Russell 2000 slides down
The Russell 2000 (NYSE: IWM) has trimmed its earlier gains and slipped into the red in midday trading, while the Dow Jones Industrial Average (INDU) is holding on to slim gains. At 1:44 p.m. ET, the small-cap index had shed 0.45 points, or 0.06%, to 809.63. The Dow had risen 43.82 points, or 0.32%, to 13,610.79.
Stocks have lost their momentum this afternoon, which came following news of strong third-quarter earnings.
Apple Inc. (Nasdaq: AAPL) set the bullish tone after the close on Monday when it reported a 67% increase in third-quarter revenue, partially driven by strong demand for Macintosh computers.
Also contributing were credit card issuer American Express Co. (NYSE: AXP), which reported before the opening that third-quarter profit rose 10%, and telecommunications giant AT&T Inc. (NYSE: T), which announced that its third-quarter net income increased 41% due to its acquisition of BellSouth Corp.
Futures were pointing north and all indices opened in positive territory. But the enthusiasm from the morning’s earnings reports started to wane around noon, with the bears gaining strength after retailer Target Corp. (NYSE: TGT) lowered its same-store sales forecast for October and Wal-Mart Stores Inc. (NYSE: WMT) said that it now plans less capital expenditures in fiscal 2007 compared with a previous forecast made in June.
Among small-cap companies, jet engine components maker EDAC Technologies Corp. (Nasdaq: EDAC) increased its third-quarter profit five-fold, but freight transportation provider Vitran Corporation Inc. (Nasdaq: VTNC) slumped to a 52-week low on news of a decline in third-quarter income.
No major economic news has come out today.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Waste Industries USA Inc. (WWIN), up 26% on news of a takeover proposal.
• Columbus Mckinnon Corp. (CMCO), up 17% on news of a rise in second-quarter profit.
• Genomic Health Inc. (GHDX), up 15% on news its breast cancer drug was mentioned by the American Society of Clinical Oncology.
Biggest percentage losers:
• Ambassadors Group Inc. (EPAX), down 43% on news its 2008 forecast was below analysts’ projections.
• hi/fn inc. (HIFN), down 21%.
• PFF Bancorp Inc. (PFB), down 18% on news it swung to a second-quarter net loss.
