Small caps fall
The Russell 2000 (NYSE: IWM) is down after opening with modest gains as investors reacted to upbeat earnings news.
At 10:41 a.m. ET, the small-cap index was down 1.34 points, or 0.16%, to 820.05. The Dow Jones Industrial Average (INDU) had added 33.08 points, or 0.24%, to 13,839.78.
There is nothing major being released on the economic front today, so all eyes are focused on the latest corporate earnings.
Verizon Communications Inc. (NYSE: VZ), the second largest U.S. telecommunications company, announced before the opening that revenue for the third-quarter increased 5.8% to $23.8 billion from $22.5 billion a year earlier. However, net income declined by 34% to $1.27 billion, compared with $1.92 billion during the third quarter of 2006.
Computer maker Dell Inc. (Nasdaq: DELL) also contributed to the bullish sentiment when it said that it would consider making more acquisitions. Round Rock, Texas-based Dell has acquired five companies in the past two years.
The Russell 2000 opened in positive territory, but unexpectedly fell after about 10:15 a.m. ET.
Among small-cap companies, Gehl Co. (Nasdaq: GEHL) is down on news that the maker of compact construction equipment reported a decline in third-quarter income. Meanwhile, North American Galvanizing & Coatings (Nasdaq: NGA) is gaining ground on news before the start of trading that third-quarter profit more than doubled.
The U.S. Federal Reserve will kick-off its two-day policy meeting on Tuesday. A decision will be declared on Wednesday, with a minority of investors betting that the Fed will move to lower its target interest rate from the current level of 4.75%.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Graham Corp. (GHM), up 5%.
• ValueVision Media Inc. (VVTV), up 1%.
• NetScout Systems Inc. (NTCT), up 1% on news of a contract to develop network operations.
Biggest percentage losers:
• Online Resources Corp. (ORCC), down 4% after reporting poor third-quarter earnings in Friday.
• Clayton Holdings Inc. (CLAY), down 18%.
• US BioEnergy Corp. (USBE), up 3%.
