Russell 2000 stays in the red
The Russell 2000 (NYSE: IWM) has returned to negative territory after a brief foray in the green. At 11:14 p.m. ET, the small-cap index had lost 4.49 points, or 0.67%, to 667.08. The Dow Jones Industrial Average (INDU) had surrendered 116.08 points, or 0.97%, to 11,855.11.
The bears are dominant on Wall Street following news before the start of trading that Apple Inc. (Nasdaq: AAPL) forecasted a slower sales growth for the second quarter and a forecast by Motorola Inc. (NYSE: MOT) that it will swing to a loss in the current quarter due to a decline in sales of its mobile devices.
Among small-cap companies, Bolt Technology Corp. (Nasdaq: BOLT) reported second-quarter fiscal 2008 earnings that missed analysts’ projections. The Norwalk, Conn.-based developer of seismic energy sources and underwater connectors announced earnings of $3.6 million, or $0.42 per share, below the expected $0.68 per share.
However, the result represents a 52% year-over-year increase.
In economic news, the Mortgage Bankers Association reported that its weekly index of mortgage application volume rose 8.3% for the seven days ended Jan. 18, its third consecutive increase. The Washington, D.C.-based trade association’s index hit a level of 981.5, compared with 906.4 one week earlier.
“Refinance applications are up 92% since the beginning of November and purchase applications are up 7%,” said Jay Brinkmann, vice president of Research and Economics, in a statement. “With tighter credit conditions we do not know how many of these applications will become loans, but it is clear that borrowers are responding to the 40 to 80 basis point drop in rates we have seen since Nov. 2 across products.”
