Russell 2000 adds to gains
The Russell 2000 (NYSE: IWM) has picked up speed and is outpacing the other major U.S. indices this afternoon. At 2:06 p.m. ET, the small-cap index had advanced 1.86 points, or 0.24%, to 774.24. The Dow Jones Industrial Average (INDU) was up 32.44 points, or 0.25%, to 13,075.18.
Investors are modestly bullish following news that banking giants Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC) and JPMorgan Chase & Co. (NYSE: JPM) have agreed to create a structured fund of at least $75 billion to help revive the short-term debt market, according to a report by The New York Times after the start of trading. The fund could be operational within a couple of weeks.
That news helped lift financial shares and send big- and small-cap stocks on an upward trajectory.
Otherwise, the day began quietly, as the bond market is closed and no major economic releases are scheduled as Americans honor Veterans Day.
International Business Machines Corp. (NYSE: IBM) made the headlines on news that it will buy business intelligence software maker Cognos Inc. (TSE: CSN) for $5 billion, while shares of online broker E*Trade Financial Corp. (Nasdaq: ETFC) are in dire straits on news of an analyst downgrade and the possibility of bankruptcy.
In commodities news, the price of oil has dropped $1.92 to $94.40 on news that Saudi Arabia, the world’s largest producer, said that the Organization of the Petroleum Exporting Countries would consider raising exports. The oil cartel controls about 40% of the world’s oil production.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Globecomm Systems Inc. (GCOM), up 26% on news of a contract with the U.S. Army.
• RAM Holdings Ltd. (RAMR), up 23%. A company representative could not be reached for comment.
• Imperial Capital Bancorp Inc. (IMP), up 21%. A company representative could not be reached for comment.
Biggest percentage losers:
• Basin Water Inc. (BWTR), down 18%. The company declined to comment.
• Virco Manufacturing Corp. (VIRC), down 17%. A company representative could not be reached for comment.
• Centerplate Inc. (CVP), down 14%. The company declined to comment.
