Russell 2000 set to increase
The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will probably open in the green on news of strong earnings.
The bulls are poised this morning following news of better-than-expected earnings from the tech sector.
Search engine Yahoo! Inc. (Nasdaq: YHOO) got the ball rolling after the close on Tuesday when the Sunnyvale, Calif.-based company reported third-quarter net income that outpaced Wall Street’s projections.
This morning Intel Corp. (Nasdaq: INTC) also beat analysts’ third-quarter forecasts, while United Technologies Corp. (NYSE: UTX) announced that its net income increased 20% due to strong demand across the board and revenue rose 14%. Wall Street was expecting more modest gains.
However, holding the bulls down is news that September U.S. housing starts fell to the lowest rate in 14 years.
The Census Bureau reported that builders broke ground on 1.191 million units at an annualized pace in September, well below the 1.285 million units expected by economists. Housing starts were an upwardly revised 1.327 million in August.
In other economic news, the U.S. Labor Department reported that the consumer price index, the main measure of inflation, grew 0.3% in September, following a fall of 0.1% in August. Economists were expecting a slightly lower reading of 0.2%. Core inflation, which excludes the cost of food and energy, was 0.2%, in line with economists’ forecast.
Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• China Techfaith Wireless Communication Technology Ltd. (CNTF), up 38% on news of a contract with the Chinese government.
• Ligand Pharmaceuticals Inc. (LGND), up 13%.
• Century Casinos Inc. (CNTY), up 11% on news of improvements at the company’s facilities.
Biggest percentage losers:
• EXACT Sciences Corp. (EXAS), down 32% on news of a warning letter from the U.S. Food and Drug Administration.
• WebMD Health Corp. (WBMD), down 12% on news of weak preliminary third-quarter results.
• Seacoast Banking Corp. (SBCF), down 6% on news of an expected third-quarter loan loss provision of about $8.4 million.
