Russell 2000 might sag
The Russell 2000 (NYSE: IWM) futures are a hair above the close on Monday but the small-cap index will be weighed down by rate cut uncertainty.
Investors will focus on the U.S. Federal Reserve, which begins a two-day policy meeting today. On Monday, observers were confident that the Fed will cut its target interest rate up to 0.50%, but today an article in The Wall Street Journal is casting doubt on that expectation.
The central bank will announce its decision on Wednesday.
In corporate news, shares of United States Steel Corp. (NYSE: X) are hurting after the steel producer reported this morning that third-quarter net income fell 35%.
On the other hand, small-cap company FreightCar America, Inc. (Nasdaq: RAIL) reported a third-quarter profit that beat analysts’ expectations.
Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Packeteer Inc. (PKTR), up 12% on news it has resolved a dispute with the IRS.
• Actuate Corp. (ACTU), up 8% on news that third-quarter profit beat expectations.
• Interactive Intelligence Inc. (ININ), up 7% on news third-quarter profit fell but beat Wall Street’s projections.
Biggest percentage losers:
• LCA-Vision Inc. (LCAV), down 19% on news of a weak fourth-quarter outlook.
• RAM Holdings Ltd. (RAMR), down 18% on news of a third-quarter loss.
• Secure Computing Corp. (SCUR) down 15% on news of a wider third-quarter loss.
