Russell 2000 ready to climb
The Russell 2000 (NYSE: IWM) futures are pointing higher and the small-cap index is ready to go up following good news about a major U.S. lender and a fall in jobless claims.
Bank of America Corp. (NYSE: BAC) has bought a $2 billion stake in troubled mortgage lender Countrywide Financial Corp. (NYSE: CFC). The deal, which was announced after Wednesday’s close and has since been approved by regulators, is a welcome reprieve for Countrywide, the largest U.S. mortgage lender.
In the past couple of weeks the Calabasas, Ca.-based company has struggled to find the funds necessary to stay afloat and has had to deal with rising delinquencies.
A number of lenders nationwide have gone bankrupt in the wake of the slump in the U.S. housing sector and the subprime mortgage mess.
Elsewhere, unemployment claims for the week ended August 18 fell by 2,000 to 322,000, according to the U.S. Labor Department. That’s inline with economists’ expectations and a sign that the labor market remains healthy.
The less volatile four-week average increased to 317,750 from 313,000.
