Russell 2000 stays flat
The Russell 2000 (NYSE: IWM) has shed its earlier gains on news of poor regional manufacturing data.
At 11:38 a.m. ET, the small-cap index was up 0.21 points, or 0.03%, to 710.23. The Dow Jones Industrial Average (INDU) had lost 13.92 points, or 0.11%, to 12,413.34.
Small-cap stocks erased all of their earlier gains and slipped into the red shortly before 11 a.m. ET, following news that the Philadelphia Federal Reserve’s regional index of manufacturing conditions fell to -24 in February from a reading of -20.9 in January.
Economists were expecting to see a slight increase from the level in January, which was the lowest reading since 2001. A reading above zero indicates an expansion.
Companies reported that the price inputs increased while general activity, shipments and new orders remained negative.
The future general activity index turned sharply negative, declining to -16.9 from 5.2 in January.
The numbers once again raised fears of an economic recession.
Shares of VASCO Data Security International, Inc. (Nasdaq: VDSI) are among the biggest losers on news that the Oakbrook Terrace, Ill.-based maker of hardware and software security systems reported a decline in fourth-quarter profit due to higher operating costs.
Machine tool manufacturer Hardinge Inc. (Nasdaq: HDNG) is also seeing its stock decline following news of a fourth-quarter loss.
Shares of Boston Private Financial Holdings, Inc. (Nasdaq: BPFH) are also posting double-digit percentage declines on news that the bank holding company will have to raise the loan loss provision at one of its affiliates by $16 million and $19 million
