Russell 2000 trims morning losses

The Russell 2000 (NYSE:IWM) has pared some of its earlier losses as investors take a second look at economic and financial data.

At 11:48 a.m. ET, the small-cap index was down 0.70 points, or 0.10%, to 687.46. The Dow Jones Industrial Average was off 21.90 points, or 0.18%, to 12,303.52.

Small-cap stocks began the session lower but have since been moving erratically, twice briefly venturing into the green, as investors try to make sense of mixed news.

The major bearish news came before the start of trading when Wachovia Corp. (NYSE:WB), the fourth-largest U.S. bank, reported that it swung to a first-quarter loss. The Charlotte, N.C.-based company also cut its dividend and said that it will sell common and preferred stock to raise capital.

The announcement led to declines in the financial services sector. Among those whose stock price is sagging is small-cap multi-bank holding company . . .

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