Russell 2000 flat as oil hits $100
The Russell 2000 (NYSE: IWM) survived a late-session scare to post a small gain on news of a profit rise at Wal-Mart. The small-cap index added 0.82 points, or 0.12%, to 702.34. The Dow Jones Industrial Average (INDU) fell 10.99 points, or 0.09%, to 12,337.22.
On a year-to-date basis, the Russell 2000 has declined 8.31%, while the Dow is down 6.99% and the S&P 500 has decreased 8.14%.
Trading got off to a bullish start today following news that Wal-Mart Stores, Inc. (NYSE: WMT) posted a 4% rise in net income for the fourth quarter ended Dec. 31, 2007.
The result was in line with analysts’ expectations and was largely attributed to strong overseas sales. However, the Bentonville, Ark.-based company warned that it could miss analysts’ expectations during the current quarter and forecasted U.S. same-store sales to be flat or rise no more than 2%.
The small-cap index roared out of the gate, soaring more than 1% to a level beyond 710 points. Small-cap stocks held on to gains of different magnitudes until they abruptly fell into negative territory at about 2:40 p.m. ET.
The reason: the price of oil rose to above $100 a barrel due to news of a refinery fire in Texas over the weekend and concerns about exports from producing countries Venezuela and Nigeria.
Worries that the Organization of the Petroleum Exporting Countries, which controls about 40% of global oil production, will keep production steady when it next meets in April also contributed to the rise in the price of oil.
The Russell 2000 languished in the red until minutes before the close, when the bulls returned to give it a boost.
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:
• North American Palladium Ltd. (PAL), up 19% to $8.05 on news of that the price of palladium has increased.
• BluePhoenix Solutions Ltd. (BPHX), up 19% to $10.98 on news it has won two contracts valued at about $3 million.
• Martha Stewart Living Omnimedia, Inc. (MSO), up 17% to $7.19 on news it has decided to buy the rights to TV chef Emeril Lagasse.
• Virtusa Corp. (VRTU), down 13% to $10.79.
• TierOne Corp. (TONE), down 13% to $15.20 despite its assurances that them merger with CapitalSource Inc. will go ahead as planned. There has been speculation that the deal won’t happen.
• TechTarget Inc. (TTGT), down 12% to $11.76.
• North American Palladium Ltd. (PAL) 8,632,500 shares traded.
• SiRF Technology Holdings, Inc. (SIRF) 4,733,900 shares traded.
• Palm, Inc. (PALM) 3,176,300 shares traded.
The day saw 45 small-cap stocks set 52-week lows, while nine small caps established a 52-week high.
