Russell 2000 enjoying a rally
The Russell 2000 (NYSE:IWM) is posting big gains as a rally takes hold on Wall Street. At 2:42 p.m. ET, the small-cap index had climbed 22.68 points, or 3.33%, to 704.10. The Dow Jones Industrial Average (INDU) was up 235.43 points, or 1.90%, to 12,596.75.
The bulls are running the show as investors as stocks small and large rally on news that investment bank JPMorgan Chase & Co. (NYSE:JPM) has raised its offer for Bear Stearns (NYSE:BSC) to $10 a share from the original bid of $2 a share. JPMorgan has also agreed to guarantee Bear Stearns’ borrowings from the Federal Reserve Bank of New York.
Bear Stearns collapsed under the weight of investments made on securities backed by subprime mortgages.
Speaking of the housing sector, sales of existing homes rose 2.9% in February, the National Association of Realtors reported after the start of trading. Investors took that as a bullish sign because economists were expecting a decline.
Despite the prevailing sentiment, shares of retail companies in the catalog and mail order business are bucking the trend and are currently the worst performing industry group.
The list of losers includes small-cap integrated direct marketing company ValueVision Media, Inc. (Nasdaq:VVTV). Shares of Torrance, Calif.-based direct marketer PC Mall Inc. (Nasdaq:MALL) are also falling.
Meanwhile, online closeout retailer Overstock.com Inc. (Nasdaq:OSTK) is seeing its stock move higher.
