Russell 2000 futures down
The Russell 2000 (NYSE: IWM) futures are pointing south and the small-cap index will most likely fall on news of poor corporate earnings and downgrades.
Investment bank Goldman Sachs Group, Inc. (NYSE: GS) downgraded financial services giant Citigroup Inc. (NYSE: C) to “sell” from “neutral” on fears that it could suffer up to $15 billion in write-downs on collateralized debt obligations over the next two quarters.
The financial services sector has been hit hard by fallout from the meltdown in the subprime mortgage sector, which began after the U.S. housing prices started to stagnate in the second quarter of 2006.
The troubled housing sector is one reason why Lowe’s Companies, Inc. (NYSE: LOW), the nation’s second largest home improvement retailer, announced today that its third-quarter profit fell 10.2%. The Mooresville, N.C.-based company also lowered its fourth-quarter and full-year outlook.
No major economic releases are coming out today.
Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Helicos BioSciences Corp. (HLCS), up 10%.
• Micrel, Inc. (MCRL), up 9% on news it has signed a contract to supply commercial solar cells.
• BIDZ.com Inc. (BIDZ), up 6%.
Biggest percentage losers:
• Sify Technologies Ltd. (SIFY), down 15%.
• China Sunergy Co. Ltd. (CSUN) down 5% on news of a wider third-quarter loss.
• AuthenTec Inc. (AUTH) down 4%.
