Russell 2000 futures climb

The Russell 2000 (NYSE: IWM) futures have moved up and the small-cap index will open in positive territory.

Wall Street appears set for a bullish opening following a day of steep losses. There is little on the economic docket today, except for news about the U.S. trade deficit in January.

The U.S. Commerce Department reported this morning that the trade deficit increased 0.6% to $58.20 billion in January from December’s downwardly revised $57.86 billion. Economists were expecting the deficit to widen to $59 billion.

Exports increased 1.6%, while imports added 1.3%.

Small-cap stocks extended the freefall Monday, sinking to the lowest daily close since Oct. 27, 2005. By the time the bell put a merciful end to things, the Russell 2000 fell 16.14 points, or 2.45%, to 643.97. Interestingly, the late action in small caps was far more severe on the downside than what took place in large-cap issues. In addition, the index snapped critical chart support from January at 650. Persistent price action below that point would open the door for another leg down in the bear market.

The international trade data this morning could spark some pre-opening volatility in stocks, but that report tends to be more of a market mover in the foreign exchange domain. Look for resistance Tuesday for the Russell at 650, then at 654.50 and 660.

Meanwhile, support is at tentatively at 639 and 634, but since we are now at long-term lows, the next big chart points aren’t until 625 and 614.

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:

• Exelixis Inc. (EXEL), up 15%.
• Inter Parfums, Inc. (IPAR), up 11% on news of a rise in fourth-quarter earnings.
• Somanetics Corp. (SMTS), up 10%.

Biggest percentage losers:

• China Fire & Security Group, Inc. (CFSG), down 9%.
• Fuel Tech, Inc. (FTEK), down 4% despite news of a rise in fourth-quarter earnings.
• Gaiam Inc. (GAIA), down 3% on news of a slight rise in fourth-quarter earnings.

Kevin Pendley contributed to this report.

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