Russell 2000 moves down
The Russell 2000 (NYSE:IWM) closed lower as fears of an economic slowdown came to the forefront. The small-cap index lost 9.72 points, or 1.38%, to 692.39. The Dow Jones Industrial Average (INDU) declined 120.40 points, or 0.97%, to 12,302.46.
On a year-to-date basis, the Russell 2000 is down 9.61%, while the Dow has shed 7.26% and the S&P 500 is off 9.71%.
The bears dominated most the session today as investors worried that lackluster economic growth could possibly tip into a recession.
Gross domestic product rose at the previously announced annual pace of 0.6% during the fourth-quarter of 2007, the U.S. Commerce Department announced before the start of trading. That’s in line with economists’ expectations but below the 4.9% growth recorded in the third quarter of 2007.
Many observers, among them Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, forecast that the economy will slow down even more in the first quarter of 2008.
“It’s clear the economy is in a slowdown that resembles past periods that were the leading edge of a recession,” Lockhart told the Rotary Club of Chattanooga, Tenn. after the opening. “Following a sluggish fourth quarter, I expect that GDP for the first quarter of this year will show little, if any, growth.”
Those comments cut short a nascent rally. The Russell 2000 spent the morning in the red but climbed into the green at about 12:30 p.m. ET, only to fall again on news of Lockhart’s speech. The index slid down and closed at its lowest level of the session.
Among the losers today was Fred’s Inc. (Nasdaq:FRED). The Memphis-based small-cap company, which uses its retail discount stores and full-service pharmacies to sell merchandise, reported before the opening that it swung to a fourth-quarter loss.
“In the second quarter of this year, we will be rolling out a new revamped marketing campaign,” president Bruce Efird said in a conference call. “We’re looking at the timing of our ads to do a better job of marrying the timing of our circular and print ads to be more effective.”
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:
• Raser Technologies, Inc. (RZ), up 37% to $10.20 on news of an analyst upgrade.
• Nanosphere Inc. (NSPH), up 27% to $10.00.
• Spire Corp. (SPIR), up 26% to $16.27.
Biggest percentage losers:
• BioMimetic Therapeutics, Inc. (BMTI), down 56% to $6.50.
• DSW Inc. (DSW), down 24% to $13.34 on news of fourth-quarter profit below expectations.
• Amerigon Inc. (ARGN), down 15% to $14.49.
Volume leaders:
• EMCORE Corp. (EMKR) 4,551,900 shares traded.
• BioMimetic Therapeutics, Inc. (BMTI) 4,097,900 shares traded.
• Allscripts Healthcare Solutions, Inc. (MDRX) 4,027,000 shares traded on news it will merge with software maker Misys Healthcare Systems.
The day saw 25 small-cap stocks set 52-week lows, while five small caps established a 52-week high.
On a year-to-date basis, the Russell 2000 is down 9.61%, while the Dow has shed 7.26% and the S&P 500 is off 9.71%.
The bears dominated most the session today as investors worried that lackluster economic growth could possibly tip into a recession.
Gross domestic product rose at the previously announced annual pace of 0.6% during the fourth-quarter of 2007, the U.S. Commerce Department announced before the start of trading. That’s in line with economists’ expectations but below the 4.9% growth recorded in the third quarter of 2007.
Many observers, among them Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, forecast that the economy will slow down even more in the first quarter of 2008.
“It’s clear the economy is in a slowdown that resembles past periods that were the leading edge of a recession,” Lockhart told the Rotary Club of Chattanooga, Tenn. after the opening. “Following a sluggish fourth quarter, I expect that GDP for the first quarter of this year will show little, if any, growth.”
Those comments cut short a nascent rally. The Russell 2000 spent the morning in the red but climbed into the green at about 12:30 p.m. ET, only to fall again on news of Lockhart’s speech. The index slid down and closed at its lowest level of the session.
Among the losers today was Fred’s Inc. (Nasdaq:FRED). The Memphis-based small-cap company, which uses its retail discount stores and full-service pharmacies to sell merchandise, reported before the opening that it swung to a fourth-quarter loss.
“In the second quarter of this year, we will be rolling out a new revamped marketing campaign,” president Bruce Efird said in a conference call. “We’re looking at the timing of our ads to do a better job of marrying the timing of our circular and print ads to be more effective.”
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:
• Raser Technologies, Inc. (RZ), up 37% to $10.20 on news of an analyst upgrade.
• Nanosphere Inc. (NSPH), up 27% to $10.00.
• Spire Corp. (SPIR), up 26% to $16.27.
Biggest percentage losers:
• BioMimetic Therapeutics, Inc. (BMTI), down 56% to $6.50.
• DSW Inc. (DSW), down 24% to $13.34 on news of fourth-quarter profit below expectations.
• Amerigon Inc. (ARGN), down 15% to $14.49.
Volume leaders:
• EMCORE Corp. (EMKR) 4,551,900 shares traded.
• BioMimetic Therapeutics, Inc. (BMTI) 4,097,900 shares traded.
• Allscripts Healthcare Solutions, Inc. (MDRX) 4,027,000 shares traded on news it will merge with software maker Misys Healthcare Systems.
The day saw 25 small-cap stocks set 52-week lows, while five 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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