Russell 2000 changes course
The Russell 2000 (NYSE: IWM) has swung into negative territory after posting modest gains in the morning. At 1:56 p.m. ET, the small-cap index was down 8.63 points, or 1.06%, to 802.22. The Dow Jones Industrial Average (INDU) had shed 94.29 points, or 0.69%, to 13,580.96.
Trading is volatile as investors appear unsure if the day’s economic news is bearish or bullish.
The bears point to the fact that orders for durable goods fell 1.7% in September, according to the U.S. Commerce Department before the start of trading. Economists were expecting a rise of 1.5% following a downwardly revised decline of 5.3% in August.
But the bulls saw a silver lining in the form of a 0.4% rise in orders for non-defense capital goods excluding aircraft, following an increase of 1.8% in August. That’s a sign that businesses are spending money on capital equipment despite the uncertain U.S. economic environment.
The bears won the first battle as stocks started sagging shortly after the opening.
The bulls returned to action when the U.S. Census Bureau announced at 10 a.m. ET that sales of new homes increased 4.8% to an annual pace of 770,000 in September, defying projections of a drop.
Stocks jumped and spent the rest of the morning in positive territory.
However, a more careful look at the report again emboldened the bears. The reading for September was 24% below the level a year earlier, while the numbers of August and July were revised downward.
Elsewhere, the price of oil has risen sharply, up $2.67 to $89.77, following news on Wednesday of a decline in weekly U.S. oil inventories.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Mercury Computer Systems Inc. (MRCY), up 24% on news of an improved first quarter.
• Transcend Services Inc. (TRCR), up 22% on news of a rise in third-quarter profit.
• Abaxis Inc. (ABAX), up 18% on news of strong second-quarter results.
Biggest percentage losers:
• Sturm, Ruger & Company Inc. (RGR), down 31% on news of a third-quarter loss.
• Barrett Business Services Inc. (BBSI), down 20%.
• W.P. Stewart & Co., Ltd. (WPL), down 16%.
