Russell 2000 extends losses
The Russell 2000 (NYSE: IWM) and the other major U.S. indices remain deep in negative territory on economic worries.
At 11:45 a.m. ET, the small-cap index was down 10.62 points, or 1.50%, to 695.10. The Dow Jones Industrial Average (INDU) had retreated 192.86 points, or 1.53%, to 12,389.32.
Stocks small and large are posting significant declines on bearish economic news and a historic loss at insurer American International Group, Inc. (NYSE: AIG).
The National Association of Purchasing Managers-Chicago reported after the opening that its index of regional business conditions fell to a lower-than-expected level of 44.5 in February from 51.5 in January. A reading below 50 indicates a contraction.
Meanwhile, the University of Michigan said after the opening that its index of consumer confidence fell to a reading of 70.8 in February. That’s up from the preliminary estimate of 69.6 but still represents the worst result in over 15 years.
Also helping the bulls is news before the opening that American International Group the world’s largest insurance company, had net loss of $5.29 billion, or $2.08 per share, during the fourth-quarter.
Stocks are falling across the board, with shares of footwear makers among the biggest losers.
K-Swiss Inc. (Nasdaq: KSWS) is down, as is sports product distributor Heelys Inc. (Nasdaq: HLYS).
Elsewhere, shares of online auction site BIDZ.com, Inc. (Nasdaq: BIDZ) are sagging on news after the close on Thursday that the CEO has changed his compensation plan and the Culver City, Calif.-based company reported fourth-quarter earnings in line with expectations.
News after the close on Thursday of a 2% decline in fourth-quarter net revenue has lowered shares of Spanish-language media company Entravision Communications Corp. (NYSE: EVC).
