Russell 2000 ekes out a gain
The Russell 2000 (NYSE:IWM) managed a small rise on news of mixed economic reports. The small-cap index climbed 1.30 points, or 0.18%, to 713.57, its fourth consecutive rise. The Dow Jones Industrial Average added 20.20 points, or 0.16%, to 12,626.03.
On a year-to-date basis, the Russell 2000 has shed 6.85%, while the Dow is down 4.82% and the S&P 500 has retreated 6.75%.
Small-cap stocks spent the morning in negative territory on news before the opening that jobless claims for the week ended March 29 unexpectedly increased 38,000 to 407,000, according to the U.S. Labor Department. That’s the highest level in more than two years and a sign that economic growth has stalled.
The small-cap index recovered and almost touched the flat line at about 10 a.m. ET on news that the U.S. service sector contracted less than expected in March.
But stocks quickly lost their footing again, falling to a session low of nearly 706 at 11 a.m. ET, before beginning a slow climb upward. The bullish sentiment, which carried the Russell 2000 into the green at about 12:40 p.m. ET, had no readily apparent cause.
Investors, though, were encouraged by news of U.S. Federal Reserve chairman Ben Bernanke’s Senate testimony that the Fed expects to recover most, if not all, of the $29 billion in loans it provided to prevent investment bank Bear Stearns (NYSE:BSC) from going bust.
Among the winners today was Matrix Service Co. (Nasdaq:MTRX). The Tulsa, Okla.-based construction company reported before the opening that third-quarter revenue increased 7% but fell short of analysts’ projections.
“We are starting to see key clients commit to substantial turnaround work,” CEO Mike Bradley said in a conference call. “We expect to see a strong finish to our fiscal year. We are focused on carrying through on our existing contracts and strengthening our underlying business.”
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:
• Isramco Inc. (NYSE:ISRL), up 61% to $49.92 on news it has acquired new oil and gas properties.
• USEC Inc. (NYSE:USU), up 28% to $5.26.
• Graham Corp. (AMEX:GHM), up 26% to $45.22 on news of an increase in orders for the fiscal year ended March 31.
• X-Rite Inc. (Nasdaq:XRIT), down 17% to $5.35.
• Network Equipment Technologies, Inc. (NYSE:NWK), down 13% to $5.76.
• Aceto Corp. (Nasdaq:ACET), down 9% to $6.91.
Volume leaders:
• USEC Inc. (NYSE:USU) 12,667,200 shares traded.
• FairPoint Communications, Inc. (NYSE:FRP) 6,696,800 shares traded.
• EMCORE Corp. (Nasdaq:EMKR) 4,845,600 shares traded.
The day saw 15 small-cap stocks set 52-week lows, while nine small caps established a 52-week high.
