Russell 2000 ends month with rise
The Russell 2000 (NYSE:IWM) ended March with a solid gain on news of a better-than-expected gauge of business activity and a plan to overhaul financial regulation. The small-cap index rose 4.79 points, or 0.70%, to 687.97. The Dow Jones Industrial Average added 46.49 points, or 0.38%, to 12,262.89.
On a year-to-date basis, the Russell 2000 is down 10.19%, while the Dow has shed 7.55% and the S&P 500 has declined 9.92%.
Small-cap stocks began the session mixed, trading with no clear direction as investors awaited economic and financial news.
The National Association of Purchasing Management-Chicago reported after the start of trading that its purchasing managers’ index rose to higher-than-expected level of 48.2 in March from 44.5 in February. The news eased concerns of a decline in business investment even though readings below 50 signify a contraction.
Also grabbing the headlines was a plan by the Bush administration for a major overhaul of the existing financial regulation. The proposal, outlined by U.S. Treasury Secretary Henry Paulson after the opening, would broaden the powers of the U.S. Federal Reserve and allow it to oversee financial services beyond banks.
The Russell 2000 settled into an upward trajectory at about 11 a.m. ET, rising to its highest level of the session about 1:40 p.m. ET, when it nearly touched a level of 694.
Despite the prevailing bullish mood, shares of small-cap Pacific Ethanol Inc. (Nasdaq:PEIX) ended the day in the red. The Sacramento, Calif.-based company reported after the close on Friday that its fourth-quarter loss widened to $14.7 million, or $0.40 per share, compared with $3.1 million, or $0.11 per share, a year earlier.
However, CEO Neil Koehler appeared optimistic.
“We are encouraged with ethanol market developments,” Koehler said. “With the high price of oil, limited and expensive opportunities to expand oil production and a robust renewable fuel standard, we do believe the domestic ethanol industry will continue a rapid expansion,” Koehler said in a conference call today.
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:
• iPCS Inc. (IPCS), up 36% to $23.35 on news of a favorable court decision.
• Ansoft Corp. (ANST), up 30% to $30.52 on news it will be bought for $832 million in cash by software maker Ansys Inc. (ANSS).
• Power Medical Interventions, Inc. (PMII), up 25% to $6.01.
• VCG Holding Corp. (VCGH), down 18% to $6.10 on news it needs more time to complete its fiscal 2007 financial statements.
• Infinity Pharmaceuticals, Inc. (INFI), down 14% to $5.95.
• ArcSight Inc. (ARST), down 14% to $6.91.
Volume leaders:
• FairPoint Communications, Inc. (FRP) 7,939,600 shares traded.
• Ansoft Corp. (ANST) 5,880,500 shares traded.
• EMCORE Corp. (EMKR) 3,813,200 shares traded.
The day saw 29 small-cap stocks set 52-week lows, while eight small caps established a 52-week high.
