Russell 2000 opens lower
The Russell 2000 (NYSE:IWM) opened in the red as the momentum from Monday’s rally failed to carry over.
At 10:06 a.m. ET, the small-cap index had declined 2.84 points, or 0.40%, to 698.44. The Dow Jones Industrial Average (INDU) was down 73.51 points, or 0.59%, to 12,475.13.
Small-cap stocks opened in positive territory but quickly lost ground. The bears were helped by news before the start of trading that prices of existing U.S. single-family homes fell in January. The Standard & Poor’s/Case-Shiller home price index showed a decline of 2.4% from December 2007, indicating that the slump in the housing sector is far from over. Miami and Las Vegas are the cities worst hit.
Among the small-cap stocks moving this morning is power steering components and systems supplier China Automotive Systems, Inc. (Nasdaq:CAAS), which reported an improvement in fourth-quarter revenue and profit.
Similarly, shares of Zhongpin Inc. (Nasdaq:HOGS) are rising on news before the opening that the Chinese meat and food processing company reported fourth-quarter revenues above expectations.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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