Manufacturing boosts small caps
The Russell 2000 (NYSE:IWM) is posting a solid gain on news that a regional manufacturing index came in better than expected.
At 12:22 a.m. ET, the small-cap index was up 9.37 points, or 1.41%, to 673.50. The Dow Jones Industrial Average (INDU) had added 121.38 points, or 1.00%, to 12,221.04.
The Philadelphia Federal Reserve reported after the start of trading that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.
The numbers show continued weakness and represent the longest period of contraction in five years. The percentage of companies expecting to see growth over the next six months was almost the same as the percentage of those expecting a contraction.
With investors bullish, shares of footwear companies are leading the industry group winners.
Nelsonville, Ohio-based Rocky Brands Inc. (Nasdaq:RCKY), which makes shoes in the outdoor, work, duty and western styles, is seeing its stock rise 8%. Similarly, shares of athletic footwear maker K-Swiss Inc. (Nasdaq:KSWS) are also in the green.
Brown Shoe Company, Inc. (NYSE:BWS) and men’s footwear distributor Weyco Group Inc. (Nasdaq:WEYS) are also posting gains.
