Durable decline for small caps
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%.
With equities sagging, airline companies are the worst performing industry group. Shares of ExpressJet Holdings, Inc. (NYSE:XJT) have descended more than 20%, while Pinnacle Airlines Corp. (Nasdaq:PNCL) has seen its stock shed 1%.
On the flip side, coal companies are currently the best-performing industry group. Among the winners is small-cap National Coal Corp. (Nasdaq:NCOC), which sells bituminous steam coal from mines located in east Tennessee and southeastern Kentucky.
Similarly, shares of Denver-based Evergreen Energy Inc. (NYSE:EEE) are also rising.
