Small caps fall on weak jobs data
The Russell 2000 (NYSE:IWM) opened in negative territory on news of a sharp increase in weekly jobless claims.
At 10:03 a.m. ET, the small-cap index had dropped 1.82 points, or 0.26%, to 710.45. The Dow Jones Industrial Average was off 17.09 points, or 0.14%, to 12,588.74.
Jobless claims for the week ended March 29 increased 38,000 to 407,000, the U.S. Labor Department reported before the opening. That’s the highest level in more than two years and a sign that economy growth has stalled.
Economists were expecting a smaller increase from the preceding week’s upwardly revised figure of 369,000.
Among the small-cap losers this morning is Sequenom Inc. (Nasdaq:SQNM). The San Diego, Calif.-based genetics company announced before the opening that it’s lowering its 2008 revenue forecast due to slow sales of one of its products.
On the flip side, shares of Dendreon Corp. (Nasdaq:DNDN) are higher on news before the start of trading that the biotechnology company has sold 8 million shares of its common stock for about $47 million.
