Small caps close in the red
The Russell 2000 (NYSE:IWM) fell for the first time this week on news of an unexpected decline in February orders for durable goods. The small-cap index lost 3.16 points, or 0.45%, to 702.11. The Dow Jones Industrial Average (INDU) was off 109.74 points, or 0.88%, to 12,422.86.
On a year-to-date basis, the Russell 2000 has shed 8.34%, while the Dow is down 6.35% and the S&P 500 has decreased 8.66%.
Stocks small and large opened in negative territory and never looked up on news before the start of trading that orders for manufactured durable goods fell 1.7% in February, according to the U.S. Census Bureau. Economists were expecting durable goods to increase 0.8% after downwardly revised drop of 4.7% in January.
The same report also showed that orders for nondefense capital goods excluding aircraft, an important measure of business spending, fell 1%. The numbers once again raise fears that U.S. economic growth has stalled.
Separately, after the opening the Census Bureau announced mixed housing data. Sales of single-family homes fell 1.8% in February, but median home price climbed 8.2%, suggesting the housing slump may have reached its end.
The Russell 2000 reached its session low at 11 a.m. ET, when the index fell to 696 points. Airline companies were the worst-performing industry group, with shares of ExpressJet Holdings, Inc. (NYSE:XJT) descending 7%, while Phoenix-based Mesa Air Group, Inc. (Nasdaq:MESA) declined 2%.
Elsewhere, boating supplies and accessories retailer West Marine, Inc. (Nasdaq:WMAR) was also among the small-cap losers.
Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:
• Basin Water, Inc. (BWTR), up 16% to $6.40 on news of a 10-year agreement with California’s Salinas District to remove nitrates from one well site.
• Ceragon Networks Ltd. (CRNT), up 16% to $9.29 on news of a new product.
• Targanta Therapeutics Corp. (TARG), up 14% to $9.07.
• ATA Inc. (ATAI), down 14% to $9.01.
• Beazer Homes USA, Inc. (BZH), down 14% to $8.75 on news its credit rating was cut to “junk” status.
• Charlotte Russe Holdings, Inc. (CHIC), down 13% to $17.42 on news of a disappointing third-quarter earnings forecast.
• Solarfun Power Holdings Co., Ltd. (SOLF) 7,732,900 shares traded.
• AirTran Holdings, Inc. (AAI) 4,515,800 shares traded following news it will add one daily roundtrip flight between Baltimore and Seattle.
• EMCORE Corp. (EMKR) 3,967,500 shares traded.
The day saw nine small-cap stocks set 52-week lows, while 11 small caps established a 52-week high.
