Small caps to open higher as CPI comes in tame

Small-cap shares are expected to open slightly higher, erasing mild overnight losses on the release of CPI data this morning, which came in relatively tame. S&P 500 futures jumped about six handles on the CPI report, moving from negative territory to positive. If the Russell 2000 (NYSE:IWM) matches the early climb in S&P 500 futures, then the Russell should open about 0.2% higher near 738.20.

The CPI headline figure came in at 0.2%, which was below the forecast for a gain of 0.3%. In addition, the ex-food and energy component was pegged at 0.1%, which was below the median projection for a gain of 0.2%.

In overnight trading, big caps on the move include Whole Foods Market Inc. (Nasdaq:WFMI), which tumbled nearly 10% when earnings failed to meet expectations. Deere & Co. (NYSE:DE) was off nearly 6% despite a 22% jump in quarterly profits. The world’s largest maker of tractors cautioned that rising raw material costs could crimp operations the rest of 2008, which sparked the pullback in shares . . .

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below