Russell 2000 loses grip
The Russell 2000 (NYSE: IWM) has erased its morning gains after news of a fresh spike in the price of oil. At 1:32 p.m. ET, the small-cap index was down 3.53 points, or 0.43%, to 819.82. The Dow Jones Industrial Average (INDU) had shed 74.14 points, or 0.53%, to 13,838.80.
The price of oil continues to set record highs, up $0.54 to $88.15 a barrel on news that the Turkish parliament overwhelmingly approved a military attack into northern Iraq in order to fight Kurdish rebels.
Military conflict could disrupt supplies from Iraq, the world’s third largest exporter.
Stocks started falling soon after 12 p.m. ET, the early gains made after major tech players reported better-than-expected earnings quickly disappearing.
Meanwhile, U.S. President George Bush said today that homeowners need help in order to avoid foreclosures, but spoke out against a bailout of lenders whose loose lending practices contributed to the current housing recession.
Speaking of the housing recession, before the opening the U.S. Census Bureau announced that housing starts for the month of September fell to an annualized pace of 1.191 million, the lowest in 14 years. Economists were expecting a rate of 1.285 million units following August’s upwardly revised level of 1.327 million privately owned housing units.
Building permits, an indicator of future construction plans, also fell.
In other economic news, the consumer price index, the main measure of inflation, grew 0.3% in September, just above the expected rise of 0.2%.
However, core inflation, which excludes the cost of food and energy, came in at 0.2%, as projected.
The numbers reveal that inflation is in check and that the biggest challenge facing the U.S. economy is the seemingly never-ending slump in the housing sector.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• China Techfaith Wireless Communication Technology Ltd. (CNTF), up 24% on news of a contract with the Chinese government.
• Alto Palermo S.A. (APSA), up 14%
• Fuel Tech Inc. (FTEK), up 13% on news of a $7.2 million contract.
Biggest percentage losers:
• Triad Guaranty Inc. (TGIC), down 18%.
• Thomas Group Inc. (TGIS), down 10% on news of a lower third-quarter profit.
• Advanced Battery Technologies Inc. (GBT), down 9%.
