Small caps near flat in choppy early action

Small-cap stocks opened higher, briefly slipped into negative territory, then climbed back to flat levels in the first 30 minutes of trading. Some pressure was linked to disappointment over the lack of a big stimulus announcement out of the G-20 meeting, a decline in worldwide stocks overnight, and a mild rise in Libor rates. However, a better than expected result on industrial production helped limit the initial damage. At 9:58 a.m. ET, the Russell 2000 (NYSE:IWM) was up 0.66, or 0.15%, at 457.19.

The market tumbled to the lowest weekly close on Friday in more than five years, and global equities were modestly lower overnight, keeping the bearish frame of mind intact to start today’s action. Japan said that their economy slipped into an official recession, joining a similar designation out of the eurozone from late last week. This marks the first recession for Japan since 2001. Despite the news, Japan’s stock market was actually up overnight, rising by about 0.7%.

Stock index futures bounced off the lows right before the opening when the industrial production report came in at plus 1.3%, which was better than the forecast for a more tame rise of 0.2%. However, there were downward revisions to the history, which took some of the edge off the good news on production. Earlier this morning, the New York Manufacturing Survey also slightly beat the forecast, but was still at the lowest point in seven years. The big economic news now will be Tuesday’s inflation data on producer prices.

Crude oil prices rallied back into positive territory after being down about $1 a barrel earlier this morning. Energy and commodity stocks have been a big drag on the market in recent weeks, but are oversold. On the individual company front on energy, Warren Buffett increased his stake in ConocoPhillips (NYSE:COP), which could be a supportive psychological factor for not just COP, but other energy names if it stirs “copycat” action. So far, the Buffett fans weren’t that moved by the news; COP was down . . .

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