Tag - LEI

The following is a list of today’s winners and losers within the Russell Microcap Index.

Small caps have been on a rollercoaster ride in Wednesday trading after opening higher, slipping into the red midday and returning to the green in afternoon action as the showdown between crude oil and stocks resumed and investors digested a better-than-expected durable goods order.

At 1:17 p.m. ET, the Russell 2000 (NYSE:IWM) was up 0.16, or 0.02%, to 734.55, while the Dow was up 6.43, or 0.05%, to 12,554.78.

After deflating earlier in the session on news that Saudi Arabia would increase production and that Asian demand could begin to ebb because of high price levels, oil spiked sharply midmorning to resume its upward climb from last week.  At its lowest point of the trading day, the commodity had leaked roughly $3 a barrel.

Though oil reversed course, the dollar remains in the green against the euro and the yen midday, while gold has sold off $7.50 to $900 per troy ounce.

Oil’s climb generally has the affect of pressuring stocks, as traders fear the inflationary impact on consumers’ disposable income for gas, food and discretionary items.

In economic news, small caps were initially lifted this morning after the Commerce Department reported pre-bell that durable goods orders edged down 0.5%; narrower than the forecasted slide of 1%. The bright spot that ignited optimism, however, was on the ex-transportation figure, which was up 2.5%, substantially greater than the consensus forecast of for a gain of 0.5%. Also, orders for non-defense capital goods excluding aircraft leaped 4.2% in April, which is the first increase since December.

Small cap stocks are treading higher at mid-session, as crude oil futures pulled back and new home sales figures edged higher, stealing the limelight from a ghastly consumer confidence number.

At 12:46 p.m. ET. the Russell 2000 (NYSE:IWM) had gained 4.25, or 0.59%, to 728.35, while the Dow edged up 6.52, or 0.05%, to 12486.15. 

After breaching a record level of above $135 last week, crude oil prices shed $1.41 to $130.78 a barrel midday, as the oil market focused on a waning economy and weak consumer sentiment figure. The consumer sentiment gauge clocked in at 57.2, below the forecast of 60 and tumbled to a 16-year low.

“The drop in consumer confidence has got people nervous about the levels of the value of crude, specifically gasoline,” said Andy Busch, global foreign exchange strategist for BMO Capital Markets. “[They’re] thinking that these high prices will eventually encourage people to change habits.”

In other economic news, The U.S. Census Bureau and the Department of Housing and Urban Development reported this morning that sales of new one-family homes grew a greater-than-expected 3.3% in April to a seasonally adjusted annual rate of 526,000 from the revised March rate of 509,000, but was 42% below sales in April 2007. Economists were forecasting sales of 520,000. New home sales marked the largest year-over-year decline in 27 years.

Shares of Lucas Energy, Inc. (AMEX:LEI) are surging this morning after the U.S. based independent oil and gas company said pre-bell that it expects revenue for total proved reserves to increase 150% to $90.1 million for the fiscal year 2008 from $35.9 million last year.

The estimate represents a total net asset value of Lucas Energy's oil and gas properties of $8.82 per share.

During the year, proved developed producing reserves increased 97% to 496.02 from 252.20 in 2007. The total proved estimated net reserves is 1,797,230 barrels of oil and 96.01 cubic feet of gas, representing an increase of 13.6% from 1,583,540 barrels in the year-ago period and an increase of 131.2% from the 41.53 cubic feet of gas.

Shares leapt 22%, or $1.19, to $6.59 at 10:11 a.m. ET. For detailed price information and recent news stories about Lucas Energy, click LEI.