Higher after dip

Small-cap stocks turned higher after a brief morning pullback, underpinned by gains in energy and other commodity stocks, which helped offset a weak tone in financial and real estate shares following dreadful data on manufacturing this morning. At 11:45 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.53, or 0.71% at 502.98.

The very first economic report of 2009 picked up right where the market left off in 2008…in a recession. The ISM Manufacturing Survey came in at 32.4, well below the forecast of 35.4, and at the lowest point in more than a quarter-century. And just as the market has done many times in recent weeks, the bearish economic news was quickly shrugged off on the belief that negative numbers are already priced in.

Looking at sector activity so far today, the top performers are aluminum, coal, metals, mining, tire and rubber, automobile manufacturers, hotels, broadcasters and home entertainment software. Meanwhile, the worst performers were thrifts, various real estate investment trusts, property and casualty insurers, diversified banks, financial ...

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