Russell 2000 futures sagging
The Russell 2000 (NYSE: IWM) futures have retreated and the small-cap index will likely open in negative territory.
Investors appear ready to pull back slightly after the major U.S. indices posted major gains on Tuesday. That’s despite news this morning that Morgan Stanley (NYSE: MS) saw a decline in fiscal first-quarter net income but still beat expectations. Investment banks have come into focus following the emergency sale of Bear Stearns (NYSE: BSC).
The Russell 2000 took flight Tuesday, notching the largest one-day gain of the year as investors embraced yet another reduction in benchmark interest rates by the FOMC. The small-cap barometer shot 31.45, or 4.84%, to 681.93. It’s a familiar refrain, as the market has had a tendency to rally on FOMC day – only to falter in the after wash. It should be interesting to see if this rally can grow legs.
There are no noteworthy economic releases or Fed speakers on tap today, which should free up the market to focus on routine fundamentals and to sift through the impact of Tuesday’s surge to see if there is more gas in the tank. The market poked through a little resistance spot late Tuesday at 680, and that is now immediate support. Below there, look for support at 674, then at 667 and 660. Resistance is at 684.50, and 695.
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:
• Internet Initiative Japan Inc. (IIJI), up 7%.
• Allscripts Healthcare Solutions, Inc. (MDRX), up 6%.
• EMCORE Corp. (EMKR), up 5%.
Biggest percentage losers:
• SI International, Inc. (SINT), down 18% on news it lowered its first-quarter and full-year 2008 outlook.
• Internap Network Services Corp. (INAP), down 16% on news it has delayed the filing of its 2007 annual report.
• Quidel Corp. (QDEL), down 12%.
Kevin Pendley contributed to this report.
