Tag - Indu

The Russell 2000 (NYSE:IWM) closed lower as fears of an economic slowdown came to the forefront. The small-cap index lost 9.72 points, or 1.38%, to 692.39. The Dow Jones Industrial Average (INDU) declined 120.40 points, or 0.97%, to 12,302.46.

On a year-to-date basis, the Russell 2000 is down 9.61%, while the Dow has shed 7.26% and the S&P 500 is off 9.71%.

The bears dominated most the session today as investors worried that lackluster economic growth could possibly tip into a recession.

Gross domestic product rose at the previously announced annual pace of 0.6% during the fourth-quarter of 2007, the U.S. Commerce Department announced before the start of trading. That’s in line with economists’ expectations but below the 4.9% growth recorded in the third quarter of 2007.

Many observers, among them Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, forecast that the economy will slow down even more in the first quarter of 2008.

“It’s clear the economy is in a slowdown that resembles past periods that were the leading edge of a recession,” Lockhart told the Rotary Club of Chattanooga, Tenn. after the opening. “Following a sluggish fourth quarter, I expect that GDP for the first quarter of this year will show little, if any, growth.”

The Russell 2000 (NYSE:IWM) is firmly in the red after briefly moving into positive territory. At 2:29 p.m. ET, the small-cap index was down 3.07 points, or 0.44%, to 699.04. The Dow Jones Industrial Average (INDU) was down 49.90 points, or 0.40%, to 12,372.96.

Small-cap stocks are again declining after spending about 30 minutes above the flat line shortly before 1 p.m. ET.

The catalyst appears to be news that Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, has made remarks suggesting that the U.S. economy is slipping into recession.

“It’s clear the economy is in a slowdown that resembles past periods that were the leading edge of a recession,” Lockhart told the Rotary Club of Chattanooga, Tenn. “Following a sluggish fourth quarter, I expect that GDP for the first quarter of this year will show little, if any, growth.”

Before the start of trading the U.S. Commerce Department reported that gross domestic product increased at the previously announced annual pace of 0.6% in the last three months of 2007, matching economists’ projections. That’s significantly lower than the 4.9% growth recorded in the third quarter of 2007.

The Russell 2000 (NYSE:IWM) has recovered from its morning losses and is back to its starting position. At 1:13 p.m. ET, the small-cap index had shed 0.42 points, or 0.06%, to 701.69. The Dow Jones Industrial Average (INDU) was up 8.96 points, or 0.07%, to 12,431.82.

For no readily apparent reason, small-cap stocks rose above the flat line at about 12:30 p.m. after spending the morning in the red. The index was in the green for only a few minutes before again slipping into negative territory and then bobbing up and down.

Companies providing construction services are among the top performing industry groups. Atlanta-based Beazer Homes USA, Inc. (NYSE:BZH), a small-cap builder of single-family homes, is seeing its stock add more than 10%.

Similarly, shares of Meritage Homes Corp. (NYSE:MTH) are also higher.

The Russell 2000 (NYSE:IWM) is in negative territory but has narrowed its morning losses.

At 12:16 p.m. ET, the small-cap index had declined 0.63 points, or 0.09%, to 701.48. The Dow Jones Industrial Average (INDU) had retreated 14.00 points, or 0.11%, to 12,408.86.

Economic growth in the fourth quarter of 2007 was as slow as economists were expecting, according to figures released before the opening. The U.S. Commerce Department announced that gross domestic product rose at the previously announced annual pace of 0.6%.

That’s significantly lower than the 4.9% growth recorded in the third quarter of 2007 and a sign that the economy has cooled. Many observers expect to see a contraction when the data for the first quarter of 2008 are released in late April.

In other economic news, the U.S. Labor Department reported before the start of trading that jobless claims for the week ended March 22 fell 9,000 to a downwardly revised level of 375,000. That’s better than what economists were expecting.

The Russell 2000 (NYSE:IWM) opened in the green but quickly lost steam despite news of mixed economic reports.

At 10:12 a.m. ET, the small-cap index had let go 5.07 points, or 0.72%, to 697.04. The Dow Jones Industrial Average (INDU) had advanced 1.63 points, or 0.01%, to 12,424.49.

Small-cap stocks opened higher but could not maintain their grip despite news before the start of trading that fourth-quarter gross domestic product increased as expected.

The economy rose at the previously announced annual pace of 0.6% in the last three months of 2007, according to the U.S. Commerce Department. The numbers match economists’ expectations.

Economic growth during the entire 2007 year was 2.2%, the slowest in five years.

Elsewhere, the U.S. Labor Department reported before the opening that jobless claims for the week ended March 22 fell 9,000.

The Russell 2000 (NYSE:IWM) fell for the first time this week on news of an unexpected decline in February orders for durable goods. The small-cap index lost 3.16 points, or 0.45%, to 702.11. The Dow Jones Industrial Average (INDU) was off 109.74 points, or 0.88%, to 12,422.86.

On a year-to-date basis, the Russell 2000 has shed 8.34%, while the Dow is down 6.35% and the S&P 500 has decreased 8.66%.

Stocks small and large opened in negative territory and never looked up on news before the start of trading that orders for manufactured durable goods fell 1.7% in February, according to the U.S. Census Bureau. Economists were . . .

The Russell 2000 (NYSE:IWM) is firmly in negative territory following the latest news of bearish economic reports. At 2:31 p.m. ET, the small-cap index had retreated 4.93 points, or 0.70%, to 700.34. The Dow Jones Industrial Average (INDU) was down 125.29 points, or 1%, to 12,407.31.

The bears are firmly in control as investors digest news of data that indicate the U.S. economy is in trouble.

Orders for manufactured durable goods fell 1.7% in February, according to the U.S. Census Bureau. Economists were expecting durable goods to increase 0.8% after falling a downwardly revised 4.7% in January.

The same report also showed that orders for nondefense capital goods excluding aircraft, an important measure . . .

The Russell 2000 (NYSE:IWM) is in negative territory on news of an unexpected decline in orders for durable goods.

At 12:37 p.m. ET, the small-cap index had declined 7.27 points, or 1.03%, to 698.00. The Dow Jones Industrial Average (INDU) was down 116.82 points, or 0.93%, to 12,415.78.

Stocks small and large are falling on news before the start of trading that new orders for manufactured durable goods fell 1.7% in February, according to the U.S. Census Bureau. Economists were expecting durable goods to increase 0.8% after falling a downwardly revised 4.7% in January.

The same report also showed that orders for nondefense capital goods excluding aircraft, an important measure of business spending, also declined.

News of the declines adds to fears that economic growth has gone flat.

Separately, the Census Bureau announced after the opening that sales of single-family homes fell 1.8% in February to the lowest reading in more than 10 years. However, the median home price jumped 8.2%.

The Russell 2000 (NYSE:IWM) opened in the red on news that U.S. orders of durable goods unexpectedly declined in February.

At 10:00 a.m. ET, the small-cap index had declined 5.56 points, or 0.79%, to 699.71. The Dow Jones Industrial Average (INDU) was off 89.79 points, or 0.72%, to 12,442.81.

New orders for manufactured durable goods decreased $3.6 billion, or 1.7%, to $210.6 billion in February, the U.S. Census Bureau announced before the opening. Economists were expecting durable goods, which are goods expected to last at least three years, to increase 0.8% after falling a downwardly revised 4.7% in January.

Shipments declined while inventories and unfulfilled . . .

The Russell 2000 (NYSE:IWM) closed in positive territory today as investors disregarded bearish economic news. The small-cap index rose 3.99 points, or 0.57%, to 705.27. The Dow Jones Industrial Average (INDU) fell 16.04 points, or 0.13%, to 12,532.60.

On a year-to-date basis, the Russell 2000 has declined 7.93%, while the Dow is down 5.52% and the S&P 500 has shed 7.86%.

Despite a rocky start, small-cap stocks rose for the third consecutive session as the momentum from Monday’s rally empowered the bulls despite generally bearish economic news.

The Conference Board reported before the opening that its index of consumer confidence fell to a five-year low of 64.5 in March from an upwardly . . .

The Russell 2000 (NYSE:IWM) has established a presence in positive territory despite bearish economic news. At 3:03 p.m. ET, the small-cap index had climbed 3.39 points, or 0.57%, to 705.27. The Dow Jones Industrial Average (INDU) was up 16.69 points, or 0.13%, to 12,565.33.

Small-cap stocks are in the green this afternoon despite disappointing economic news.

The Conference Board reported after the opening that its index of consumer confidence fell to a level of 64.5 in March from an upwardly revised level of 76.4 in February. That’s the lowest level in five years.

The business organization also said that its expectations index is now at a 35-year low, while consumer’s assessment of present-day business conditions also weakened.

The news raised fears that the U.S. economy is in recession, as . . .

The Russell 2000 (NYSE:IWM) has erased its earlier losses and returned to its starting position. At 12:41 p.m. ET, the small-cap index had climbed 1.58 points, or 0.23%, to 702.86. The Dow Jones Industrial Average (INDU) was down 27.35 points, or 0.22%, to 12,521.29.

Small-cap stocks have moved into positive territory after first breaking into the green at 11 a.m. ET and swinging and then going through a period of swinging back and forth.

The upward momentum comes despite news after the start of trading that U.S. consumer confidence fell to its lowest level in five years in March. The Conference Board reported that its index of consumer confidence fell to a . . .

The Russell 2000 (NYSE:IWM) is in negative territory following news of a drop in U.S. consumer confidence.

At 12:10 a.m. ET, the small-cap index was down 0.17 points, or 0.02%, to 701.11. The Dow Jones Industrial Average (INDU) had shed 37.28 points, or 0.30%, to 12,511.36.

Small-cap stocks are in the red after briefly breaking into positive territory at about 11 a.m. ET.

The bears were empowered by news after the start of trading that U.S. consumer confidence fell to its lowest level in five years in March. The Conference Board reported that its index of consumer confidence fell to a level of 64.5 from an upwardly revised level of 76.4 in February.

Economists were expecting a smaller decline. The data add to fears that the U.S. economy is in recession.

“Consumers’ outlook for business conditions, the job market and their income prospects is quite pessimistic and suggests further weakening may be on the horizon,” Lynn Franco, the business organization’s research director, said in a statement.

The Russell 2000 (NYSE:IWM) opened in the red as the momentum from Monday’s rally failed to carry over.

At 10:06 a.m. ET, the small-cap index had declined 2.84 points, or 0.40%, to 698.44. The Dow Jones Industrial Average (INDU) was down 73.51 points, or 0.59%, to 12,475.13.

Small-cap stocks opened in positive territory but quickly lost ground. The bears were helped by news before the start of trading that prices of existing U.S. single-family homes fell in January. The Standard & Poor’s/Case-Shiller home price index showed a decline of 2.4% from December 2007, indicating that . . .

The Russell 2000 (NYSE:IWM) posted a large increase for the second consecutive session on upbeat financial and housing news. The small-cap index advanced 19.86 points, or 2.91%, to 701.28. The Dow Jones Industrial Average (INDU) rose 187.32 points, or 1.52%, to 12,548.64.

On a year-to-date basis, the Russell 2000 has declined 8.45%, while the Dow is down 5.40% and the S&P 500 has lost 8.07%.

Stocks small and large began the day in the green on news before the start of trading that investment bank JPMorgan Chase & Co. (NYSE:JPM) has raised its offer for Bear Stearns (NYSE:BSC) to $10 a share from $2 a share. The move is in response to disgruntled employees at Bear Stearns complaining that the original bid was too low.

The bulls gained strength at 10 a.m. ET, when the National Association of Realtors reported that sales of existing homes rose 2.9% to an annual rate of . . .

The Russell 2000 (NYSE:IWM) is posting big gains as a rally takes hold on Wall Street. At 2:42 p.m. ET, the small-cap index had climbed 22.68 points, or 3.33%, to 704.10. The Dow Jones Industrial Average (INDU) was up 235.43 points, or 1.90%, to 12,596.75.

The bulls are running the show as investors as stocks small and large rally on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has raised its offer for Bear Stearns (NYSE:BSC) to $10 a share from the original bid of $2 a share. JPMorgan has also agreed to guarantee Bear Stearns’ borrowings from the Federal Reserve Bank of New York.

Bear Stearns collapsed under the weight of investments made on securities backed by subprime mortgages.

Speaking of the housing sector, sales of existing homes rose 2.9% in February, the National Association of Realtors reported after the start of trading. Investors took that as a bullish sign because economists were expecting . . .

The Russell 2000 (NYSE:IWM) and the Dow added to their earlier gains on news that existing U.S. home sales rose more than expected in February.

At 11:33 a.m. ET, the small-cap index was up 19.71 points, or 2.89%, to 701.13. The Dow Jones Industrial Average (INDU) had climbed 218.83 points, or 1.77%, to 12,580.15.

Sales of existing homes rose 2.9% to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, the National Association of Realtors reported after the start of trading. Economists were expecting to see a fall.

“We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” said NAR chief economist Lawrence Yun in a statement.

However, the median home price declined 8.2%.

The Russell 2000 (NYSE:IWM) raced ahead on news that a manufacturing index declined less than expected. The small-cap index advanced 17.29 points, or 2.60%, to 681.42. The Dow Jones Industrial Average (INDU) climbed 261.66 points, or 2.16%, to 12,361.32.

On a year-to-date basis, the Russell 2000 has shed 11.05%, while the Dow is down 6.81% and the S&P 500 has retreated 9.46%.

Small-cap stocks opened with a modest rise but picked up steam after 10 a.m. ET, when the Philadelphia Federal Reserve reported that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.

The report is the most-watched regional manufacturing index, considered to be a barometer of manufacturing nationwide. Investors disregarded the fact that the data represent the longest period of contraction in five years and pushed stocks higher.

In other bullish news, an analyst said that mortgage purchases by Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) will help right the mortgage market. Today the federal government adopted changes that allow the two companies to invest more in mortgages and related securities.

The Russell 2000 (NYSE:IWM) and the Dow have added to their earlier gains. At 3:02 p.m. ET, the small-cap index had climbed 16.61 points, or 2.50%, to 680.74. The Dow Jones Industrial Average (INDU) was up 251.23 points, or 2.08%, to 12,350.89.

Stocks small and large are rising on news after the start of trading that a key factory index came in better than expected. The Philadelphia Federal Reserve reported that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.

The numbers show continued weakness and represent the longest period of contraction in five years.

The Russell 2000 (NYSE:IWM) is posting a solid gain on news that a regional manufacturing index came in better than expected.

At 12:22 a.m. ET, the small-cap index was up 9.37 points, or 1.41%, to 673.50. The Dow Jones Industrial Average (INDU) had added 121.38 points, or 1.00%, to 12,221.04.

The Philadelphia Federal Reserve reported after the start of trading that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.

The numbers show continued weakness and represent the longest period of contraction in five years. The percentage of companies expecting to see growth over the next six months was almost the same as the percentage of those expecting a contraction.

With investors bullish, shares of footwear companies are leading the industry group winners.

Nelsonville, Ohio-based Rocky Brands Inc. (Nasdaq:RCKY), which makes shoes in the outdoor, work, duty and western styles, is seeing its stock rise 8%. Similarly, shares of athletic footwear maker K-Swiss Inc. (Nasdaq:KSWS) are also in the green.

Brown Shoe Company, Inc. (NYSE:BWS) and men’s footwear distributor Weyco Group Inc. (Nasdaq:WEYS) are also posting gains.

The Russell 2000 (NYSE:IWM) has started the session in positive territory.

At 10:06 a.m. ET, the small-cap index was up 8.16 points, or 1.23%, to 672.29. The Dow Jones Industrial Average (INDU) had climbed 103.56 points, or 0.86%, to 12,203.22.

Futures turned up in the final minutes of pre-market trading and small-cap stocks opened in the green.

In economic news, the U.S. Labor Department reported before the opening that jobless claims for the week ended March 15 increased 22,000 to 378,000. Economists were expecting to see a much smaller increase.

However, some observers say the rise may be attributed to a temporary autoworkers strike.

The Russell 2000 (NYSE:IWM) posted a decline as investors consolidated their positions following Tuesday’s big rally. The small-cap index declined 17.80 points, or 2.61%, to 664.13. The Dow Jones Industrial Average (INDU) lost 293 points, or 2.36%, to 12,099.66.

On a year-to-date basis, the Russell 2000 has shed 13.30%, while the Dow is down 8.78% and the S&P 500 has let go 11.57%.

Small-cap stocks opened in the green but lost steam and reversed midway through the session. The bullish sentiment in the morning was partially attributed to news that Morgan Stanley (NYSE:MS) beat analysts’ expectations despite reporting a decline in fiscal first-quarter profit.

That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

The Russell 2000 (NYSE:IWM) has reversed and shed its morning gains. At 1:08 p.m. ET, the small-cap index had dropped 3.69 points, or 0.54%, to 678.24. The Dow Jones Industrial Average (INDU) was off 72.54 points, or 0.59%, to 12,320.12.

Small caps lost ground and slipped into the red at about 12 p.m. ET as the morning’s bullish sentiment evaporated. There’s no readily apparent reason for the reversal.

Stocks opened in the green on news that Morgan Stanley (NYSE:MS) saw a decline in fiscal first-quarter profit but still beat expectations. That’s good news for investors worried that the pain that from Bear Stearns (NYSE:BSC) could spread to other investment banks.

Meanwhile, shares of credit card company Visa Inc. (NYSE:V) debuted today with a rise of over 30%.

The Russell 2000 (NYSE:IWM) is in positive territory as the momentum from Tuesday’s jump carries over.

At 10:05 a.m. ET, the small-cap index was up 4.11 points, or 0.60%, to 686.04. The Dow Jones Industrial Average (INDU) had climbed 4.39 points, or 0.04%, to 12,397.05.

Small-cap stocks defied the futures to open higher. The index rose more than 4% on Tuesday on news that the U.S. Federal Reserve has decided to lower its target interest rate 0.75% to 2.25% and better-than-expected quarterly results at major investment banks.

Similarly, the bulls today are helped by news before the opening that Morgan Stanley (NYSE:MS) saw a decline in fiscal first-quarter profit but still beat expectations.

The Russell 2000 (NYSE:IWM) closed with a remarkable gain following news that the U.S. Federal Reserve has lowered its target interest rate. The small-cap index rose 31.45 points, or 4.83%, to 681.93. The Dow Jones Industrial Average (INDU) advanced 420.41 points, or 3.51%, to 12,392.66.

On a year-to-date basis, the Russell 2000 has retreated 10.98%, while the Dow is down 6.57% and the S&P 500 has let go 9.37%.

Small-cap stocks soared higher than their larger counterparts and added to their earlier gains on news after the start of trading that the U.S. Federal Reserve has decided to lower its target interest rate 0.75% to 2.25%.

“Recent information indicates that the outlook for economic activity has weakened further,” the Fed said in a statement. “Growth in consumer spending has slowed and labor markets have softened.”

The market had priced a full 1% of the federal funds rate, the rate at which commercial banks make overnight loans to each other, but policymakers expressed concern about inflation.

The Russell 2000 (NYSE: IWM) and the Dow eased off their session highs following news that the U.S. Federal Reserve has cut its target interest rate. At 2:32 p.m. ET, the small-cap index had added 9.12 points, or 1.40%, to 659.60. The Dow Jones Industrial Average (INDU) was up 125.38 points, or 1.05%, to 12,097.63.

The U.S. Federal Reserve decided to lower its target interest rate 0.75% to 2.25%, the central bank announced at 2:15 p.m. ET. The market had priced a full 1% of the federal funds rate, the rate at which commercial banks make overnight loans to each other.

The Russell 2000, which was up nearly 3% moments before the decision was announced, immediately trimmed its gains.

“Recent information indicates that the outlook for economic activity has weakened further,” the Fed said in a statement. “Growth in consumer spending has slowed and labor markets have softened.”

However, policymakers also showed concern about inflation.

“Inflation has been elevated, and some indicators of inflation expectations have risen,” the statement reads.

The U.S. Labor Department reported before the opening that producer prices, the selling prices received by domestic producers for their output, climbed an expected 0.3% in February. However, core producer prices, which exclude the costs of food and energy, rose 0.5%, above the projected 0.4%.

The Russell 2000 (NYSE:IWM) and the other major U.S. indices are posting bold gains as investors look forward to the pending decision on interest rates.

At 11:47 a.m. ET, the small-cap index had advanced 18.68 points, or 2.87%, to 669.16. The Dow Jones Industrial Average (INDU) was up 285.35 points, or 2.38%, to 12,257.60.

The bulls are on a stampede following news of better-than-expected earnings at major investment banks and speculation of a major cut in the target federal funds rate. The U.S. Federal Reserve is holding its regularly scheduled policy meeting today, with a decision expected at about 2:15 p.m. ET.

The market is pricing a full 1% cut that will lower the federal funds rate, the rate at which commercial banks make overnight loans to each other, to 2% from the current 3%.

In economic news, the U.S. Labor Department reported before the opening that producer prices, the selling prices received by domestic producers for their output, climbed an expected 0.3% in February. However, core producer prices, which exclude the costs of food and energy, rose 0.5%, above the projected 0.4%.

The Russell 2000 (NYSE:IWM) and the Dow are jumping on expectations of a rate cut and news that major investment banks beat quarterly profit expectations.

At 10:08 a.m. ET, the small-cap index had climbed 16.01 points, or 2.46%, to 666.49. The Dow Jones Industrial Average (INDU) was up 238.70 points, or 1.99%, to 12,210.95.

The bulls are roaring and stocks small and large are flying high following news before the opening that fiscal first-quarter profit at investment banking giant The Goldman Sachs Group, Inc. (NYSE:GS) fell 53% but beat Wall Street’s projections. Similarly, Lehman Brothers Holdings Inc. (NYSE:LEH) also beat expectations despite a decline in profit.

That’s good news for investors, who were looking to see if investment banks will be able to weather the financial turmoil, particularly after Bear Stearns’ (NYSE:BSC) spectacular demise.

Helping the bulls establish their dominance is anticipation that the U.S. Federal Reserve will lower its target federal funds rate at its regularly scheduled policy meeting. The market is pricing a full 1% cut in the federal funds rate, dropping it to 2% from the current 3%. A decision will be announced at about 2:10 p.m. ET.

The federal funds rate is the rate at which commercial banks make overnight loans to each other.

The Russell 2000 (NYSE:IWM) declined as news of an emergency sale of Bear Stearns spread fears of financial turmoil. The small-cap index fell 12.42 points, or 1.87%, to 650.48. The Dow Jones Industrial Average (INDU) gained 21.16 points, or 0.18%, to 11,972.25.

On a year-to-date basis, the Russell 2000 has shed 15.08%, while the Dow is down 9.74% and the S&P 500 has retreated 13.06%.

Stocks small and large opened significantly lower on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has purchased Bear Stearns (NYSE:BSC) for just $2 per share, according to an announcement on Sunday.

The buyout was unprecedented, as the U.S. Federal Reserve gave JPMorgan $30 billion in special financing to complete the deal and prevent further financial turmoil. Shares of Bear Stearns were worth over $170 a year ago, but the company was heavily involved in securities backed by subprime mortgages and was dealt a lethal blow by the housing downturn.

The Fed also lowered its discount rate, the rate at which it lends funds to commercial banks, to 3.25% from 3.50%. The central bank will hold a regularly scheduled policy meeting on Tuesday, with investors expecting a steep cut in its target federal funds rate.

The Russell 2000 (NYSE:IWM) has trimmed some of its earlier losses but is still deep in negative territory.

At 11:51 a.m. ET, the small-cap index was down 10.86 points, or 1.64%, to 652.04. The Dow Jones Industrial Average (INDU) had retreated 59.51 points, or 0.50%, to 11,891.58.

Stocks small and large have pared some of their earlier losses but are still down on news that JPMorgan Chase & Co. (NYSE:JPM) has purchased Bear Stearns (NYSE:BSC) for just $2 per share, according to an announcement on Sunday.

In an effort to keep other investment banks from going bankrupt, which is what would have happened to Bear Stearns, the U.S. Federal Reserve gave JPMorgan $30 billion in special financing to complete the deal. That’s a risky and desperate move because if something goes wrong, it will be the Fed — not JPMorgan — that will absorb the losses.

The U.S. Central Bank also lowered its discount rate, the rate at which it lends funds to commercial banks, to 3.25% from 3.50%, on Sunday.

The Russell 2000 (NYSE:IWM) and the other major U.S. indices opened lower as news of Bear Stearns’ collapse made investors nervous.

At 10:11 p.m. ET, the small-cap index was missing 8.67 points, or 1.31%, to 654.23. The Dow Jones Industrial Average (INDU) had shed 56.91 points, or 0.48%, to 11,894.18.

Troubled investment bank Bear Stearns (NYSE:BSC) has been sold for just $2 per share, according to an announcement on Sunday. A year ago the New York-based company, which had been severely affected by the meltdown in the subprime mortgage sector, was worth over $170 per share.

The buyer is rival JPMorgan Chase & Co. (NYSE:JPM), which received about $30 billion in special financing from the U.S. Federal Reserve to complete the deal. That’s the first time in history that the Fed is giving money for one investment bank to buy another and prevent its bankruptcy.

Fear of widespread financial distress led the U.S. Central Bank to lower its discount rate, the rate at which commercial banks borrow from the Fed, to 3.25% from 3.50%, on Sunday.

The Russell 2000 (NYSE: IWM) posted a big loss as news of liquidity problems at Bear Stearns spread credit fears. The small-cap index fell 16.81 points, or 2.47%, to 662.90. The Dow Jones Industrial Average (INDU) declined 194.65 points, or 1.60%, to 11,951.09.

On a year-to-date basis, the Russell 2000 has lost13.46%, while the Dow is down 9.90% and the S&P 500 has retreated 12.27%.

Stocks small and large tumbled today on news that Bear Stearns’ (NYSE: BSC) cash position has deteriorated significantly over the past 24 hours. The investment bank, which has been highly exposed to the subprime mortgage sector, turned to J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve for short-term financing to alleviate its liquidity problems.

There’s speculation that Bear Stearns will soon be purchased by one of its larger rivals. News of the company’s problems spread fears of a severe credit squeeze, leading to a sharp sell-off.

The Russell 2000 (NYSE: IWM) and the Dow have added to their losses as credit fears grip Wall Street. At 3:06 p.m. ET, the small-cap index had dropped 20.32 points, or 2.99%, to 659.39. The Dow Jones Industrial Average (INDU) was missing 275.33 points, or 2.27%, to 11,870.41.

The sell-off has intensified as news of liquidity problems at Bear Stearns (NYSE: BSC) have spread fears of a widening credit squeeze. The investment bank reported shortly after the opening that its cash position deteriorated significantly over the past 24 hours.

The New York-based company turned to J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve for short-term financing to alleviate its liquidity problems. Bear Stearns has been highly exposed to the meltdown in the subprime mortgage sector, first feeling pain last summer when two of its hedge funds went belly up due to bets made on securities backed by mortgages.

The Russell 2000 (NYSE: IWM) and the Dow are deep in negative territory on news of liquidity problems at Bear Stearns.

At 12:23 p.m. ET, the small-cap index had shed 14.42 points, or 2.12%, to 665.29. The Dow Jones Industrial Average (INDU) was down 177.96 points, or 1.47%, to 11,967.78.

The bears are running the show on news shortly after the opening that brokerage house Bear Stearns (NYSE: BSC) has seen its cash position deteriorate significantly over the past 24 hours, necessitating emergency short-term financing from J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve.

Bear Sterns has been among the financial companies most severely affected by the meltdown in the subprime mortgage sector.

In economic news, the University of Michigan reported after the start of trading that its preliminary index of consumer confidence fell to 70.5 in early March from 70.8 in February. Economists were expecting to see a steeper decline.

With stocks falling, shares of airline companies are leading the descent.

The Russell 2000 (NYSE: IWM) began in the green but soon fell deep into the red on news of problems at Bear Stearns.

At 10:05 a.m. ET, the small-cap index was down 13.77 points, or 2.03%, to 665.94. The Dow Jones Industrial Average (INDU) had shed 208.17 points, or 1.71%, to 11,937.57.

Stocks opened in positive territory on news before the opening that consumer prices surprisingly stayed put in February, according to the U.S. Labor Department. The core index, which excludes the costs of food and energy, was also unchanged. Economists were expecting both measures to rise 0.2%.

The numbers make it easier for the U.S. Federal Reserve to lower interest rates when it next meets on March 18; however, consumer prices have increased 4% on a year-over-year basis, above the Fed’s preferred range of between 1% and 2%.

The bullish sentiment evaporated quickly, though, on news that J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve will loan money to Bear Stearns (NYSE: BSC) to help it deal with its liquidity problems.

Bucking the negative trend is Exelixis Inc. (Nasdaq: EXEL). The biotechnology company reported before the start of trading that Genentech Inc. (NYSE: DNA) has exercised the option to further develop and market Exelixis’ experimental cancer drug XL518.

The Russell 2000 (NYSE: IWM) reversed earlier losses and posted a solid gain as investors embraced news of a report that the end of writedowns is near. The small-cap index climbed 12.43 points, or 1.86%, to 679.74. The Dow Jones Industrial Average (INDU) advanced 35.50 points, or 0.29%, to 12,145.74.

On a year-to-date basis, the Russell 2000 has shed 11.26%, while the Dow is down 8.44% and the S&P 500 has decreased 10.41%.

Stocks small and large opened with steep declines but managed to recover midway through the session on news of a report by rating agency Standard & Poor that said the end is in sight for writedowns stemming from the mess in the subprime mortgage sector.

Also helping the bulls establish their dominance was news of a bill proposed by House Financial Services Committee chairman Barney Frank that would allow the U.S. Federal Housing Administration to refinance mortgages that have been written down by lenders.

Small-caps confidently moved into the green at about 12 p.m. ET and never looked back.

The bearish mood in the morning was partially due to news from the U.S. Commerce Department before the opening that retail sales dropped 0.6% in February, defying economists’ forecasts for an increase of 0.2%.

The Russell 2000 (NYSE: IWM) is in positive territory following news of a report that mortgage-related writedowns may come to an end. At 3:26 p.m. ET, the small-cap index had added 11.63 points, or 1.74%, to 678.94. The Dow Jones Industrial Average (INDU) was up 78.73 points, or 0.65%, to 12,188.97.

Writedowns stemming from the mess in the subprime mortgage sector could reach $285 billion, rating agency Standard & Poor’s said in a report after the start of trading. The same report claims that the end of writedowns is in sight for large financial institutions.

Also helping the bulls gain control of the session is news of a bill proposed by House Financial Services Committee chairman Barney Frank that would allow the U.S. Federal Housing Administration to insure and guarantee mortgages that have been written down by lenders. The legislation, which has not yet been voted on, seeks to lower the number of foreclosures.

The Russell 2000 opened with a big decline but confidently moved into the green at about 12 p.m. ET.

The Russell 2000 (NYSE: IWM) has recovered from its morning losses despite news of weak economic reports and more credit worries.

At 12:11 p.m. ET, the small-cap index was up 2.57 points, or 0.39%, to 669.88. The Dow Jones Industrial Average (INDU) was down 42.41 points, or 0.35%, to 12,067.83.

An affiliate of private equity investment firm Carlyle Group is unable to repay more than $16 billion of debt and expects its assets to be seized by lenders, according to news reports. Additionally, the U.S.-based Carlyle Group said after the close on Wednesday that it has suffered a drop in its mortgage investments and has not been able to negotiate a refinancing deal with lenders.

The possibility that the Carlyle Group, which has more than $75 billion under management, could collapse underscores the destructive power of the credit squeeze.

In economic news, the U.S. Commerce Department reported before the start of trading that retail sales unexpectedly fell in February, fueling recession worries. Shortly before 11 a.m. ET, the Russell 2000 was down more than 12 points, or close to 2%, before reversing its decline.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling fast on poor economic news that makes a recession more likely.

At 10:13 a.m. ET, the small-cap index was down 7.33 points, or 1.10%, to 659.98. The Dow Jones Industrial Average (INDU) had shed 133.02 points, or 1.10%, to 11,977.22.

Stocks are falling across the board following news before the start of trading that U.S. retail sales unexpectedly fell in February, while the labor market is showing weakness.

The U.S. Commerce Department reported this morning that sales dropped 0.6% to $380.2 billion, defying economists’ forecasts for an increase of 0.2%. Sales in January posted an upwardly revised gain of 0.4%.

Meanwhile, the U.S. Labor Department announced that the number of workers applying for unemployment benefits was unchanged at 353,000 for the week ended March 8. According to the same report, the number of workers claiming jobless aid increased 7,000 to 2,835,000 for the week ended March 1. That’s the highest level in more than two years.

The Russell 2000 (NYSE: IWM) reversed its earlier gains and fell into negative territory with minutes left in the session. The small-cap index declined 6.50 points, or 0.96%, to 667.31. The Dow Jones Industrial Average (INDU) let go 46.57 points, or 0.38%, to 12,110.24.

On a year-to-date basis, the Russell 2000 has shed 12.89%, while the Dow is down 8.70% and the S&P 500 has decreased 10.87%.

Stocks small and large stumbled with half an hour left in trading, surrendering their earlier gains. Investors were generally bullish and the major U.S. indices spent the majority of the session in the green due to the momentum following the U.S. Federal Reserve’s move on Tuesday to offer up to $200 billion in expanded loans to financial institutions in an effort to ease the credit squeeze.

In economic news, the Mortgage Bankers Association reported before the start of trading that U.S. mortgage applications fell 1.9% for the week ended March 7.

The Russell 2000 (NYSE: IWM) are holding on to their gains as a rally reversed earlier losses. At 12:31 p.m. ET, the small-cap index had added 3.12 points, or 0.46%, to 676.93. The Dow Jones Industrial Average (INDU) was up 73.35 points, or 0.60%, to 12,230.16.

Stocks small and large are in positive territory as investors are apparently riding the momentum from the U.S. Federal Reserve move on Tuesday to make up to $200 billion in expanded loans to financial institutions in an effort to ease the credit squeeze.

Small-cap stocks began rising sharply after hitting a session low at about 10:10 a.m. ET. Shortly before 11 a.m. ET the index pierced the flat line and continued gaining ground.

In economic news, the Mortgage Bankers Association reported before the start of trading that U.S. mortgage applications fell for the week ended March 7. The trade association’s index of mortgage loan application volume fell 1.9% as interest rates climbed to their highest level this year and lowered demand for home loans.

The Russell 2000 (NYSE: IWM) has rebounded from its earlier losses and is posting a solid gain.

At 11:31 a.m. ET, the small-cap index had advanced 6.21 points, or 0.92%, to 680.02. The Dow Jones Industrial Average (INDU) was up 120.25 points, or 0.99%, to 12,277.06.

Small-cap stocks started rising sharply after hitting a session low at about 10:10 a.m. ET. Shortly before 11 a.m. ET the index pierced the flat line and continuing gaining ground.

The bullish development comes without any evident cause.

In economic news, the Mortgage Bankers Association reported before the start of trading that U.S. mortgage applications fell for the week ended March 7. The trade association’s index of mortgage loan application volume fell 1.9% as interest rates climbed to their highest level this year and lowered demand for home loans.

The Russell 2000 (NYSE: IWM) is losing ground despite opening in the green.

At 10:12 a.m. ET, the small-cap index was down 5.25 points, or 0.78%, to 668.56. The Dow Jones Industrial Average (INDU) had lost 4.96 points, or 0.04%, to 12,151.85.

Small-cap stocks opened higher on momentum following Tuesday’s move by the U.S. Federal Reserve to make up to $200 billion in expanded loans to financial institutions in an effort to ease the credit squeeze.

But the bullish mood evaporated in minutes and small caps fell as investors looked for guidance and were unsure which way to go.

One of the biggest losers is Progenics Pharmaceuticals, Inc. (Nasdaq: PGNX). The Tarrytown, N.Y.-based company is seeing its share price halve on news before the opening that late-stage drug clinical trial has failed.

The Russell 2000 (NYSE: IWM) posted a stunning rise on news the U.S. Federal Reserve has moved to increase liquidity. The small-cap index jumped 29.84 points, or 4.63%, its largest increase this year, to 673.81. The Dow Jones Industrial Average (INDU) added 416.66 points, or 3.55%, to 12,156.81.

On a year-to-date basis, the Russell 2000 has declined 12.04%, while the Dow is down 8.35% and the S&P 500 has let go 10.06%.

Stocks soared out of the gate on news before the start of trading that the U.S. Federal Reserve and four other central banks will make expanded loans of cash and securities to financial institutions in an effort to ease the credit squeeze and keep the economy growing.

The Fed said it will lend up to $200 billion of Treasury securities to primary dealers for a term of 28 days. The U.S. central bank usually makes such loans overnight.

The Russell 2000 opened strong and bobbled in the green until halfway through the session, when it settled on an upward trajectory.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting strong gains on news the U.S. Federal Reserve will act to boost liquidity.

At 1:12 p.m. ET, the small-cap index had soared 13.00 points, or 2.02%, to 656.97. The Dow Jones Industrial Average (INDU) was up 204.26 points, or 1.74%, to 11,944.41.

Small-cap stocks are rising on news before the start of trading that the U.S. Federal Reserve and four other central banks will make expanded loans of cash and securities to financial institutions in an effort to ease the credit squeeze.

The Fed said it will lend up to $200 billion of Treasury securities to primary dealers for a term of 28 days. The U.S. central bank usually makes such loans overnight.

Shares of catalog and mail-order retailers are currently the top sector performers in today’s rally.

Small-cap direct marketer of brand name and private-label products Systemax Inc. (NYSE: SYX) is seeing its stock jump more than 25% on news after the close on Monday that the Port Washington, N.J.-based company has tripled its fourth-quarter profit.

Shares of PC Mall Inc. (Nasdaq: MALL), which markets computer hardware and software, and Zones Inc. (Nasdaq: ZONS), which resells IT products, are also in the green.

Also posting a modest gain is video-oriented product solutions provider Sigma Designs, Inc. (Nasdaq: SIGM).

The Russell 2000 (NYSE: IWM) is soaring on news of the U.S. Federal Reserve’s plan to boost liquidity.

At 10:05 a.m. ET, the small-cap index was up 14 points, or 2.17%, to 657.97. The Dow Jones Industrial Average (INDU) had added 233.65 points, or 1.99%, to 11,973.80.

Stocks small and large are flying on news before the start of trading that the U.S. Federal Reserve will make up to $200 billion available to financial institutions. The Fed said that the cash will be lent to banks for a term of 28 days.

Also involved in the plan are the central banks of Canada, the United Kingdom, Switzerland, as well as the European Central Bank.

The move is the latest attempt to pump liquidity into the financial system and ease the credit squeeze that is threatening to push the U.S. economy into a recession.

With stocks rising, one of the biggest small-cap gainers is Systemax Inc. (NYSE: SYX). Shares of the Port Washington, N.Y.-based direct marketer of brand name and private-label products are higher on news after the close on Monday that fourth-quarter sales rose 19%.

The Russell 2000 (NYSE: IWM) closed with a steep loss as recession fears spread on Wall Street. The small-cap index fell 16.14 points, or 2.45%, to 643.97. The Dow Jones Industrial Average (INDU) lost 153.54 points, or 1.29%, to 11,740.15.

On a year-to-date basis, the Russell 2000 has declined 15.93%, while the Dow is down 11.50% and the S&P 500 has shed 13.28%.

The bears dominated the session today as the specter of recession loomed in the background. Friday’s disappointing jobs report, which showed that payrolls plunged 63,000 in February, led many economists to conclude that the U.S. economy is either in or will soon be in a recession.

A report by investment bank The Goldman Sachs Group, Inc. (NYSE: GS) released before the start of trading forecasts that the U.S. Federal Reserve will respond by lowering its target federal funds rate to 2% by late April to give the economy a boost.

The federal funds rate, the rate commercial banks charge each other for overnight loans, currently stands at 3%.

The Russell 2000 was on a steady decline from the start of trading, slowly sliding lower throughout the course of the day. Today’s declines were led by shares of steel companies and shares of companies in the financial services industry.

The Russell 2000 (NYSE: IWM) is posting large losses with less than an hour left in the session. At 3:10 p.m. ET, the small-cap index was down 12.67 points, or 1.92%, to 647.44. The Dow Jones Industrial Average (INDU) had declined 140.19 points, or 1.18%, to 11,753.50.

Stocks small and large are falling as recession fears take hold on Wall Street. Friday’s disappointing jobs report, which showed that payrolls plunged 63,000 in February, led many observers to conclude that the U.S. economy is either in or will soon be in a recession.

A report by investment bank The Goldman Sachs Group, Inc. (NYSE: GS) released before the start of trading forecasts that the U.S. Federal Reserve will respond by lowering its target federal funds rate to 2% by late April.

An analyst with the New York-based company thinks the Fed will lower its target interest rate 0.5% during its next two regularly scheduled meetings, the first of which is on March 18. However, the report claims that an emergency rate cut as early as Monday can’t be ruled out.

The federal funds rate, the rate commercial banks charge each other for overnight loans, currently stands at 3%.

The Russell 2000 (NYSE: IWM) has added to its earlier losses after news of a rise in U.S. wholesale inventories in January.

At 12:06 p.m. ET, the small-cap index was down 9.09 points, or 1.38%, to 651.02. The Dow Jones Industrial Average (INDU) was missing 97.12 points, or 0.82%, to 11,796.57.

The stock of unsold goods held by wholesalers increased 0.8% in January, the U.S. Census Bureau reported after the start of trading. Economists were expecting wholesale inventories to rise 0.4% following a 1.1% jump in December.

However, wholesale sales increased 2.7%, the largest rise since March 2003. Sales fell 0.5% in December.

Wholesalers act as intermediaries between manufacturers or importers, and retailers, and a rise in inventories indicates that unsold goods are piling up.

Shares of steel companies are leading the list of sector losers. Among the decliners is small-cap steel maker Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP). Also trading in the red is China Precision Steel, Inc. (Nasdaq: CPSL).

Shares of Somanetics Corp. (Nasdaq: SMTS) are also in bearish territory on news before the opening that the Troy, Mich.-based maker of a noninvasive patient monitoring system was downgraded by an analyst.

Bucking the trend is Tongjitang Chinese Medicines Co. (NYSE: TCM). The China-based specialty pharmaceutical company has received a buyout offer from its chairman.

The Russell 2000 (NYSE: IWM) began the session in the red amid speculation of future interest rate cuts.

At 10:03 a.m. ET, the small-cap index was down 1.16 points, or 0.18%, to 658.95. The Dow Jones Industrial Average (INDU) had declined 2.85 points, or 0.02%, to 11,890.84.

The U.S. Federal Reserve will drop its target federal funds rate to 2% by late April, according to a report by investment bank The Goldman Sachs Group, Inc. (NYSE: GS) before the start of trading.

An analyst with the New York-based company thinks the Fed will lower its target interest rate 0.5% during its next two regularly scheduled meetings, the first of which is on March 18. However, the report claims that an emergency rate cut as early as Monday can’t be ruled out.

The federal funds rate, the rate commercial banks charge each other for overnight loans, currently stands at 3%.