Russell futures flat
The Russell 2000 (NYSE: IWM) futures are treading flat this morning as traders digest a slew of economic news and dreary corporate news surrounding the credit crunch.
The Labor Department reported this morning reported that initial jobless claims for the week ended Dec. 22 increased by 349,000, compared with an increase of 346,000 the previous week.
Durable goods orders for the month of November edged up a less-than-forecasted 0.1% from October’s 0.4% decline. Economists were forecasting an increase of 2.5%.
The Mortgage Bankers Association released its weekly Mortgage Applications Survey — a survey that tracks mortgage applications volume for new homes purchased and for mortgage refinancing activity — for the week ending Dec 21. Mortgage applications slid to 603.8 from last week’s 653.8.
In corporate news, Goldman Sachs issued a note late Wednesday speculating that financial juggernaut Citigroup Inc. (NYSE: C) might have to slash its dividend by 40% in light of now greater-than-forecasted write-downs for bad bets on collateralized debt obligations. Goldman is now projecting write-downs in the neighborhood of $18.7 billion, up from the investment bank’s previous estimate of $11 billion.
In related news surrounding the unfolding of the credit crisis, Fitch Ratings put 205 residential mortgage-backed securities backed by bond insurers, including MBIA and Ambac Financial Group, on review for a downgrade.
Treasuries climbed for the first time in five days ahead of the Census Bureau’s consumer confidence index for the month of December, which is due out at 10 a.m. ET. Economists forecast consumer confidence will ease to 87 from 87.3 last month.
Biggest percentage gainers:
• Document Sciences Corp. (DOCX), up 75.5% to $14.45 on news that EMC Corp. will buy the company for about $85 million.
• Sequenom Inc. (SQNM), up 9.1% to $9.75 on news that New York State approved its noninvasive prenatal test for Cell Free Fetal Nucleic Acid assessment.
• Noven Pharmaceuticals Inc. (NOVN), up 8.6% to $15.75 on news that the FDA tentatively approved its drug Stavzor.
Biggest percentage losers:
• China Technology Development Group Corporation (CTDC), down 3.6% to $9.53.
• Hoku Scientific, Inc. (HOKU), down 3.1% to $12.30.
• World Acceptance Corp. (WRLD), down 2.9% to $28.
