Russell 2000 sagging
The Russell 2000 (NYSE: IWM) has stumbled following news of poor earnings from major players.
At 10:08 a.m. ET, the small-cap index had lost 3.80 points, or 0.45%, to 841.92. The Dow Jones Industrial Average (INDU) was down 60.07 points, or 0.42%, to 14,104.46.
The Russell 2000 futures were pointing higher but small caps opened lower following news that aluminum giant Alcoa Inc. (NYSE: AA) missed earnings expectations. The New York-based company, the first big player to report third-quarter earnings, reported a profit of $555 million. That’s a net income of $0.63 per share, while analysts were forecasting $0.64 per share.
Continuing the disappointing earnings trend, energy giant Chevron Corp. (NYSE: CVX) warned that its third-quarter profit would fall due to lower gasoline prices. During the second quarter, the San Ramon, Calif.-based company achieved a profit of $5.4 billion, the highest in its history.
Elsewhere, the Mortgage Bankers Association reported that its weekly measure of mortgage loan application volume increased 2.4% for the seven days ended Oct. 5.
The refinance index also increased, adding 2.7%, while the refinance share of mortgage activity increased to 46.2% of total applications from 46% during the previous week. That’s a sign that homeowners are refinancing adjustable mortgages before they reset to higher rates.
Turning to stock markets overseas, Japan’s Nikkei 225 advanced 0.1%. In Europe, the United Kingdom’s FTSE 100 index let go 0.1%, while Germany’s DAX 30 index rose 0.2%.
