Russell 2000 futures stumble
The Russell 2000 (NYSE: IWM) futures have declined and the small-cap index will open in negative territory.
Small-cap stocks are poised for a bearish opening on news that U.S. retail sales unexpectedly fell in February. The U.S. Commerce Department reported this morning that sales dropped 0.6%, defying economists’ forecasts for a small increase.
The Russell 2000 was unable to extend Tuesday’s big rally, and tumbled 6.50, or 0.97% to 667.31 on Wednesday. After the dramatic rise the previous day, a little bit of a “breather” session was not a surprise, but the market still needs to hold above 660 to help validate Tuesday’s huge rise. Look for chart resistance Thursday at 677.50, 683 and 688. Meanwhile, initial support should be seen at 660, then critical support comes in approaching 650.
The Business Inventories report at 10:00 a.m. will get a little more attention from traders. Still, the next big data risk comes with Friday’s CPI release.
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:
• GSI Commerce, Inc. (GSIC), up 6%.
• Gilat Satellite Networks Ltd. (GILT), up 4% on news it has signed an agreement to resell the products of Airspan Networks (AIRN).
• GeoEye Inc. (GEOY), up 3% on news of a rise in fourth-quarter earnings.
Biggest percentage losers:
• Sigma Designs, Inc. (SIGM), down 13% on news that fourth-quarter profit rose but missed expectations.
• Noven Pharmaceuticals, Inc. (NOVN), down 12%.
• Akeena Solar, Inc. (AKNS), down 11% on news of a wider fourth-quarter loss.
Kevin Pendley contributed to this report.
