Russell 2000 in the red
The Russell 2000 (NYSE:IWM) is deep into negative territory as investors parse through the latest earnings and economic news. At 1:21 p.m. ET, the small-cap index had let go 7.18 points, or 1.01%, to 706.21. The Dow Jones Industrial Average was down 17.26 points, or 0.14%, to 12,602.01.
Small-cap stocks fell out of the gate and have been moving lower as major corporations announced disappointing quarterly earnings.
Merrill Lynch & Co., Inc. (NYSE:MER) is partially to blame for the bearish mood on news before the opening that it swung to a steep first-quarter net loss and will have to cut jobs due to more writedowns associated with the subprime mortgage mess.
Shares of Pfizer Inc. (NYSE:PFE) are also falling on news before the start of trading that first-quarter profit declined 18%.
Meanwhile, shares of small-cap Spectrum Pharmaceuticals, Inc. (Nasdaq:SPPI) are posting a healthy gain on news that one of its drugs has the potential to treat lung cancer. The Irvine, Calif.-based company plans on beginning clinical trials.
In economic news, the Philadelphia Federal Reserve announced after the opening that its index of regional manufacturing activity fell more than expected in April, its fifth consecutive decline and another reminder that the economy is in the doldrums.
Amidst the sell-off on Wall Street, trucking companies are currently the worst-performing industry group. Among the losers is Old Dominion Freight Line, Inc. (Nasdaq:ODFL).
The Thomasville, N.C.-based company was downgraded to “neutral” from “outperform” due to concerns about demand and pricing pressures within the industry, according to news of a research note published before the opening by financial services firm Robert W. Baird & Co.
Elsewhere in the same space, shares of Saia Inc. (Nasdaq:SAIA) are also sagging, as are shares of Dallas-based Frozen Food Express Industries, Inc. (Nasdaq:FFEX), which transports temperature-controlled products and perishable goods.
