Russell 2000 sees green
The Russell 2000 (NYSE: IWM) and the other major U.S. indices opened in positive territory on good economic news and an upbeat forecast from Wal-Mart.
At 10:16 a.m. ET, the small-cap index had added 4.52 points, or 0.53%, to 849.71. The Dow Jones Industrial Average (INDU) had advanced 77.39 points, or 0.55%, to 14,156.08.
Retailers posted generally weak same-store results for September due to unusually warm weather that stalled sales of cold-weather merchandise. Among small-cap retailers, Gottschalks Inc. (NYSE: GOT) and department store chain The Bon-Ton Stores, Inc. (Nasdaq: BONT) reported same-store sales declines of 3.9% and 6.5%, respectively. Meanwhile, home accessories retailer Tuesday Morning Corp. (Nasdaq: TUES) missed analysts’ projected first-quarter sales forecast.
However, the bulls seized on news that Wal-Mart Stores Inc. (NYSE: WMT) raised its third-quarter profit outlook despite second-quarter results that came in at the low end of its expectations.
In economic news, jobless claims for the week ended Oct. 6 fell by 12,000 to a level of 308,000, according to the U.S. Labor Department.
Elsewhere, U.S. import prices rose in September due to more expensive oil and food, but August U.S. exports increased 0.4% to $138.34 billion, while imports fell 0.4% to $195.92 billion. The Commerce Department also reported that the U.S. trade deficit contracted 2.4% to $57.59 billion in August, from $59.00 billion a month earlier.
The numbers on jobs and trade show a tight labor market and a strong U.S. economy.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• City Telecom Ltd. (CTEL), up 85% to $9.70.
• LJ International Inc. (JADE), up 37% to $6.60.
• AgFeed Industries Inc. (FEED), up 28% to $15.40 on news it has received approval to transfer listing from the Nasdaq Capital Market to the Nasdaq Global Market.
Biggest percentage losers:
• E-Z-EM, Inc. (EZEM), down 14% to $16.95 due to news of a first-quarter profit decline.
• Corel Corp. (CREL), down 5% to $12.42 on news of a third-quarter loss.
• Williams Controls, Inc. (WMCO), down 10% to $16.05.
