Economy lifts Russell 2000
The Russell 2000 (NYSE: IWM) and the Dow are higher following news of generally bullish economic reports.
At 11:56 a.m. ET, the small-cap index had added 4.07 points, or 0.60%, to 685.05. The Dow Jones Industrial Average (INDU) was up 82.96 points, or 0.68%, to 12,296.76.
Small-cap stocks are in the green following news that fourth-quarter productivity was revised up while the U.S. services sector contracted less than expected in February.
The U.S. Commerce Department reported before the start of trading that business productivity grew at an annualized rate of 1.9% in the fourth-quarter of 2007, above the initial estimate of 1.8%. Economists were not expecting an upward revision.
Futures were pointing higher and stocks opened in the green. At 10 a.m. ET, the Institute of Supply Management gave stocks a boost when it reported that its index of non-manufacturing activity increased to a reading of 49.3% in February from 44.6% in January.
That’s the second consecutive monthly decline but a better reading than the one projected by economists. The services sector comprises about 80% of U.S. gross domestic product.
With the mood on Wall Street bullish, one of the biggest gainers is Packeteer Inc. (Nasdaq: PKTR). The Cupertino, Calif.-based wide area network provider is seeing its stock price jump about 30% on news before the start of trading that it has received a bid from long-term shareholder Elliott Associates L.P. to buy the company for $5.50 per share.
Similarly, shares of Canadian Solar Inc. (Nasdaq: CSIQ) are shining on news before the opening that the maker of solar cells swung to a fourth-quarter profit that was hotter than the one projected by analysts.
Elsewhere, CAI International Inc. (NYSE: CAP), which leases freight containers, reported after the close on Tuesday that its fourth-quarter earnings increased nearly 17%. Shares of the San Francisco-based company are up about 10%.
