Russell 2000 falls again
The Russell 2000 (NYSE: IWM) closed lower for the fifth consecutive session on news of more subprime fallout and tech sector woes. The small-cap index declined 3.24 points, or 0.47%, to 680.98. The Dow Jones Industrial Average (INDU) lost 45.10 points, or 0.37%, to 12,213.80.
On a year-to-date basis, the Russell 2000 is missing 11.10%, while the Dow is down 7.92% and the S&P 500 has retreated 9.64%.
The bears dominated trading and small-cap stocks spent the entire session in negative territory. With no major economic releases scheduled, investors focused on corporate news.
Citigroup Inc. (NYSE: C) reported before the opening that it may have to cut as many as 30,000 jobs over the next year and a half due to writedowns related to the subprime mortgage mess. Additionally, Citigroup might need to raise more capital to get over the credit crunch.
Contributing to the bearish sentiment was Santa Clara, Calif.-based chip maker Intel Corp. (Nasdaq: INTC), which announced after the close on Monday that it has lowered its first-quarter gross margin forecast to 54% from 56% earlier.
Small-cap stocks declined, with Jackson Hewitt Tax Service Inc. (NYSE: JTX) being one of the biggest losers. Before the opening the Parsippany, N.J.-based company posted third-quarter net income of $18.2 million, or $0.61 per share, a 34% decline from a year earlier.
“I am not a patient person, nor will I accept the growth that Jackson Hewitt has experienced over the past couple of years,” CEO Michael Yerington said in a conference call today.
The Russell 2000 reached its lowest point in the session at around 2:15 p.m. ET, slumping to a level of about 671 points. From there the index rallied, but it was too little too late.
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:
• Sun Hydraulics Corp. (SNHY), up 17% to $25.40 on news that fourth-quarter earnings beat analysts’ projections.
• ANADIGICS, Inc. (ANAD), up 13% to $6.73.
• Compellent Technologies, Inc. (CML), up 13% to $9.03.
• Tessera Technologies, Inc. (TSRA), down 39% to $14.07.
• Jackson Hewitt Tax Service Inc. (JTX), down 33% to $13.68 on news it expects a fiscal year tax return decline of about 5% to 6%.
• Obagi Medical Products, Inc. (OMPI), down 32% to $10.11 on news of disappointing fourth-quarter results.
• Tessera Technologies, Inc. (TSRA) 29,260,100 shares traded.
• USEC Inc. (USU) 8,515,700 shares traded.
• R.H. Donnelley Corp. (RHD) 7,704,100 shares traded.
The day saw 95 small-cap stocks set 52-week lows, while four small caps established a 52-week high.
