Russell 2000 closes lower
The Russell 2000 (NYSE:IWM) snapped a five-day winning streak as the morning’s bullish sentiment evaporated in the final hour of trading. The small-cap index fell 1.05 points, or 0.15%, to 712.68. The Dow Jones Industrial Average added 3.01 points, or 0.02%, to 12,612.43.
On a year-to-date basis, the Russell 2000 has shed 6.96%, while the Dow has declined 4.92% and the S&P 500 is off 6.53%.
Investors turned their eyes to the corporate sector with no major economic releases scheduled for today. Futures were pointing up and the small-cap index opened in the green on news before the opening that Washington Mutual Inc. (NYSE:WM) is near a deal to receive a $5 billion injection from investors led by private equity firm TPG Inc.
Shares of the Seattle-based savings and loan company, which needs extra cash to deal with liquidity issues stemming from the subprime mortgage meltdown, jumped almost 30% today.
The Russell 2000 reached its highest level of the session shortly before 1 p.m. ET, when the index briefly rose above a level of 720 before beginning a slow decline. Small-cap stocks slipped into the red at about 3 p.m. ET, and couldn’t recover.
Rental and leasing services companies were the best-performing industry group. Among the winners was small-cap Mitcham Industries, Inc. (Nasdaq:MIND), which leases seismic equipment to the oil and gas industry.
Similarly, shares of Baton Rouge, La.-based H&E Equipment Services, Inc. (Nasdaq:HEES), which leases and sells heavy construction and industrial equipment, also closed higher.
On the flip side, apparel retail companies were the worst-performing industry group. The list of losers includes The Children’s Place Retail Stores, Inc. (Nasdaq:PLCE).
