Russell 2000 stumbles
The Russell 2000 (NYSE: IWM) and the other major U.S. indices are moving down. At 1:38 p.m. ET, the small-cap index had shed 4 points, or 0.51%, to 782.95. The Dow Jones Industrial Average (INDU) was down 12.03 points, or 0.09%, to 13,607.86.
Job creation is moving along at modest pace, but Americans have become more pessimistic about the economy, according to separate news reports released this morning.
The U.S. Labor Department announced before the start of trading that nonfarm payroll employment increased 94,000 in November. That’s below October’s upwardly revised total of 170,000 but above economists’ projected job growth of 70,000. The decline in job growth is consistent with a slowing economy.
The unemployment rate is unchanged at 4.7%, which translates to 7.2 million workers.
Small-cap stocks opened in the green but fell immediately after. The index hit its lowest point in the morning session at 10 a.m. ET, when the University of Michigan said that preliminary numbers for November’s consumer confidence showed the index is at its lowest level in two years.
The index of consumer sentiment fell to 76.1 in the November, down from 80.9 in October and well below the level of 92.1 in November of 2006.
“Rising prices for fuel and food had a devastating impact on household budgets, and falling home prices have diminished consumers’ sense of financial security,” said survey director Richard Curtin in a statement.
Consumer sentiment refers to how willing Americans are to spend their money in the future. It’s directly related to the strength of consumer spending, which is about 70% of gross domestic product.
At noon ET, stocks managed to rebound from their lows and briefly rose above the flat line, only to quickly fall again.
Elsewhere, the price of oil has fallen $2.96 to $87.27.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• IMAX Corp. (IMAX), up 62% on news it will install 100 digital projection systems in AMC Entertainment Inc. theaters.
• Liquidity Services, Inc. (LQDT), up 24% on news it forecasted first-quarter and fiscal 2008 earnings per share above analysts’ expectations.
• ICO, Inc. (ICOC), up 20% on news of higher fourth-quarter profit.
Biggest percentage losers:
• Smith & Wesson Holding Corp. (SWHC) down 28% on news an analyst reduced the stock’s target price.
• Cascade Corp. (CAE) down 17% on news of third-quarter earnings below estimates.
• Palm, Inc. (PALM), down 17% on news of a lowered second-quarter revenue outlook.
