Russell 2000 looks up
The Russell 2000 (NYSE:IWM) jumped as investors reacted to news of a tech sector upgrade and a bullish earnings forecast from Wal-Mart Stores, Inc. (NYSE:WMT). The small-cap index rose 9.04 points, or 1.29%, to 707.42, snapping a three-day losing streak. The Dow Jones Industrial Average added 54.72 points, or 0.44%, to 12,581.98.
On a year-to-date basis, the Russell 2000 has let go 7.65%, while the Dow has declined 5.15% and the S&P 500 is missing 7.34%.
Small-cap stocks began the session with a brief dip into the red but quickly recovered as investors digested news before the opening that Wal-Mart raised its earnings estimate for the first quarter of fiscal 2009, partially due to strong sales of electronics.
The index moved into positive territory shortly before 10 a.m. ET and maintained those gains until the closing, reaching a session high of 710 just before 2 p.m. ET.
Also helping the bulls establish their dominance was news before the start of trading that the semiconductor sector has been upgraded by Banc of America Securities. The sector includes small-caps EMCORE Corp. (Nasdaq:EMKR) and San Jose, Calif.-based Micrel Inc. (Nasdaq:MCRL). Both companies saw their stock rise.
Elsewhere, Apogee Enterprises Inc. (Nasdaq:APOG) was one of the big small-cap winners today. The Minneapolis-based maker of glass products reported after Wednesday’s close that fourth-quarter profit increased 48%.
“We had a strong finish to the fiscal year,” CEO Russell Huffer said in a conference call. “We are expecting another outstanding year in fiscal 2009.
In economic news, the U.S. Labor Department reporting before the opening that jobless claims for the week ended April 5 fell a greater-than-expected 53,000 to 357,000 from the preceding week’s upwardly revised total of 410,000.
However, the four-week moving average, considered a more stable measure, rose to its highest level in more than two years.
“It does not surprise me that the four-week moving average for jobless claims is at its highest in two years, given the weakness in the economy,” said Arun Raha, vice president of economic research and consulting for the North American operations of reinsurance company Swiss Re, in an email. “I expect the situation to get worse before it gets better.”
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:
• Apogee Enterprises, Inc. (Nasdaq:APOG), up 18% to $19.84.
• Jos. A. Bank Clothiers, Inc. (Nasdaq:JOSB), up 17% to $26.50 on news of a rise in 2007 earnings.
• Christopher & Banks Corp. (NYSE:CBK), up 16% to $11.45 despite news of a fourth-quarter loss.
• The Pantry, Inc. (Nasdaq:PTRY), down 30% to $11.35.
• Tween Brands Inc. (NYSE:TWB), down 23% to $17.91 on news it lowered its first-quarter earnings forecast.
• Super Micro Computer, Inc. (Nasdaq:SMCI), down 19% to $7.63 on news it has lowered its fiscal third-quarter guidance.
Volume leaders:
• Pier 1 Imports, Inc. (NYSE:PIR) 9,194,600 shares traded on news of a fourth-quarter profit.
• The Pantry, Inc. (Nasdaq:PTRY) 6,647,900 shares traded.
• Nektar Therapeutics (Nasdaq:NKTR) 5,496,800 shares traded.
The day saw 26 small-cap stocks set 52-week lows, while four small caps established a 52-week high.
