Economic worries down Russell 2000
The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting declines as investors worry about the future of the economy.
At 10:46 a.m. ET, the small-cap index had lost 10.38 points, or 1.39%, to 738.95. The Dow Jones Industrial Average (INDU) had shed 145.91 points, or 1.12%, to 12,864.23.
Stocks began the day with a drop as investors reacted to news that the U.S. Federal Reserve lowered its growth outlook for the U.S. economy.
On Tuesday the Fed forecasted that growth will slow in 2008 and unemployment will creep up slightly as rising energy prices and the ongoing slump in the housing sector take their toll. Inflation is projected to remain in check.
In other economic news, the Labor Department reported before the opening that jobless claims for the week ended Nov. 17 decreased 11,000 to 330,000 from the previous week’s upwardly revised level of 341,000.
The four-week moving average, considered a more stable measure, fell 750 to 329,750 from 330,500 a week earlier.
The numbers tell us that labor markets are still fairly tight.
Meanwhile, the Mortgage Bankers Association reported that its weekly index of mortgage application volume fell 3.6% for the week ended Nov. 16. However, the four-week average has added 0.9%. The index tracks the volume of applications for mortgages to purchase new homes.
Overseas, Tokyo’s Nikkei index dropped 2.5%, while London’s FTSE 100 index fell 1.38%. The other major European exchanges also ended the day in negative territory.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• ValueVision Media, Inc. (VVTV), up 12% despite news of a wider third-quarter loss.
• Numerex Corp. (NMRX), up 6% on news of a third-quarter net loss.
• Par Pharmaceutical Companies, Inc. (PRX), up 3% on news of an increase in fiscal first-quarter net income
Biggest percentage losers:
• Solarfun Power Holdings Co., Ltd. (SOLF) down 14%. A company representative could not be reached for comment.
• China Finance Online Co. Ltd. (JRJC), down 19% despite news of a rise in quarterly profit.
• CNinsure Inc. (CISG) down 8%. A company representative could not be reached for comment.
