Russell 2000 turns volatile
The Russell 2000 (NYSE: IWM) is unsteady following mixed economic news.
At 10:54 a.m. ET, the small-cap index was down 1.07 points, or 0.16%, to 685.11. The Dow Jones Industrial Average (INDU) had shed 44.45 points, or 0.36%, to 12,221.94.
Factory activity fell to 48.3 in February from 50.7 in January, the Institute for Supply Management reported after the start of trading. Economists were expecting to see a slightly steeper decline. Readings below 50 indicate a contraction.
“The manufacturing sector failed to grow during the month as the PMI fell below 50 percent, which indicates weaker performance in February when compared to January,” said Norman Ore, chair of the ISM’s Business Survey Committee, in a statement. “Manufacturers’ order backlogs continue to erode as the New Orders Index remained below 50 percent for the third consecutive month.”
Meanwhile, the U.S. Census Bureau reported after the opening that construction spending fell more than expected in January. The numbers show a 1.7% decline to a seasonally adjusted annual rate of $1.121 trillion. Private home construction led the way down, falling 3%.
The Russell 2000 rebounded from its earlier losses, rising into the green at about 10:10 a.m. ET, before falling again at about 10:50 a.m. ET.
Among the small-cap stocks posting gains is Palomar Medical Technologies, Inc. (Nasdaq: PMTI). The Burlington, Mass.-based maker of lasers for medical and cosmetic procedures announced before the opening that it has signed an agreement with consumer-product maker Procter & Gamble Co. (NYSE: PG) to develop a home hair-removal system for women.
Meanwhile, shares of Genesco Inc. (NYSE: GCO) are down on news before the opening that the footwear retailer will see its merger with The Finish Line Inc. (Nasdaq: FINL) terminated.
Shares of medical device maker NuVasive, Inc. (Nasdaq: NUVA) are also sagging on news before the start of trading that the San Diego, Calif.-based company plans on offering $200 million in senior notes to institutional buyers.
