Russell 2000 futures edge higher
The Russell 2000 (NYSE: IWM) futures have moved up and the small-cap index will likely open in the green.
The economy will come into focus today as policy makers head to the U.S. Congress. Treasury Secretary Henry Paulson is expected to tell lawmakers that the economy will slow but avoid recession.
Also appearing before a Senate committee on banking and housing at 10 a.m. ET is U.S. Federal Reserve chairman Ben Bernanke.
In economic news, the U.S. Labor Department reported that initial jobless claims for the weak ended Feb. 9 fell 9,000 to 348,000. However, the four-week moving average rose.
Small-cap stocks staged a solid rally Wednesday, with the Russell 2000 climbing 16.45, or 2.33% to 721.93. The rise lifted the index through the recent consolidation rectangle, and the breakout carries a target move to 735. The only convincing resistance along the way is at the recent double top at 731, although we might encounter mild selling interest today in the 726 zone. Look for support at 712 and 701.
Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:
• Spartan Motors, Inc. (SPAR), up 18% on news of a rise in fourth-quarter profit.
• FARO Technologies, Inc. (FARO), up 17% on news of a rise in fourth-quarter profit.
• Dendreon Corp. (DNDN), up 12%.
• NightHawk Radiology Holdings, Inc. (NHWK), down 15% on news of a lowered 2008 fiscal year outlook.
• Stamps.com Inc. (STMP), down 9% despite news that fourth-quarter adjusted earnings were above Wall Street’s expectations.
• The Knot, Inc. (KNOT), down 8% on news of a decline in fourth-quarter profit.
Kevin Pendley contributed to this report.
