Tag - Orit

The Russell 2000 stumbled late Wednesday, finishing down 17.81, or 2.61%, at 664.13, unable to sustain the updraft off Tuesday’s largest one-day gain of the year. In today’s action, support is at 660, then at 654, and critical support is at 650. With the U.S. markets closed Friday for the Good Friday holiday, a weekly close above 650 will be critical for the chart structure, and to keep investors uplifted by the recovery off the lows.

The market could see mild volatility into the opening Thursday. The bigger volatility risk comes at 10:00 a.m. ET with the release of Leading Indicators and the Philly Fed Survey.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices declined in the final minutes of trading as investors got nervous ahead Thursday’s inflation data. The small-cap index lost 6.72 points, or 0.85%, to 782.43. The Dow Jones Industrial Average (INDU) fell 83.16 points, or 0.62%, to 13,223.93.

On a year-to-date basis, the Russell 2000 has retreated 0.63%, while the Dow has risen 6.01% and the S&P 500 has added 3.81%.

Stocks began the day little changed on news that U.S. retail sales growth slowed to 0.2% in October, following an upwardly revised increase of 0.7% in September. The result was in line with economists’ projections but indicates that consumers have become a little more reluctant to spend money due to declining home values and higher gasoline prices.

Most economists expect that fourth-quarter economic growth will shift into lower gear. Consumption is about 70% of gross domestic product.

News on the inflation front was rosier. The U.S. Labor Department reported that the producer price index added a miniscule 0.1% in October, after a jump of 1.1% in September. The core index, which excludes food and energy, stayed put after rising 0.1% the previous month.

Economists were expecting both measurements to rise 0.2%. Producer prices measure the average changes in prices received by domestic producers for their output.

Small-cap stocks moved up out of the gate but then moderated and generally stayed just below the closing level today, while the Dow was trending higher. But the bulls lost their footing within minutes of the closing, when investors apparently adopted a cautious posture ahead of Thursday’s inflation data.

The Labor Department is expected to report that the consumer price index for October increased 0.3%, the same as in October. A higher-than-expected jump in prices will most likely rule out the U.S. Federal Reserve cutting its target interest rate during the remainder of 2007.

The Russell 2000 (NYSE: IWM) is trading choppy but hovering close to the flat line with two hours left in the session. At 1:59 p.m. ET, the small-cap index had lost 2.15 points, or 0.27%, to 787. The Dow Jones Industrial Average (INDU) was up 4.87 points, or 0.04%, to 13,302.22.

Small-cap stocks began the day in positive territory on news that retail sales growth in October slowed but inflation remained in check.

The U.S. Commerce Department reported before the start of trading that U.S. retail sales growth slowed to 0.2% in October, following an upwardly revised increase of 0.7% in September. The result was in line with economists’ projections and a sign that American consumers have become a little more reluctant to spend money.

Meanwhile, the U.S. producer price index added a miniscule 0.1% in October, according to the Labor Department. Producer prices rose 1.1% in September. The core index, which excludes food and energy, stayed put after rising 0.1% in September.

Economists were expecting both measurements to rise 0.2%.

The Russell 2000 (NYSE: IWM) is flat on news of a slowdown in retail sales for October and despite a lower-than-expected increase in producer prices.

At 10:15 a.m. ET, the small-cap index was up 0.49 points, or 0.06%, to 789.64. The Dow Jones Industrial Average (INDU) was up 195.95 points, or 0.01%, to 13,309.04.

Growth in U.S. retail sales slowed to 0.2% in October, the Commerce Department reported before the start of trading. That’s in line with economists’ forecasts but below the upwardly revised increase of 0.7% in September.

The numbers indicate that consumers have become a little more reluctant to spend money due to declining home values and higher gasoline prices. As a result, economic growth will most likely moderate in the fourth quarter of 2007.

Consumption is about 70% of gross domestic product.

Turning to inflation, the U.S. producer price index, which measures the average changes in prices received by domestic producers for their output, increased 0.1% in October. The Labor Department also reported that the core index, which excludes food and energy, stayed put after rising 0.1% in September.

Economists were expecting both measurements to rise 0.2%. The data tells us that inflation remained in check in October.

Overseas, London’s FTSE 100 index added 0.4%, while Tokyo’s Nikkei 225 rose 2.5%.

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

Biggest percentage gainers:

• Greater Community Bancorp. (GFLS) up 37% on news it will be bought by Oritani Financial Corp. (ORIT) for $187 million.
• Canadian Solar Inc. (CSIQ), up 21% on news it swung to a third-quarter profit.
• 3SBio Inc. (SSRX), up 16% on news of a rise in third-quarter earnings.

Biggest percentage losers:

• Basin Water Inc. (BWTR), down 18% on news of a third-quarter loss.
• Oritani Financial Corp. (ORIT), down 15% on news it will buy Greater Community Bancorp (GFLS) for $187 million.
• GateHouse Media Inc. (GHS) down 13% on news of a third-quarter loss.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will likely open in the green on news of a rise in retail sales.

Retail sales in the United States rose 0.2% in October, the Commerce Department reported this morning. That’s in line with economists’ forecasts but below the upwardly revised increase of 0.7% in September.

However, the numbers indicate that retail sales growth has slowed, a sign that consumers have become a little more reluctant to spend money. That indicates that U.S. economic growth will likely moderate in the fourth quarter of 2007.

Consumption is about 70% of gross domestic product.

Retail sales excluding auto and parts rose 0.2% in October, meeting economists’ expectations and matching September’s increase.

On Tuesday, Wal-Mart Stores Inc. (NYSE: WMT) sparked a rally when it reported higher-than-expected third-quarter earnings due to discounts that started two weeks earlier than last year.

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:

• Canadian Solar Inc. (CSIQ), up 28% on news it swung to a third-quarter profit.
• Synovis Life Technologies, Inc. (SYNO), up 19%.
• 3SBio Inc. (SSRX), up 17% on news of a rise in third-quarter earnings.

Biggest percentage losers:

• Northstar Neuroscience Inc. (NSTR), down 10% on news of a slowdown in the regulatory approval process of one of its treatments.
• Oritani Financial Corp. (ORIT) down 6% on news it will buy Greater Community Bancorp (CBON) for $187 million.
• China Techfaith Wireless Communication Technology Ltd. (CNTF) down 5%.