Russell 2000 closes with gain
The Russell 2000 (NYSE:IWM) moved up on news of a higher-than-expected rise in producer prices and solid earnings from major players. The small-cap index added 5.99 points, or 0.87%, to 692.06. The Dow Jones Industrial Average rose 60.41 points, or 0.49%, to 12,362.47.
On a year-to-date basis, the Russell 2000 has declined 9.66%, while the Dow is off 6.80% and the S&P 500 is missing 9.12%.
Small-cap stocks began the day in the green and spent the majority of the session above the flat line on news before the opening that producer prices rose a greater-than-expected 1.1% in March following a rise of 0.3% in February.
The numbers also show a jump in energy and food costs, indicating that inflation pressures remain. However, core producer prices, which exclude the costs of food and energy, rose a modest 0.2%.
“The good news is that core PPI remains tame, but how long can that last for?” global foreign exchange strategist Andrew Busch with financial services firm BMO Capital Markets wrote in a note today. “At some point, U.S. businesses will be forced to somehow pass through their higher costs to the consumer level.”
Contributing to the bullish pre-market sentiment was news from health-care products maker Johnson & Johnson (NYSE:JNJ), which reported that its first-quarter profit rose 40%.
Among the winners today was men’s clothing retailer Jos. A. Bank Clothiers, Inc. (Nasdaq:JOSB), which today announced that its same-store sales rose at least 3.8% during fiscal 2007.
“We were pleased with our results last year in a consumer economy that was very difficult and which is showing no signs of getting any better,” CEO Robert Wildrick said in a conference call.
Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:
• Exponent Inc. (Nasdaq:EXPO), up 19% to $37.02 on news of a rise in first-quarter profit.
• RehabCare Group, Inc. (NYSE:RHB), up 16% to $15.99.
• FX Energy Inc. (Nasdaq:FXEN), up 16% to $5.30.
• Sigma Designs, Inc. (Nasdaq:SIGM), down 25% to $15.67 despite news of a deal with Microsoft Inc. (Nasdaq:MSFT).
• Novatel Wireless, Inc. (Nasdaq:NVTL), down 23% to $7.76 on news an analyst lowered the stock’s price target to $14.50 per share from $24 per share.
• CoBiz Financial, Inc. (Nasdaq:COBZ), down 13% to $10.26 on news of an analyst downgrade.
Volume leaders:
• Novatel Wireless, Inc. (Nasdaq:NVTL) 12,497,200 shares traded.
• Sigma Designs, Inc. (Nasdaq:SIGM) 10,144,500 shares traded.
• USEC Inc. (NYSE:USU) 4,034,800 shares traded.
The day saw 48 small-cap stocks set 52-week lows, while 14 small caps established a 52-week high.
