaq: SMTS) are also in bearish territory on news before the opening that the Troy, Mich.-based maker of a noninvasive patient monitoring system was downgraded by an analyst.
Bucking the trend is Tongjitang Chinese Medicines Co. (NYSE: TCM). The China-based specialty pharmaceutical company has received a buyout offer from its chairman.
At 12:06 p.m. ET, the small-cap index was down 9.09 points, or 1.38%, to 651.02. The Dow Jones Industrial Average (INDU) was missing 97.12 points, or 0.82%, to 11,796.57.
The stock of unsold goods held by wholesalers increased 0.8% in January, the U.S. Census Bureau reported after the start of trading. Economists were expecting wholesale inventories to rise 0.4% following a 1.1% jump in December.
However, wholesale sales increased 2.7%, the largest rise since March 2003. Sales fell 0.5% in December.
Wholesalers act as intermediaries between manufacturers or importers, and retailers, and a rise in inventories indicates that unsold goods are piling up.
Shares of steel companies are leading the list of sector losers. Among the decliners is small-cap steel maker Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP). Also trading in the red is China Precision Steel, Inc. (Nasdaq: CPSL).
Shares of Somanetics Corp. (Nasdaq: SMTS) are also in bearish territory on news before the opening that the Troy, Mich.-based maker of a noninvasive patient monitoring system was downgraded by an analyst.
Bucking the trend is Tongjitang Chinese Medicines Co. (NYSE: TCM). The China-based specialty pharmaceutical company has received a buyout offer from its chairman.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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