Russell 2000 jumps on retail sales
The Russell 2000 (NYSE: IWM) is rising on news of surprisingly strong January U.S. retail sales.
At 10:10 a.m. ET, the small-cap index had gained 8.43 points, or 1.19%, to 713.91. The Dow Jones Industrial Average (INDU) had added 97.22 points, or 0.79%, to 12,470.63.
Stocks small and large opened with a jump on news that retail sales unexpectedly rose 0.3% in January. That beats economists’ forecast of a decline of 0.2% and is an improvement over December’s 0.4% drop.
Sales excluding autos also increased 0.3%, more than the projected 0.2%. Sales excluding gasoline rose just 0.1%.
The numbers are good news for those worried that there is a pullback in consumption that will send the economy into recession. Consumer spending is about 70% of U.S. gross domestic product.
However, furniture sales fell, as did sales of building materials. Department store sales also declined.
Small-cap stocks are rising, helped by news that predictive analytics technology maker SPSS Inc. (Nasdaq: SPSS) saw its fourth-quarter profit increase five-fold to $10 million, or $0.50 per share, compared with $2 million, or $0.10 per share, a year earlier.
Shares of Ascent Solar Technologies, Inc. (Nasdaq: ASTI) are also shining following news that the Littleton, Colo.-based maker of solar cells is relocating to Thornton and is planning to increase its manufacturing capacity.
Meanwhile, online closeout retailer Overstock.com, Inc. (Nasdaq: OSTK) is flat on news that a court has allowed a case against a hedge fund making defamatory claims against the Salt Lake City-based company to go forward.
