Russell 2000 continues in the red
The Russell 2000 (NYSE:IWM) is in negative territory as investors react to news of a jump in weekly jobless claims.
At 12:19 p.m. ET, the small-cap index had let go 1.65 points, or 0.23%, to 710.62. The Dow Jones Industrial Average was off 7.32 points, or 0.06%, to 12,598.51.
The bears have been running the show since the start of trading on news before the opening that jobless claims for the week ended March 29 increased 38,000 to 407,000, according to the U.S. Labor Department. Economists were expecting a smaller increase from the preceding week’s upwardly revised figure of 369,000.
Small-cap stocks stumbled but recovered and almost broke into positive territory at about 10 a.m. ET on news that the U.S. service sector contracted less than expected in March.
The Institute for Supply Management reported after the opening that its non-manufacturing index came in at 49.6, a hair above the 49.3 reported in February. Economists were expecting to see a decline. Readings below 50 indicate a contraction.
Companies making furniture and fixtures are currently the worst performing industry group. Among the losers is small-cap office furniture maker Knoll Inc. (NYSE:KNL).
Similarly, shares of Jasper, Ind.-based Kimball International Inc. (Nasdaq:KBALB) are also down.
On the flip side, coal companies are currently the best performing industry group. Among those posting gains is Evergreen Energy Inc. (NYSE:EEE), which works to transform coal into more energy efficient fuel. Meanwhile, shares of James River Coal Co. (Nasdaq:JRCC) are up 10%.
