Russell 2000 declining
The Russell 2000 (NYSE:IWM) opened in the green but quickly lost steam despite news of mixed economic reports.
At 10:12 a.m. ET, the small-cap index had let go 5.07 points, or 0.72%, to 697.04. The Dow Jones Industrial Average (INDU) had advanced 1.63 points, or 0.01%, to 12,424.49.
Small-cap stocks opened higher but could not maintain their grip despite news before the start of trading that fourth-quarter gross domestic product increased as expected.
The economy rose at the previously announced annual pace of 0.6% in the last three months of 2007, according to the U.S. Commerce Department. The numbers match economists’ expectations.
Economic growth during the entire 2007 year was 2.2%, the slowest in five years.
Elsewhere, the U.S. Labor Department reported before the opening that jobless claims for the week ended March 22 fell 9,000.
Among the current small-cap losers is Aruba Networks, Inc. (Nasdaq:ARUN). Investors are apparently not impressed by news after the close on Wednesday that the Sunnyvale, Calif.-based wireless network provider has signed an agreement with IT giant Dell Inc. (Nasdaq:DELL) to offer customers more wireless network solutions.
On the flip side, shares of Conn’s Inc. (Nasdaq:CONN) have added 10% on news before the opening that the specialty retailer reported a better than expected fourth-quarter profit.
