Russell 2000 rallies higher
The Russell 2000 (NYSE:IWM) and the Dow have added to their earlier gains. At 3:02 p.m. ET, the small-cap index had climbed 16.61 points, or 2.50%, to 680.74. The Dow Jones Industrial Average (INDU) was up 251.23 points, or 2.08%, to 12,350.89.
Stocks small and large are rising on news after the start of trading that a key factory index came in better than expected. The Philadelphia Federal Reserve reported that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.
The numbers show continued weakness and represent the longest period of contraction in five years.
“The Philly Fed number was indeed higher than expected, albeit still down,” said Arun Raha, vice president of economic research and consulting for the North American operations of reinsurance company Swiss Re, in an email. “On the positive side, there is some evidence that the weak dollar is helping manufacturing exports.”
With investors bullish, shares of airline companies are leading the industry group winners. Among the gainers is Seattle-based Alaska Air Group, Inc. (NYSE:ALK).
Meanwhile, shares of AirTran Holdings Inc. (NYSE:AAI) are losing altitude on news before the opening that the Orlando, Fla.-based company will cancel flights between the Twin Cities and Chicago’s Midway Airport.
