Russell 2000 extends gains
The Russell 2000 (NYSE:IWM) closed in positive territory today as investors disregarded bearish economic news. The small-cap index rose 3.99 points, or 0.57%, to 705.27. The Dow Jones Industrial Average (INDU) fell 16.04 points, or 0.13%, to 12,532.60.
On a year-to-date basis, the Russell 2000 has declined 7.93%, while the Dow is down 5.52% and the S&P 500 has shed 7.86%.
Despite a rocky start, small-cap stocks rose for the third consecutive session as the momentum from Monday’s rally empowered the bulls despite generally bearish economic news.
The Conference Board reported before the opening that its index of consumer confidence fell to a five-year low of 64.5 in March from an upwardly revised level of 76.4 in February. Economists were expecting to see a smaller decline.
The news raised fears that the U.S. economy is in a recession, as consumption comprises about 70% of gross domestic product.
Separately, the Standard & Poor’s/Case-Shiller home price index released before the opening showed that prices of existing U.S. single-family homes fell in January.
The Russell 2000 swung up and down during the first half of the session but settled on an upward trajectory shortly after 12 p.m. ET.
Shares of gold and silver companies were the best-performing industry group. Among the winners was small-cap natural resource exploration and development company New Gold Inc. (AMEX:NGD), which saw its shares rise 4%.
Similarly, Toronto-based Central Sun Mining Inc. (AMEX:SMC) saw its stock rise 6%.
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:
• Origin Agritech Ltd. (SEED), up 39% to $6.54.
• Ascent Solar Technologies, Inc. (ASTI), up 22% to $10.64.
• Willow Financial Bancorp Inc. (WFBC), up 21% to $7.77.
• Irwin Financial Corp. (IFC), down 17% to $6.36.
• Borders Group, Inc. (BGP), down 17% to $5.99 on news it has launched a new contest.
• Symmetry Medical Inc. (SMA), down 13% to $16.14.
• EMCORE Corp. (EMKR) 6,631,000 shares traded.
• Borders Group, Inc. (BGP) 5,451,300 shares traded.
• Standard Pacific Corp. (SPF) 5,210,200 shares traded.
The day saw 17 small-cap stocks set 52-week lows, while nine small caps established a 52-week high.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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