Russell 2000 closes with razor-thin gain

Alex Alexandrov | Apr 04, 2008 4:46pm EDT | Comment

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The Russell 2000 (NYSE:IWM) managed a miniscule last-minute rise despite news of a weak government jobs report. The small-cap index climbed 0.16 points, or 0.02%, to 713.73, its fifth consecutive rise. The Dow Jones Industrial Average fell 16.61 points, or 0.13%, to 12,609.42.

On a year-to-date basis, the Russell 2000 has declined 6.83%, while the Dow is down 4.94% and the S&P 500 is off 6.67%.

Small-cap stocks began the day in the red following news before the opening that payrolls fell by a larger-than-expected 80,000 in March, according to the U.S. Labor Department. The same report also revised higher the job losses from the previous two months.

The March unemployment rate rose to 5.1%, the highest level in more than two years, from 4.8% in February.

“The job loss numbers today make it all but certain that the economy entered a recession in the first quarter,” said Arun Raha, vice president of economic research and consulting for the North American operations of reinsurance company Swiss Re, in an email. “And if we are not in a recession yet, then there is now an 80% chance that we'll be in one soon.”

The Russell 2000 stumbled out of the gate, falling to a session low of below 710 around 10:20 a.m. ET, before turning around and rising into positive territory at 11 a.m. ET. The index again fell below the flat line shortly after 3 p.m. ET but rebounded in the final minutes of trading.

Among the small-cap losers today was AZZ Inc. (NYSE:AZZ). The Fort Worth, Texas-based electrical equipment and components manufacturer reported before the opening that fourth-quarter revenue fell while earnings increased.

“We continue to benefit from strong market conditions, favorable product mix and expanded served markets,” CEO David Dingus said in a conference call. “International opportunities continue to play an important role in our growth potential and backlog recovery.”

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:

• DRAXIS Health Inc. (Nasdaq:DRAX), up 20% to $5.90 on news it is being acquired by Jubilant Organosys for about $255 million.
• EuroBancshares Inc. (Nasdaq:EUBK), up 20% to $6.10.
• Landry’s Restaurants, Inc. (NYSE:LNY), up 17% to $17.91 on news the company’s CEO has lowered his bid to $21 per share from $23.50 per share.

Biggest percentage losers:

• Orthofix International N.V. (Nasdaq:OFIX), down 24% to $30.21 on news the company’s CFO has resigned.
• DemandTec Inc. (Nasdaq:DMAN), down 23% to $8.41 on news of an analyst downgrade.
• AZZ Inc. (NYSE:AZZ), down 17% to $31.88 on news of a decline in fourth-quarter revenue.

Volume leaders:

• USEC Inc. (NYSE:USU) 14,495,200 shares traded.
• Dendreon Corp. (Nasdaq:DNDN) 6,034,900 shares traded it has raised about $46 million.
• FairPoint Communications, Inc. (NYSE:FRP) 4,744,500 shares traded.

The day saw 12 small-cap stocks set 52-week lows, while 11 small caps established a 52-week high.