Russell 2000 slipping
The Russell 2000 futures have turned south and the small-cap index is likely to open in negative territory on concerns that credit problems could dampen corporate earnings.
With little in the way of economic news, investor sentiment is driven by earnings.
Wilmington, Del.-based chemicals company E. I. du Pont de Nemours and Comp. (NYSE: DD), better known as DuPont, reported flat second quarter earnings compared with a year earlier as the depressed U.S. housing sector lowered demand for paint and kitchen countertops.
That’s a sign that the housing mess may have spilled over into corporate earnings.
Adding to those fears was Countrywide Financial Corp. (NYSE: CFC), the largest U.S. mortgage lender, which reported that net income decline for the third straight quarter and missed analysts’ projections.
Elsewhere, Atlanta-based Beazer Homes USA Inc. (NYSE: BZH), which builds single-family homes, announced after Monday’s close that it is being investigated by the U.S. Securities and Exchange Commission to determine whether any person or entity related to the company violated federal securities laws. The company is also under investigation by the FBI and the US Attorney’s office in Charlotte, N.C., for possible mortgage fraud.
