Russell 2000 continues to fall
The Russell 2000 (NYSE: IWM) is in the red as investors respond to news of an unexpected contraction in the U.S. manufacturing sector. At 1:31 p.m. ET, the small-cap index had lost 13.87 points, or 1.81%, to 752.20. The Dow Jones Industrial Average (INDU) was down 242.40 points, or 1.83%, to 13,022.42.
The bears are dominating trading today on news that U.S. factory production unexpectedly shrank in December.
The Institute for Supply Management reported after the start of trading that its manufacturing index fell to 47.7 in December. Economists were expecting to see a reading of 50.5, down from 50.8 in November. A level above 50 indicates an expansion.
The decline tells us that tighter lending conditions and the ongoing problems in the U.S. housing sector have taken their toll. The data also renewed fears that the slowing U.S. economy could tip into recession.
Manufacturing comprises about 14% of gross domestic product.
Meanwhile, construction spending in November surprisingly increased 0.1% from the level in October, according to the U.S. Census Bureau. Economists were expecting to see a decline of 0.4%.
Oil was up $3.42 to $99.40 per barrel in afternoon trading due to violence in Nigeria, which is the world’s eighth largest exporter. Oil futures briefly touched $100 per barrel earlier today.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Akeena Solar, Inc. (AKNS), up 43% on news that its solar panel technology will be distributed in Europe.
• Mediacom Communications Corp. (MCCC), up 14% on news of an analyst upgrade.
• Force Protection, Inc. (FRPT), up 12% on news that it broke its monthly vehicle production record in December.
Biggest percentage losers:
• Retalix Ltd. (RTLX), down 14% on news that its net income for 2007 will be below the range announced earlier this year.
• Credit Acceptance Corp. (CACC) down 13%.
• COMSYS IT Partners, Inc. (CITP), down 12%.
