Russell 2000 extends slump
The Russell 2000 (NYSE:IWM) and the Dow have fallen deeper into negative territory.
At 12:14 p.m. ET, the small-cap index was down 8.69 points, or 1.22%, to 703.23. The Dow Jones Industrial Average had lost 68.31 points, or 0.54%, to 12,508.13.
Stocks have extended their earlier losses as the price of oil is nearing an all-time high. The Energy Information Administration reported after the opening that inventories of crude oil unexpectedly fell for the week ended April 4, causing the price of oil to approach its March record high of $111.80 a barrel.
Equities began the day in the green on news before the opening that Citigroup Inc. (NYSE:C) is near a deal to sell approximately $12 billion of leveraged loans and bonds to a group of private equity firms, according to news reports.
But the bears took over trading within minutes as investors worried that corporate earnings will suffer due to the economic slowdown. The catalyst was bellwether United Parcel Service, Inc. (NYSE:UPS), which lowered its first-quarter profit forecast after Tuesday’s close.
Amidst the sell-off, airlines are currently the worst performing industry group. Among the losers is small-cap Mesa Air Group, Inc. (Nasdaq:MESA). The Phoenix-based company announced after the close on Tuesday that it wants to issue as much as $37.8 million in common stock to pay off its debt.
Meanwhile, shares of Hawaiian Holdings, Inc. (AMEX:HA), which owns all the common stock of Hawaiian Airlines, are also descending.
On the flip side, gold and silver companies are currently the best performing industry group. Among the winners is Canadian mining company PolyMet Mining Corp. (AMEX:PLM).
