Russell 2000 Friday's biggest loser
The Russell 2000 (NYSE:IWM) declined more than the other major U.S. indices as investors digested news of the latest economic reports. The small-cap index fell 9.21 points, or 1.33%, to 683.18. The Dow Jones Industrial Average was off 86.06 points, or 0.70%, to 12,216.40.
On a year-to-date basis, the Russell 2000 is down 10.82%, while the Dow has shed 7.90% and the S&P 500 has retreated 10.43%.
Small-cap stocks spent the first half of the session seesawing on news before the opening that personal income rose 0.5% in February, beating expectations of a 0.3% increase, according to the U.S. Commerce Department.
The same report also showed that personal consumption increased a feeble 0.1%, in line with expectations but below January’s 0.4% climb. Consumption is about 70% of U.S. gross domestic product and must be strong in order for the economy to keep growing.
A key measure of core inflation climbed just 0.1%, putting 12-month inflation within the U.S. Federal Reserve’s target range. That makes it easier for the Fed to cut its target federal funds rate in order to stimulate the economy.
Meanwhile, the Reuters/University of Michigan survey released after the opening shows that U.S. consumer confidence tumbled to its lowest level since 1992, making a recession more likely.
The Russell 2000 bounced around until about 1 p.m. ET, when the index began sliding along a downward trajectory. Bucking the trend was Coleman Cable, Inc. (Nasdaq:CCIX).
The Waukegan, Ill.-based maker of electrical wire and cable products reported after Thursday’s close that its fourth-quarter net income was $0.24 per share, outpacing Wall Street’s projections of $0.16 per share.
“Based on stable market conditions and the benefit from the synergies of our acquisitions and our cost-saving initiatives, we would expect consistent performance in the second quarter of 2008,” CEO Gary Yetman said in a conference call.
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:
• BioMimetic Therapeutics, Inc. (BMTI), up 30% to $8.45 on news the company insists its products are safe despite news of concerns about a Johnson & Johnson (JNJ) product with the same ingredient.
• Fuel Systems Solutions Inc. (FSYS), up 19% to $12.86.
• Sonic Innovations, Inc. (SNCI), up 13% to $5.09.
• Oplink Communications, Inc. (OPLK), down 28% to $8.65 on news of an analyst downgrade.
• Maxwell Technologies, Inc. (MXWL), down 22% to $9.13.
• USANA Health Sciences, Inc. (USNA), down 21% to $21.34 on news of a lower first-quarter earnings estimate.
Volume leaders:
• Maguire Properties, Inc. (MPG) 12,829,600 shares traded.
• Solarfun Power Holdings Co., Ltd. (SOLF) 7,835,600 shares traded.
• BioMimetic Therapeutics, Inc. (BMTI) 4,938,500 shares traded.
The day saw 40 small-cap stocks set 52-week lows, while five small caps established a 52-week high.
