Jobs data lifts small caps
The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting gains on news of a better-than-expected jobs report.
At 10:47 a.m. ET, the small-cap index had added 0.97 points, or 0.13%, to 754.52. The Dow Jones Industrial Average (INDU) was up 28.61 points, or 0.22%, to 13,072.57.
Stocks both small and large are in positive territory following the release of a report that showed higher-than-expected U.S. private sector job growth.
Nonfarm private employment increased 40,000 in December, according to Automatic Data Processing, Inc. (NYSE: ADP). The provider of business outsourcing solutions said that small- and medium-sized businesses more than accounted for the rise, adding 75,000 jobs. Meanwhile, larger companies cut 35,000 jobs.
ADP said that the gain was greater than forecasted, but warned that the numbers show a slowing of nonfarm private employment. The three-month period from September through November averaged 118,000 new jobs.
The data is consistent with a slowing economy.
Residential construction and financial services, the two sectors hit hardest by recent problems in mortgage markets and the slump in the U.S. housing sector, continued to shed jobs.
In other economics news, the U.S. Census Bureau reported that new orders for manufactured goods jumped 1.5% in November to $430.3 billion. That beats economists’ projections and is above October’s gain of 0.7%.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Akeena Solar, Inc. (AKNS), up 26%.
• KongZhong Corp. (KONG), up 13% on news it has signed a strategic alliance agreement with China Sports Industry Group Co. to develop sports-related content for mobile phones.
• China Technology Development Group Corp. (CTDC), up 11% on news it has opened a new production line in China.
Biggest percentage losers:
• WGNB Corp. (WGNB), down 10% on news that it expects weak results in the fourth quarter and full year of 2007.
• Overstock.com, Inc. (OSTK) down 6% on news its co-founder has resigned.
• BabyUniverse, Inc. (KIDS), down 7%.
