Russell 2000 gains momentum
The Russell 2000 (NYSE:IWM) is posting solid gains despite mounting fears of a recession. At 2:01 p.m. ET, the small-cap index had added 4.86 points, or 0.68%, to 718.43. The Dow Jones Industrial Average was up 44.61 points, or 0.35%, to 12,670.64.
Investors are in a bullish mood and the major U.S. indices have shaken their early losses and moved into the green despite news of a weak government jobs report.
The U.S. Labor Department reported before the opening that payrolls fell by 80,000 in March, the third consecutive month of declines. Economists were expecting to see a decline of 63,000.
Small-cap stocks stumbled out of the gate but surprisingly rose into positive territory shortly after 11 a.m. ET.
“Today started as if there wouldn’t be much reaction in the market place,” said Cem Hocaoglu, head of Quantitative Derivative Strategy at financial services firm Susquehanna Financial, in a phone interview. “It’s just expectations are more to the down side and that’s probably why you don’t see as much of a downward spike that you would otherwise see.”
Companies providing school services are currently the best-performing industry, followed by coal companies, and iron and steel makers.
Among the winners is West Chester, Pa.-based Nobel Learning Communities, Inc. (Nasdaq:NLCI), which has a network of nonsectarian private schools.
Similarly, shares of Lincoln Educational Services Corp. (Nasdaq:LINC) are also posting a small increase.
Elsewhere, Westmoreland Coal Co. (AMEX:WLB) is seeing its stock appreciate on news that operators at one of its coal mines want to extend the mine’s boundaries, allowing it to stay operational until about 2023.
Meanwhile, shares of Bridgeville, Pa.-based Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP), which makes specialty steel products, have moved higher.
Jennifer Schonberger contributed to this report.
