Russell 2000 takes off
The Russell 2000 (NYSE: IWM) is soaring on news of the U.S. Federal Reserve’s plan to boost liquidity.
At 10:05 a.m. ET, the small-cap index was up 14 points, or 2.17%, to 657.97. The Dow Jones Industrial Average (INDU) had added 233.65 points, or 1.99%, to 11,973.80.
Stocks small and large are flying on news before the start of trading that the U.S. Federal Reserve will make up to $200 billion available to financial institutions. The Fed said that the cash will be lent to banks for a term of 28 days.
Also involved in the plan are the central banks of Canada, the United Kingdom, Switzerland, as well as the European Central Bank.
The move is the latest attempt to pump liquidity into the financial system and ease the credit squeeze that is threatening to push the U.S. economy into a recession.
With stocks rising, one of the biggest small-cap gainers is Systemax Inc. (NYSE: SYX). Shares of the Port Washington, N.Y.-based direct marketer of brand name and private-label products are higher on news after the close on Monday that fourth-quarter sales rose 19%.
Similarly, Duff & Phelps Corp. (NYSE: DUF), which provides financial advisory and investment banking services, made investors happy when it announced before the opening that 2007 revenues jumped 38.3% to $341.2 million.
Shares of New York-based Anthracite Capital, Inc. (NYSE: AHR) are also in the green despite news before the start of trading that the specialty finance company saw its fourth-quarter earnings fall 44% due to weaker credit markets.
