Russell 2000 extends losses
The Russell 2000 (NYSE: IWM) and the other major U.S. indices have extended their losses on news of sales declines at U.S. carmakers. At 3:34 p.m. ET, the small-cap index was missing 4.95 points, or 0.72%, to 681.23. The Dow Jones Industrial Average (INDU) had let go 32.48 points, or 0.26%, to 12,233.91.
Stocks extended their slide following news after the start of the trading that General Motors Corp. (NYSE: GM) saw its sales dropped 13% in February, while rival Ford Motor Co. (NYSE: F) reported a 6.6% decline.
The numbers show a shift away from large gas-guzzling automobiles and toward smaller and more fuel efficient cars.
Before that, small-cap stocks were also lower but trading closer to the flat line following news of government reports indicating declines in January construction spending and February factory activity.
Shares of Irwin Financial Corp. (NYSE: IFC) are down on news before the start of trading that the Columbus, Ind.-based financial services company announced before Monday’s opening that it plans to suspend quarterly dividends.
A sector by sector breakdown of trading shows that shares of companies providing construction services are among the worst performers.
Red bank, N.J.-based single-family home builder Hovnanian Enterprises, Inc. (NYSE: HOV) has seen its stock price fall. Stratus Properties, Inc. (Nasdaq: STRS), which manages and sells commercial and residential properties in the Austin, Texas area, is also in the red.
Shares of Layne Christensen Co. (Nasdaq: LAYN), which provides drilling and construction services, have also fallen.
