Tag - KIDS

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are moving up and down with no clear direction.
 
At 10:27 a.m. ET, the small-cap index was down 1.88 points, or 0.27%, to 702.98. The Dow Jones Industrial Average (INDU) was up 37.23 points, or 0.30%, to 12,626.30.

With little news on the economic front, stocks are looking for meaning and direction in today’s trading.

The Mortgage Bankers Association reported before the start of trading that mortgage loan application volume for the week ended Jan. 4 increased 32.2%. But the statistics are misleading, because the preceding included the Christmas and New Year holidays.

The four-week moving average, a more stable measure, is down 4.1% to a reading of 624.4 from 650.8.

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

Biggest percentage gainers:

• BabyUniverse, Inc. (KIDS), up 17%.
• Tredegar Corp. (TG), up 13%.
• ICF International, Inc. (ICFI), up 12% on news of an analyst upgrade.

Biggest percentage losers:

• Spectrum Control, Inc. (SPEC), down 36% an analyst has reduced the stock’s target price.
• Premier Exhibitions, Inc. (PRXI), down 22% on news it expects fiscal 2008 earnings to be below expectations.
• West Coast Bancorp (WCBO), down 13% on news it will suffer a pre-tax provision for credit losses of $30 million.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting gains on news of a better-than-expected jobs report.
 
At 10:47 a.m. ET, the small-cap index had added 0.97 points, or 0.13%, to 754.52. The Dow Jones Industrial Average (INDU) was up 28.61 points, or 0.22%, to 13,072.57.

Stocks both small and large are in positive territory following the release of a report that showed higher-than-expected U.S. private sector job growth.

Nonfarm private employment increased 40,000 in December, according to Automatic Data Processing, Inc. (NYSE: ADP). The provider of business outsourcing solutions said that small- and medium-sized businesses more than accounted for the rise, adding 75,000 jobs. Meanwhile, larger companies cut 35,000 jobs.

ADP said that the gain was greater than forecasted, but warned that the numbers show a slowing of nonfarm private employment. The three-month period from September through November averaged 118,000 new jobs.

The data is consistent with a slowing economy.

The Russell 2000 (NYSE: IWM) rebounded after three consecutive losses as investors cheered upbeat earnings news from Goldman Sachs. The small-cap index advanced 15.00 points, or 2.03%, to 754.06. The Dow Jones Industrial Average (INDU) rose 65.27 points, or 0.50%, to 13,232.47.

On a year-to-date basis, the Russell 2000 is down 4.24%, while the Dow is up 6.08% and the S&P 500 has added 2.71%.

Small-cap stocks began and ended the session on a bullish note following news that investment bank Goldman Sachs Group Inc. (NYSE: GS) reported a rise in fourth-quarter profit and beat Wall Street’s expectations.

Unlike many of its rivals, Goldman Sachs has not been seriously affected by the meltdown in the subprime mortgage sector. However, the New York-based company cautioned that some of the world’s capital markets will remain in turmoil in the near future.

Investors apparently disregarded the warning, just like they did news that U.S. housing starts in November declined 3.7% to a seasonally adjusted annual rate of 1.187 million, according to the Census Bureau.

That’s the slowest pace in 16 years but a whisker above the annual rate forecasted by economists. November housing starts are 24.2% below the revised annual rate of 1.565 million units in November 2006.

The same report also showed that building permits, a sign of future construction, fell 1.5% to an annual rate of 1.152 million. That decline is in line with economists’ projections.

Separately, the International Council of Shopping Centers announced that U.S. retailers saw chain store sales grow 1.4% for the week ending Dec. 15.

“Unfortunately, retailers were battered by several forces this past week, including storms and a procrastinating consumer,” said Michael Niemira, the trade association’s chief economist, in a statement. “According to an ICSC-UBS household holiday-tracking survey, consumers are completing their holiday shopping slower than they have in the last four years since these surveys have been taken.”

The Russell 2000 (NYSE: IWM) is posting strong gains this afternoon. At 2:23 p.m. ET, the small-cap index had climbed 11.00 points, or 1.49%, to 750.06. The Dow Jones Industrial Average (INDU) was up 72.91 points, or 0.55%, to 13,240.11.

Small-cap stocks are comfortably above the flat line despite news of generally unimpressive economic reports.

The International Council of Shopping Centers announced before the start of trading that U.S. retailers saw chain store sales grow 1.4% for the week ending Dec. 15.

“Holiday shopping continues at a moderate pace with some consumers making fewer store visits due to gasoline prices and others just plain procrastinating on completing their shopping lists,” the global trade association said in a statement.

Sales have added 2.1% from the same week in 2006.

A slowdown in consumer spending, which is about 70% of gross domestic product, is one reason why many economists expect that U.S. economic growth will be low in the final quarter of 2007 and into 2008. Pessimists are even forecasting a recession.

The stagnating U.S. housing sector is another factor weighing on the economy.

The U.S. Census Bureau reported before the opening that housing starts in November declined 3.7%, while building permits, a sign of future construction, fell 1.5%.

Privately-owned housing completions in November fell 4.1% to an annual rate of 1,344,000, from a revised October estimate of 1,402,000.

So why are investors bullish?

Probably because Goldman Sachs Group Inc. (NYSE: GS) reported a rise in fourth-quarter profit. The New York-based investment bank, the largest in the world, had a quarterly net income of $3.17 billion, or $7.01 per share, well above analysts’ projected earnings of $6.61 per share.

quotesThe Russell 2000 (NYSE: IWM) posted the largest percentage gain as the major U.S. rallied on news of a plan to ease the pain on subprime borrowers. The small-cap index added 21.31 points, or 2.78%, to 786.95. The Dow Jones Industrial Average (INDU) moved up 174.93 points, or 1.30%, to 13,619.89.

On a year-to-date basis, the Russell 2000 is off 0.06%, while the Dow has climbed 9.18% and the S&P 500 has advanced 6.41%.

The bulls completely dominated today on news that the U.S. government is introducing measures to prevent struggling borrowers with subprime adjustable-rate mortgages from entering foreclosure.

The plan, unveiled by the Bush Administration after the start of trading, will freeze the rates on some subprime mortgages with adjustable rate loans that are set to shift to higher rates, forcing many homeowners into foreclosure. The interest rates on more than one million mortgages will reset higher in 2008, potentially overwhelming borrowers who are currently struggling to make their monthly payments.

Stocks opened strong as investors anticipated news of the relief plan, which has yet to be voted on by the U.S. Congress, with the rally gaining speed after President Bush’s press conference.

As if on cue, the statistics reported by the Mortgage Bankers Association today showed the dire state of the U.S. housing market.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are still in negative territory on fears of an economic slowdown. At 2:27 p.m. ET, the small-cap index had fallen 4.35 points, or 0.58%, to 744.98. The Dow Jones Industrial Average (INDU) was missing 113.15 points, or 0.87%, to 12,896.99.

The U.S. index of leading economic indicators for October unexpectedly fell 0.5%, the Conference Board announced after the start of trading. That’s more than the projected decline of 0.4% and a sign that the economy might be headed for an abrupt slowdown in 2008. The index increased a downwardly revised 0.1% in September.

Only three of the leading ten indicators that make up the index rose in October, the business organization said.

The news raised fears that consumer spending will decline as the slump in the U.S. housing sector and higher energy costs take their toll.

Worries of a coming economic slowdown are what caused stocks to open lower.

On Tuesday the U.S. Federal Reserve forecasted that growth will slow in 2008 and unemployment will creep up slightly from the current level of 4.7% while inflation remains in check.