Russell 2000 goes down
The Russell 2000 (NYSE: IWM) fell today, losing grip in the last minutes of trading and surrendering its earlier gains. The small-cap index dropped 5.29 points, or 0.68%, to 767.09. The Dow Jones Industrial Average (INDU) shed 55.19 points, or 0.42%, to 12,987.55.
On a year-to-date basis, the Russell 2000 has lost 2.58%, while the Dow has advanced 4.11% and the S&P 500 has added 1.59%.
A quiet session lacking any major economic releases due to Veterans Day began with news that International Business Machines Corp. (NYSE: IBM) will buy Cognos Inc. (TSE: CSN), a Canadian maker of business intelligence software, for $5 billion.
The offer was expected, as Armonk, N.Y.-based IBM’s rivals had previously also made purchases of intelligence software companies.
E*Trade Financial Corp. (Nasdaq: ETFC) also made headlines after the provider of online financial services was downgraded by Citigroup Inc. (NYSE: C), which also gave it a 15 percent chance of going bankrupt.
Small-caps opened with a drop but regained their footing after 10 a.m. ET.
Shares continued to rise until they peaked midway through the session, helped by news that banking giants Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC) and JPMorgan Chase & Co. (NYSE: JPM) have agreed to create a structured fund of at least $75 billion to help revive the short-term debt market, according to a report by The New York Times. The fund could be operational within a couple of weeks.
But stocks lost steam and slipped into negative territory minutes before the close, the Russell 2000’s second consecutive decline.
Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Globecomm Systems Inc. (GCOM), up 25% to $15.31 on news of a contract with the U.S. Army.
• RAM Holdings Ltd. (RAMR), up 19% to $7.13. A company representative could not be reached for comment.
• Imperial Capital Bancorp Inc. (IMP), up 18% to $22.01. A company representative could not be reached for comment.
Biggest percentage losers:
• China Finance Online Co. Ltd. (JRJC), down 23% to $24.87. A company representative could not be reached for comment.
• TBS International Ltd. (TBSI), down 21% to $42.22. A company representative could not be reached for comment.
• Quebecor World Inc. (IQW), down 20% to $5.21 on news an analyst reduced its 2008 and 2009 pretax income estimates.
Volume leaders:
• Restoration Hardware Inc. (RSTO) 3,428,300 shares traded.
• Assisted Living Concepts Inc. (ALC) 3,395,900 shares traded on news of a rise in third-quarter earnings.
• ViroPharma Inc. (VPHM) 3,319,500 shares traded on news its drug candidate was granted orphan drug status by European regulators.
The day saw 74 small-cap stocks set 52-week lows, while 10 small caps established 52-week highs.
