Tag - :CFC

Small-cap stocks took flight Thursday, soaring to the highest daily close since Jan. 2, powered by a rally in the downtrodden financial sector and by money flow away from commodities and debt markets into stocks. The latter trends were likely boosted by a tumble in crude oil, which slipped below $127 dollars a barrel, and by a rally in the U.S. dollar, which climbed about 0.8% against both the euro and the yen. The Russell 2000 (NYSE:IWM) rose 7.09, or 0.96%, to 745.55, but did slip late off the highs when a test of key resistance near 750 attracted sellers.

Shortly after the regular market close, Dell Inc. (Nasdaq:DELL) reported earnings above the forecast, and the stock climbed about 5% on the immediate response in after-hours trading, which could provide a boost to stocks in general overnight if the buying interest remains in place.

Small-cap stocks assumed a leadership role on the rally Thursday compared with large-cap index products, and have in fact held up better recently even on down days — a possible sign that stocks are not as vulnerable at these levels as was feared.

“Small caps have been outpacing large caps on the open corporate debt market and firm credit conditions,” Nick Kalivas, vice president of financial research at MF Global told SmallCapInvestor.com in an email interview. “Risk-taking has picked up over the past two months given the dynamics in the corporate bond market.” He noted that the rest of the rise versus large caps is more index-related, tied to the underlying stocks in each product.

Kalivas also said that month-end window dressing had a role in the rally today in stocks, with pharmacy and financial shares attracting buyers while energy and commodity markets, which had been the hot zone, were pulled down by profit-taking. What’s more, Kalivas said that small caps have a timing tendency to rally at the turn of the month, and that appeared to be taking place once again.

The Commodity Futures Trading Association today announced a sweeping investigation into crude oil futures trading, and Kalivas said that news could be helping out . . .

Small-cap shares opened in the red Tuesday, and continue to recoil in the shadow of the highs set after last week’s employment report pushed the market to a four-month peak. At 9:50 a.m. ET, the Russell 2000 (NYSE:IWM) was off 3.97, or 0.55%, at 720.37. Renewed jitters about the housing market and credit crunch appear to be in play, especially after Countrywide Financial Corp. (NYSE:CFC) took a big hit Monday and then Fannie Mae (NYSE:FNM) tumbled 3.2% on the opening after soft earnings.

Another factor weighing on the market is a firm tone in crude oil prices, which hit record highs Monday and then topped that record again this morning. Crude prices have been bid up on supply issues out of Africa and concern that conflict in Northern Iraq could endanger the pipeline in that area, but Nigeria is back to normal production after a multi-day strike and Iraq is old news. However, a prominent analyst firm reportedly raised its outlook for crude oil prices, which may have driven buyers back into the fray. It should be noted that any supply side bullish issues are being played out against a backdrop of softer demand as consumers shy away from record high pump prices ahead of the key summer driving season in the United States.

The political arena seems to have retreated a tad in recent weeks even though the Democratic race for a candidate is still up in the air. However, there are two big Democratic primaries on tap today in Indiana and North Carolina, which . . .

Small-cap stocks were expected to open lower, in line with overnight declines tied to firm energy prices and renewed fretting about companies with ties to the banking, financial and mortgage arena. The Russell 2000 (NYSE:IWM) was off about 0.5% in after-hours trading, which would translate to a cash opening near 721.

Fannie Mae (NYSE:FNM) posted earnings that disappointed the market, which only served to further stoke concerns about the housing slump and credit market crunch. Fannie Mae shares were down about 8% in overnight trading. The market already was unsettled about financial shares Monday when Countrywide Financial Corp. (NYSE:CFC) tumbled over 10% amid analyst concerns about the mortgage lending firm in the aftermath of a takeover by Bank of America (NYSE:BAC).

Last night, Federal Reserve Chairman Ben Bernanke said that the mortgage markets were still stressed and posed a threat to the economy. He also said that “finding ways to avoid preventable foreclosures is a legitimate and important concern of . . .

Small-cap stocks had a relatively sleepy pullback Monday, as climbing crude oil prices and a soft dollar offset an upside surprise in economic data from the ISM Non-Manufacturing Survey. The Russell 2000 (NYSE:IWM) dipped 1.39, or 0.19%, to 724.35.

The ISM Non-Manufacturing Survey came in at 52%, which was well above the median forecast for 49.5%, but neither investors nor analysts seemed ready to say that an economic growth trend for the services sector was at hand. The report sparked a brief bid in equities when it was released, but it had very little staying power throughout the day and lost the spotlight as crude oil prices began climbing.

Crude oil prices soared to a fresh record high, zooming past $120 dollars a barrel for the first time. Crude prices have jumped about 9% from last week’s low, and remain a concern for the U.S. economy, consumer spending habits and sentiment heading toward the summer driving season.

Even before the crude oil surge, equities were on the defensive this morning following weekend news that Microsoft (Nasdaq:MSFT) had retracted a bid for Yahoo! Inc. (Nasdaq:YHOO), dulling some of the merger and acquisition hype built up by the recent Mars/Wrigley (NYSE:WWY) deal. Investors pounded Yahoo! shares, which tumbled 15% on the news.

In addition to rising energy prices, other commodity markets were on a roll Monday, with the Commodity Research Bureau Index of a broad swath of physical goods climbing 1.4%, with copper prices soaring 3% to a record peak amid supply disruptions out of Chile and a lift from the ISM data. With crude oil prices and other . . .

The Russell 2000 (NYSE: IWM) and the other major U.S. indices posted losses today following mixed housing news and more mortgage concerns. The small-cap index fell 19.09 points, or 2.64%, to 704.86. The Dow Jones Industrial Average (INDU) lost 238.42 points, or 1.86%, to 12,589.07.

On a year-to-date basis, the Russell 2000 has declined 7.99%, while the Dow is down 5.09% and the S&P 500 has shrunk 5.32%.

Small-cap stocks opened in positive territory and then gained more following news of an announcement at 10 a.m. ET that pending U.S. home sales fell 2.6% in November to a reading of 87.6.

The decline is more than what economists were expecting, but investors apparently liked the fact that the figures for October and September were revised higher.

Additionally, the National Association of Realtors reported that it expects existing-home sales to hold steady during the following months before rising later in the year and improving in 2009.

“On the one hand, we have a pent-up demand from the four million jobs added to our economy over the past two years of sales decline,” said Lawrence Yun, NAR chief economist, in a statement. “On the other, consumers continue to wait for additional signs of market stabilization.”

The Russell 2000 (NYSE: IWM) is falling as investors take a dim view of the state of the U.S. housing market. At 1:53 p.m. ET, the small-cap index was down 3.57 points, or 0.49%, to 720.38. The Dow Jones Industrial Average (INDU) was up 3.41 points, or 0.03%, to 12,830.90.

Stocks have trimmed their morning gains and small caps have fallen in the red following news that Countrywide Financial Corp. (NYSE: CFC), the biggest U.S. mortgage lender, is facing swelling debt-protection costs.

There’s speculation that the Calabasas, Calif.-based company, which had liquidity problems last summer due to the meltdown in the subprime mortgage sector, could file for bankruptcy later this week.

That’s a stark reminder of the depth and size of the mess in the subprime mortgage sector, which began as U.S. home prices started to decline in the second half of 2006, leading to a wave of foreclosures and loan delinquencies.

A number of mortgage lenders have called it quits since then, but Countrywide will potentially be the biggest casualty yet.

That has apparently spooked investors.

Shortly after the start of trading the National Association of Realtors reported that pending U.S. home sales fell a more-than-expected 2.6% in November to a reading of 87.6. The October reading was an upwardly revised 89.9. The figure for September was also revised higher.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices raced ahead today on news of solid earnings from big players. The small-cap index added 15.28 points, or 1.90%, to 821.39. The Dow Jones Industrial Average (INDU) gained 134.78 points, or 0.99%, to 13,806.70.

On a year-to-date basis, the Russell 2000 has increased 4.31%, while the Dow has added 10.68% and the S&P 500 has gained 8.38%.

Futures were pointing up and trading began in the green following news that Microsoft Corp. (Nasdaq: MSFT) increased its first-quarter net income 23% to $4.29 billion, or $0.45 per share, above the $0.39 per share projected by analysts. The rise was due to a whooping 87% growth in the company’s entertainment and devices segment, primarily due to strong sales of its video game “Halo.”
 
Adding to the upbeat pre-market sentiment was Countrywide Financial Corp. (NYSE: CFC), the largest mortgage lender in the United States, which said that it will return to profitability in the fourth quarter after losing money in the third quarter due to the meltdown in the subprime mortgage sector.

The bulls took control of trading out of the gate and kept their feet to the pedal throughout the session. With positive earnings news grabbing the headlines, the bears decided to sleep.

But there was some negative news, coming in the form of a larger-than-expected drop in October consumer confidence. The Reuters/University of Michigan final sentiment index fell to a reading of 80.9, the lowest level in more than a year. Economists were expecting to see a decline to a level of 82 from 83.4 in September.

The Russell 2000 (NYSE: IWM) is posting gains midway though the session, buoyed by earnings news. At 1:34 p.m. ET, the small-cap index had added 8.66 points, or 1.07%, to 814.77. The Dow Jones Industrial Average (INDU) was up 78.12 points, or 0.57%, to 13,750.04.

Trading began on a bullish note as investors responded to news that Microsoft Corp.’s (Nasdaq: MSFT) first-quarter earnings beat Wall Street’s projections. The Redmond, Wash.-based company posted a stunning 87% growth in its entertainment and devices segment, primarily due to strong sales of its video game “Halo.”

Meanwhile, Countrywide Financial Corp. (NYSE: CFC), the largest mortgage lender in the United States, said that it will return to profitability in the fourth quarter and outpace projections after taking a hit in the third quarter due to the meltdown in the subprime mortgage sector this summer.

In small-cap news, industrial products maker Graham Corp. (AMEX: GHM) increased its quarterly profit seven-fold, while Gulf Island Fabrication, Inc. (Nasdaq: GIFI) stumbled after missing analysts’ third-quarter profit expectations.

Elsewhere, the U.S. dollar has fallen to another all-time low against the euro. One greenback can now be exchanged for 0.695 of the currency adopted by 13 countries in the 27-member European Union. This morning the dollar was at 0.698 euros.

The weak dollar is contributing to another rise in the price of oil, which is denominated in the U.S. currency. A barrel of oil now costs $90.99, up $0.53. Earlier in the day the price of oil was closer to $92 a barrel.

The Russell 2000 (NYSE: IWM) is the top performer as the major U.S. indices rise on news of upbeat earnings.

At 10:25 a.m. ET, the small-cap index had gained 9.11 points, or 1.13%, to 815.22. The Dow Jones Industrial Average (INDU) was up 94.78 points, or 0.69%, to 13,766.70.

The small-cap futures were pointing north following news that Microsoft Corp. (Nasdaq: MSFT) reported after Thursday’s close that its first-quarter earnings beat analysts’ expectations, mainly due to strong sales of the videogame “Halo.”  The Redmond, Wash.-based also raised its outlook for the full fiscal year.

Contributing to the upbeat sentiment is Countrywide Financial Corp. (NYSE: CFC), the largest mortgage lender in the United States, which announced that it will return to profitability in the fourth quarter and beat Wall Street’s expectations. The New York-based company also reported a third-quarter net loss, its first in a quarter century, due to the meltdown in the subprime mortgage sector this summer.

Among small-cap companies, Callidus Software Inc. (Nasdaq: CALD) has been left behind after reporting a wider-than-expected third-quarter net loss.

In economic news, U.S. consumer confidence tumbled more-than-expected. The Reuters/University of Michigan final sentiment index fell in October to a reading of 80.9, the lowest level in more than a year. Economists were expecting to see a decline to a level of 82. The index was at 83.4 in September.

The Russell 2000 (NYSE: IWM) futures are rising and the small-cap index is set for a bullish opening on positive earnings news.

Microsoft Corp. (Nasdaq: MSFT) reported after the close on Thursday that its first-quarter earnings beat analysts’ expectations due to strong sales of the videogame “Halo.”  The Redmond, Wash.-based also raised its outlook for the full fiscal year.

Contributing to the upbeat sentiment is troubled mortgage lender Countrywide Financial Corp. (NYSE: CFC), which announced that it will return to profitability in the fourth quarter. The New York-based company also reported a third-quarter net loss, its first in 25 years.

Like other mortgage lenders, Countrywide took a hit this summer due to the meltdown in the subprime mortgage sector.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Sierra Wireless Inc. (SWIR), up 14% on news of higher third-quarter earnings.
• FalconStor Software Inc. (FALC), up 11% on news of a strong third-quarter.
• Ikanos Communications Inc. (IKAN), up 11% despite news of a wider third-quarter loss.

Biggest percentage losers:

• Trident Microsystems Inc. (TRID), down 28% on news that quarterly financial results missed expectations.
• Online Resources Corp. (ORCC), down 19% on news of fourth-quarter guidance below projections.
• LSI Industries Inc. (LYTS) down 16% on news it did not provide a guidance for fiscal 2008.

An abrupt late-session reversal pushed down the Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU), wiping out strong gains that came despite weak retail sales. The small-cap index lost 10.21 points, or 1.21%, to 834.98. The Dow tumbled 63.57 points, or 0.45%, to 14,015.12.

On a year-to-date basis, the Russell 2000 is up 6%, while the Dow has advanced 12.4%.

Small caps were on track for a strong close and the Dow was in record territory until about 2 p.m. ET, when an abrupt turnout erased all gains and resulted in steep losses.

There appear to be a number of factors that combined to push equities off the cliff.

Financial services giant JPMorgan Chase & Co. (NYSE: JPM) announced staff reductions due to the lower volume of leveraged finance and structured credit, while also lowering its sales estimate for Chinese search engine Baidu—a move that resulted in a decline of major U.S. tech stocks.

Meanwhile, Countrywide Financial Corp. (NYSE: CFC) announced that September mortgage lending tumbled a stunning 44.3% from a year earlier due to tighter lending standards and the ongoing housing slump.

Trading got off to a bullish start following news that Wal-Mart Stores Inc. (NYSE: WMT) raised its third-quarter profit outlook.

Positive news from the world’s largest retailer overshadowed generally weak same-store results for September. Retailers blamed the warm weather, which made it difficult to sell cold-weather items.

The Russell 2000 (NYSE: IWM) and the Dow moved up today following good news from major players and a moderately upbeat jobs report. The small-cap index was the least impressive performer of the major U.S. indices, adding 2.45 points, or 0.31%, to 780.35. The Dow Jones Industrial Average (INDU) closed up 133.23 points, or 1.00%, to 13,424.88.

Stocks opened with modest gains following news that General Motors Corp. (NYSE: GM) received an analyst upgrade. Citi Investment Research, the research arm of financial services giant Citigroup Inc. (NYSE: C), recommended as a “buy” shares of the Detroit-based automaker.

Citi justified its decision by saying that the stock price could potentially double should United Auto Workers agree to support a union-managed health-care fund. Today shares jumped 10%, to close at $33.14.

Also contributing to the bullish sentiment before the start of trading was McDonald’s Corp. (NYSE: MCD), based in Oak Brook, Ill. The world’s largest fast-food restaurant chain reported after the close on Wednesday that it is raising its annual dividend by $0.50 and plans on returning between $15 billion and $17 billion in cash to shareholders between 2007 and 2009.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index is likely to rise after the opening bell.

With little on the economic front, business news is grabbing the headlines this morning.

The Wall Street Journal is reporting that private equity firm Kohlberg Kravis Roberts & Co. is willing to make a concession to the banks financing its buyout of electronic commerce services provider First Data Corp. (NYSE: FDC).

The Russell 2000 (NYSE: IWM) stumbled and the Dow ended the day a hair below the flat line as investors tried to make sense of the U.S. mortgage sector. The small-cap index fell 10.31 points, or 1.29%, to 788.25, snapping a five day winning streak. The Dow Jones Industrial Average (INDU) lost 0.25 points, or 0.00%, to 13,235.88.

Stocks got off to a positive start this morning following news that Bank of America Corp. (NYSE: BAC) bought a $2 billion stake in mortgage lender Countrywide Financial Corp. (NYSE: CFC).

Investors took the deal, which was inked after Wednesday’s close and has received regulatory approval, as a sign that Countrywide can rely on the financial support of America’s second largest bank to see it through the ongoing slump in the U.S. housing sector.

The Calabasas, Calif.-based company, the largest U.S. mortgage lender, has been struggling to find the funds necessary to stay afloat while dealing with rising delinquencies and foreclosures. On August 16 Countrywide had to tap an $11.5 billion credit line to boost its liquidity.

The Russell 2000 (NYSE: IWM) is down sharply and the Dow is following on fears that the U.S. economy may be slowing down. At 2:25 p.m. the small-cap index had lost 7.23 points, or 0.91%, to 791.33. The Dow Jones Industrial Average (INDU) has shed 20.41 points, or 0.15%, to 13,215.72.

The slump in the U.S. housing sector could lead to broader economic problems, according to Angelo Mozilo, CEO of mortgage lender Countrywide Financial Corp. (NYSE: CFC). Appearing on CNBC television, Mozilo said that he believes the high level of delinquencies and foreclosures, combined with turmoil in the stock markets, will drag down the economy. Moreover, he said he does not think that the industry environment is improving.

The Russell 2000 (NYSE: IWM) is down while the Dow Jones Industrial Average (INDU) is holding on to a slim gain on good news from the U.S. mortgage sector.

At 10:18 a.m. ET the small-cap index had lost 5.93 points, or 0.74%, to 792.63. The Dow was up 11.38 points, or 0.09%, to 13,247.51.

Stocks opened in positive territory following news that Bank of America Corp. (NYSE: BAC) has bought a $2 billion stake in troubled mortgage lender Countrywide Financial Corp. (NYSE: CFC). The deal, which was announced after Wednesday’s close and has since been approved by regulators, is a welcome reprieve for Countrywide, the largest U.S. mortgage lender.

Over the past couple of weeks the Calabasas, Ca.-based company has struggled to find the funds necessary to stay afloat and has had to deal with rising delinquencies. The deal is likely to persuade investors that the lender has solid backing that it can rely on to survive the subprime meltdown.

The Russell 2000 (NYSE: IWM) futures are pointing higher and the small-cap index is ready to go up following good news about a major U.S. lender and a fall in jobless claims.

Bank of America Corp. (NYSE: BAC) has bought a $2 billion stake in troubled mortgage lender Countrywide Financial Corp. (NYSE: CFC). The deal, which was announced after Wednesday’s close and has since been approved by regulators, is a welcome reprieve for Countrywide, the largest U.S. mortgage lender.

In the past couple of weeks the Calabasas, Ca.-based company has struggled to find the funds necessary to stay afloat and has had to deal with rising delinquencies.

A day of rollercoaster trading ended with a late turnaround that lifted the Russell 2000 (NYSE: IWM) to a gain of more than 2%, while the Dow almost broke even. The small-cap index added 17.29 points, or 2.30%, to 768.83, snapping a three-day losing streak. The Dow Jones Industrial Average (INDU) fell 15.69 points, or 0.12%, to 12,845.78, its sixth consecutive decline.

Stocks were volatile today, with the Dow twice falling more than 300 points and the Russell bouncing on both sides of the flat line, shedding more than 1% at 1 p.m. ET before swinging just as much in the opposite direction less than two hours later.

The morning began with bearish news that housing starts in July decreased 6.1% to a seasonally adjusted 1.381 million annual rate, the lowest in 10 years. Economists were expecting a more modest decline to an annual pace of 1.41 million, following an increase of 2.1% in June to 1.47 million.

That indicates that the slump in the U.S. housing sector, which began in the second half of 2006 and has since resulted in a wave of foreclosures and delinquencies, is not letting up.

The Russell 2000 (NYSE: IWM) and the Dow are dropping following more bad news about the U.S. economy. At 2:48 p.m. the small-cap index was down 4.93 points, or 0.66%, to 746.61. The Dow Jones Industrial Average (INDU) had shed 243.54 points, or 1.89%, to 12,617.93.

Manufacturing activity in the mid-Atlantic region didn’t increase in August, the Philadelphia Federal Reserve Bank announced at 12 p.m. ET.

The regional Fed bank’s index of manufacturing activity showed a reading of 0, compared with a reading of 9.2 in July. The majority of firms reported no change in activity from July, while 21% of firms reported a decrease, the same percentage as those reporting an increase.

The Russell 2000 (NYSE: IWM) and the Dow abruptly reversed their earlier course and fell hard following more news of credit troubles. The small-cap index lost 11.33 points, or 1.49%, to 751.54, its third consecutive decline and its lowest close since November 2006, The Dow Jones Industrial Average (INDU) dropped for the fifth straight day, falling 167.45 points, or 1.29%, to 12,861.47, the first time it has closed below 13,000 since April 24.

Stocks were rising but had their wings clipped at about 2 p.m. ET when financial services giant Merrill Lynch & Co. (NYSE: MER) downgraded home lender Countrywide Financial Corp. (NYSE: CFC) to “sell” from “buy,” citing concerns that liquidity problems could overwhelm the company.

Investors saw that as the latest sign of spreading fallout from the meltdown in the subprime mortgage market.

The ensuing sell-off was steep, with the Russell 2000 losing a cumulative total of more than 20 points in two hours, while the Dow shed more than 200 points.

The Russell 2000 (NYSE: IWM) rose while the Dow slipped on a day of volatile trading due to global credit worries that prompted the U.S. Federal Reserve to get involved. The small-cap index added 3.91 points, or 0.50%, to 788.78. The Dow Jones Industrial Average (INDU) fell 31.14 points, or 0.23%, to 13,239.54.

For the entire week, the Russell 2000 index gained 33.37 points, or 4.42%. The Dow gained 54.63 points, or 0.44%.

Concerns of tighter liquidity spread globally overnight, forcing central banks in Europe and Asia to inject billions into the money markets to bring down interest rates and calm shaken investors.

In the United States, the Fed added reserves three times during the day, for a total of $38 billion. That brought the federal funds rate, the rate that banks charge each other for overnight loans, back down to 5.25%, after it had floated up to 6% earlier this morning.

Globally, more than $300 billion has been injected in the last 48 hours to boost liquidity.

The Russell 2000 (NYSE: IWM) and the Dow posted solid gains following a strong rally late in the afternoon. The small-cap index added 10.97 points, or 1.45%, to 766.39. The Dow Jones Industrial Average (INDU) rose 286.87 points, or 2.18%, to 13,468.78. That’s more than it lost during the sell-off on Friday, Aug. 3.

With little news on the economic front, the financial sector set the tone for today’s trading.

The session got off to an optimistic start after news this morning that financial services giant UBS raised its rating on Merrill Lynch & Co., Inc. (NYSE: MER), the world’s largest brokerage house, to “buy” from “neutral.”

While warning that the industry will continue to experience problems due to the mortgage and credit markets for the foreseeable future, UBS stated that the major brokerage houses are strong enough to handle credit losses caused by the turmoil in the subprime credit market.

The Russell 2000 (NYSE: IWM) went into freefall and the Dow Jones Industrial Average (INDU) tumbled on fears of problems in the U.S. credit market. The small-cap index fell 23.76 points, or 2.84%, to 811.86, its biggest point drop since Feb. 27, to the lowest closing level since April 11, when it ended at 808.24. The Dow lost 226.47 points, or 1.62%, to 13,716.95.

Investors opted for the exits after poor quarterly earnings from key industry players sparked fears that the fallout from the sagging U.S. housing sector has spread beyond the subprime lending market.

Calabasas, Calif.-based Countrywide Financial Corp. (NYSE: CFC), which is the largest U.S. mortgage lender and a barometer of the state of the housing sector, started the day’s bearish mood when it reported that its second-quarter net income fell about 33%.

CEO Angelo Mozilo blamed softening home prices, rising delinquencies and defaults as borrowers struggled to repay loans taken out before the housing boom came to a halt in the second half of 2006.

The Russell 2000 (NYSE: IWM) has lost three times as much as the Dow Jones Industrial Average (INDU) as stocks drop on news of disappointing earnings and mortgage market concerns.

At 10:50 a.m. ET the Russell 2000 was down 13.19 points, or 1.58%, to 822.43. The Dow had lost 62.02 points, or 0.44%, to 13,881.40.

Calabasas, Calif.-based Countrywide Financial Corp. (NYSE: CFC), which is the largest U.S. mortgage lender and serves as a barometer of the state of the housing sector, reported this morning that its second-quarter net income fell to $485.1 million, or $0.81 per share, compared with $722.2 million, or $1.15  per share, a year earlier.

That’s below the consensus estimate of 14 analysts polled by Thomson Financial, who were looking for earnings of $0.95 per share.

The Russell 2000 futures have turned south and the small-cap index is likely to open in negative territory on concerns that credit problems could dampen corporate earnings.

With little in the way of economic news, investor sentiment is driven by earnings.

Wilmington, Del.-based chemicals company E. I. du Pont de Nemours and Comp. (NYSE: DD), better known as DuPont, reported flat second quarter earnings compared with a year earlier as the depressed U.S. housing sector lowered demand for paint and kitchen countertops.