Russell leads as Dow nears 14,000
The Russell 2000 (NYSE: IWM) is the most bullish of the major indices so far today, while the Dow Jones Industrial Average (INDU) is within reach of 14,000. At 1:03 p.m. ET the Russell 2000 had added 2.59 points, or 0.31%, to 851.06. The Dow was up 32.68 points, or 0.23%, to 13,983.66.
The bulls went into action as soon as the opening bell rang, following news earlier that the U.S. producer price index, which tracks the price of domestically produced goods, fell at a seasonally adjusted rate of 0.2% in June, according to the Labor Department.
Economists were projecting an increase of 0.1%.
The statistics suggest that inflation has not picked up despite a tight labor market and the higher price of oil, which is currently at $74 a barrel. The unemployment rate is at 4.5%.
Elsewhere, industrial production in June added 0.5%, above the projected rise of 0.3%, the Fed said before the opening bell.
Total industrial production for the second quarter of 2007 has advanced at an annual rate of 2.9%, more than twice the rate of 1.1% during the first three months of the year.
That’s a sign that U.S. economic growth has accelerated.
June capacity utilization moved up to 81.7%, compared with 81.4% in May, indicating that there is some extra production capacity that can be put to use without leading to inflationary pressures.
All told, the U.S. economy appears to be on track for modest growth without an uptick in inflation.
In corporate news, San Francisco-based financial services heavyweight Wells Fargo & Co. (NYSE: WFC) reported record second quarter revenues and profits.
In the small-cap sector, Virginia Commerce Bancorp Inc. (Nasdaq: VCBI) beat second quarter estimates while Macatawa Bank Corp. (Nasdaq: MCBC) posted a decline in profits.
