Small caps fall in the red on gloomy consumer survey

After a brief rise after the opening, small-cap stocks headed lower after a gloomy consumer sentiment encouraged sellers.  At 12:25 p.m. ET, the Russell 2000 (NYSE:IWM) was down 7.12, or 0.96%, at 736.26.

The University of Michigan consumer sentiment survey came in at 59.5, which was below the projection of 62. The figure was the lowest May reading in 28 years, and underscores consumer trepidation about lofty gas and food prices.

April housing starts came in at an annualized rate of 1.032 million units, which was well above the forecast of 940,000. In addition, permits were up 4.9%. These numbers, however, are still weak numbers since the number was fueled by multi-family units — not single-family homes.

Oil prices touched new highs, propelled by an increase in Goldman Sachs’ oil price estimate to $141 a barrel in late 2008. In midday Friday action, crude futures were up $2.63 to $126.75 a barrel in New York.

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

Already a member? Please log in below