Russell 2000 adds to gains
The Russell 2000 (NYSE:IWM) has added to its impressive gains on news of better-than-expected economic data and hopes the credit crunch is ending.
At 12:09 p.m. ET, the small-cap index had added 15.07 points, or 2.19%, to 703.04. The Dow Jones Industrial Average was up 284.08 points, or 2.32%, to 12,546.97.
Stocks small and large opened strong and have been rising on news that UBS AG (NYSE:UBS) and Deutsche Bank AG have suffered a combined total of nearly $23 billion in writedowns in the most recent quarter.
However, investors are taking that as a bullish sign because UBS will receive help from four other banks. That suggests the Swiss giant will get through the current rough patch, fueling speculation that the credit crunch is easing.
Meanwhile, the Institute for Supply Management reported after the opening that its manufacturing index increased to a reading of 48.6 in March from 48.3 in February. The numbers indicate a second consecutive monthly decline but came as a surprise to economists expecting the measure to drop further.
In other economic news, the U.S. Census Bureau reported after the start of trading that construction spending fell less than expected in February.
Companies offering communications services are currently the best performing industry group. Among the winners is small-cap Centennial Communications Corp. (Nasdaq:CYCL), which is a regional wireless and broadband telecommunications service provider.
Similarly, shares of Edinburg, Va.-based Shenandoah Telecommunications Co. (Nasdaq:SHEN) are also rising.
On the flip side, gold and silver companies are the worst performing industry group. Among losers are DRDGOLD Ltd. (Nasdaq:DROOY) and Tanzanian Royalty Exploration Co. (AMEX:TRE).
