Small caps extend slide
The Russell 2000 (NYSE: IWM) and the other major U.S. indices have extended their earlier losses. At 1:43 p.m. ET, the small-cap index had retreated 9.30 points, or 1.38%, to 662.27. The Dow Jones Industrial Average (INDU) had declined 195.18 points, or 1.63%, to 11,776.01.
Stocks small and large have moved deeper into negative territory as investors once again get the economic jitters.
Leading the way down are capital goods, followed by basic materials such as iron and steel. The tech sector, which has been getting the lion’s share of attention today, is also aching.
That’s because Apple Inc. (Nasdaq: AAPL) announced before the opening that it expects slower sales growth for the second quarter, while Motorola Inc. (NYSE: MOT) indicated that it will swing to a loss in the current quarter due to a decline in sales of its mobile devices.
Largely disregarded was news from drug maker Pfizer Inc. (NYSE: PFE). The New York-based company reported before the start of trading that its fourth-quarter profit was $3.6 billion, or $0.52 per share, above Wall Street’s forecasted earnings of $0.47 per share. Chairman and CEO Jeff Kindler attributed the result to cost reductions and the weak dollar.
But overall, pharmaceutical shares are sagging thus far in the session. Retailers are among the few gainers, followed by the transportation sector, represented by trucking and railroad companies.
Elsewhere, the declining stock market and fears of a U.S. recession have combined to lower the price of oil $2.11 to $87.10 a barrel.
