Russell closes with steep loss

Alex Alexandrov | Mar 10, 2008 4:27pm EDT | Comment

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The Russell 2000 (NYSE: IWM) closed with a steep loss as recession fears spread on Wall Street. The small-cap index fell 16.14 points, or 2.45%, to 643.97. The Dow Jones Industrial Average (INDU) lost 153.54 points, or 1.29%, to 11,740.15.

On a year-to-date basis, the Russell 2000 has declined 15.93%, while the Dow is down 11.50% and the S&P 500 has shed 13.28%.

The bears dominated the session today as the specter of recession loomed in the background. Friday’s disappointing jobs report, which showed that payrolls plunged 63,000 in February, led many economists to conclude that the U.S. economy is either in or will soon be in a recession.

A report by investment bank The Goldman Sachs Group, Inc. (NYSE: GS) released before the start of trading forecasts that the U.S. Federal Reserve will respond by lowering its target federal funds rate to 2% by late April to give the economy a boost.

The federal funds rate, the rate commercial banks charge each other for overnight loans, currently stands at 3%.

The Russell 2000 was on a steady decline from the start of trading, slowly sliding lower throughout the course of the day. Today’s declines were led by shares of steel companies and shares of companies in the financial services industry.

Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Tongjitang Chinese Medicines Co. (TCM), up 32% to $8.71 on news that its chairman has offered to buy all the shares.
• LMI Aerospace, Inc. (LMIA), up 11% to $19.70 on news of a rise in fourth-quarter profit.
• General Communication, Inc. (GNCMA), up 10% to $5.59.

Biggest percentage losers:

• CRA International, Inc. (CRAI), down 40% to $22.99 on news that it expects first-quarter revenue to come in below analysts’ projections.
• Somanetics Corp. (SMTS), down 24% to $19.21 on news of an analyst downgrade.
• Cougar Biotechnology, Inc. (CGRB), down 22% to $18.10.

Volume leaders:

• SiRF Technology Holdings, Inc. (SIRF) 4,948,700 shares traded.
• R.H. Donnelley Corp. (RHD) 4,414,800 shares traded.
• Hovnanian Enterprises, Inc. (HOV) 4,018,900 shares traded.

The day saw 234 small-cap stocks set 52-week lows, while five small caps established a 52-week high.