Futures up, Russell 2000 probably down
The Russell 2000 (NYSE: IWM) futures are slightly higher but the small-cap index will mostly likely be weighed down.
Housing starts surprisingly increased 3% in October, but the slump in the U.S. housing sector looks to continue.
The Census Bureau reported this morning that builders broke ground on 1.229 million homes at an annual rate, above the 1.193 million figure reported in September. That’s bullish news, surprising economists looking for a modest drop.
However, buildings permits, a sign of future construction, fell 6.6% to an annual rate of 1.178 million. That’s the lowest level in more than a decade and a sign that the housing woes will continue.
In other news, investment bank Goldman Sachs Group, Inc. (NYSE: GS) warned in a report that U.S. housing prices are likely to continue falling, dragging down the economy and increasing write-downs on securities based on residential mortgages
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:
• Restoration Hardware Inc. (RSTO), up 15% on news Sears Holdings Corp. (SHLD) has bought a stake in the company.
• China Automotive Systems, Inc. (CAAS), up 10%.
• Marchex Inc. (MCHX), up 5%.
Biggest percentage losers:
• MTC Technologies Inc. (MTCT), down 5%.
• Callidus Software Inc. (CALD) down 3% on news the CEO was hired by Microsoft Corp. (MSFT).
• NGAS Resources, Inc. (NGAS) down 3% on news that an offering of its 4.2 million common shares to certain investors has been priced at $6 a share.
