Tag - Big

Small-cap stocks opened lower, tugged down by a sobering picture of the jobs situation in the United States after the monthly employment report showed a staggering number of jobs have been lost in November. At 9:59 a.m. ET, the Russell 2000 (NYSE:IWM) was down 9.58, or 2.18%, at 429.95.

The Labor Department report showed that unemployment climbed to 6.7%, the highest rate since 1993. Meanwhile, the jarring loss of 533,000 jobs in November was the worst decline since December 1974. What’s more, job losses for September and October were revised upward, meaning that the United States shed 1.25 million jobs in the last three months alone and nearly 2 million so far this year. Our neighbors to the north are also feeling the pain, as data this morning revealed that job losses in Canada climbed to the highest point in 26 years.

It will be interesting to see if investors are still willing to bet that all these terrible economic reports are already priced into the stock market and try to jump-start a rally as the day progresses. There has consistently been talk that these dreadful economic reports are simply not surprises anymore; however, one cloud hanging over the market is the fate of U.S. automakers. Some speculate that if General Motors Corp. (NYSE:GM) is forced . . .

Small-cap stocks are expected to open slightly lower, pulled down by a soft tone in equities around the world and by ongoing jitters about financial stocks. Those concerns should be countered, however, by a steep gain in the U.S. dollar and lower crude oil prices. The Russell 2000 (NYSE:IWM) was down about 0.1% overnight, which would suggest an open near 719.50.

Stock markets around the world were mostly lower overnight, with Europe off about 0.5% following dreadful German data. Japan was down 0.7%, Hong Kong off 0.2%, China down 2.8%, Taiwan down 0.9%, Singapore down 0.9% and South Korea down 0.8%. Bank stocks, oil shares and mining stocks were soft in European trading and that pattern could flow into U.S. action this morning.

The U.S. dollar was on a roll heading into the stock market opening, charging to six-month highs against the euro, rising more than 1% in the process. The greenback was also up versus the yen, gaining about 0.4%. The strong dollar took a toll on commodities overnight, with crude oil slipping below $114 a barrel and gold tumbling. Looking ahead today, grains markets are expected to open solidly lower, so the commodity inflation story is upbeat for stock market investors to start the day.

Barring a dramatic move in crude oil, the big story today is expected to come on the data front, with reports on housing and consumer confidence being unveiled . . .

The Russell 2000 (NYSE: IWM) topped a rally in all indices that also saw the Dow rise sharply. The small-cap index added 19.49 points, or 2.54%, to 787.32. The Dow Jones Industrial Average (INDU) gained 247.44 points, or 1.90%, to 13,289.29.

With little news on the economic front, trading was mostly moved by positive news from the technology sector.

The day began with speculation that Apple Inc. (Nasdaq: AAPL) will unveil an improved version of its best-selling iPod at an event on September 5 in San Francisco. The company has a history of introducing new iPods around the holidays.

Scotts Valley, Calif.-based hard-disk maker Seagate Technology (NYSE: STX) added to the bullish sentiment when it announced after Tuesday’s close that it raised its second-quarter guidance to $3.25 billion in revenues and $0.62 to $0.66 per share in net income. Previously, Seagate had forecast revenues of $3 billion and a net income between $0.40 and $0.44 per share. Analysts were projecting $2.98 billion in revenue for a profit of $0.43 per share.

The Russell 2000 (NYSE: IWM) and the Dow are posting modest gains this afternoon. At 1:40 p.m. the small-cap index had gained 6.40 points, or 0.83%, to 774.23. The Dow Jones Industrial Average (INDU) had moved up 90.96 points, or 0.70%, to 13,132.81.

With little news on the economic front, investors are reacting to positive news from the technology sector.

Speculation that Apple Inc. (Nasdaq: AAPL) will unveil new models of its best-selling iPod at an event on September 5 helped ready the bulls this morning. The Cupertino, Calif.-based company has a history of introducing new iPods around the holidays.