Russell 2000 moves into the green
The Russell 2000 (NYSE:IWM) has trimmed its earlier losses and is posting a gain despite news of a steeper-than-expected decline in pending home sales.
At 11:41 a.m. ET, the small-cap index was up 0.50 points, or 0.07%, to 713.18. The Dow Jones Industrial Average had shed 27.76 points, or 0.22%, to 12,584.67.
Stocks small and large have rebounded from their earlier losses despite news after the start of trading that pending sales of previously owned homes fell 1.9% in February, according to the National Association of Realtors. Economists were expecting a decline of 0.7% following an upwardly revised gain of 0.3% in January.
The measure is considered a barometer of future housing sales activity and the February decline tells us that the slump in the housing sector has not yet bottomed out.
Despite the bearish news, the Russell 2000 began rising unevenly at about 9:50 a.m. ET, and briefly broke into positive territory shortly before 11 a.m. ET. Stocks started in the red on news before the opening that aluminum producer Alcoa Inc. (NYSE:AA) saw its first-quarter profit decline more than expected.
Coal companies are currently the best-performing industry group. Among the winners is small-cap National Coal Corp. (Nasdaq:NCOC), which operates in east Tennessee and southeastern Kentucky. Shares of Richmond, Va.-based James River Coal Co. (Nasdaq:JRCC) are also higher.
On the flip side, audio and video equipment makers are the worst-performing industry group. Among the losers is SiRF Technology Holdings, Inc. (Nasdaq:SIRF), which provides GPS-based location technology solutions.
