Small caps hold on to gains
The Russell 2000 (NYSE: IWM) is up on news that existing home sales fell less than expected in January.
At 1:31 p.m. ET, the small-cap index had added 2.04 points, or 0.29%, to 697.47. The Dow Jones Industrial Average (INDU) was up 28 points, or 0.23%, to 12,409.02.
Sales of existing homes fell 0.4% to an annualized rate of 4.89 million units, down from an upwardly revised 4.91 million units in December, the National Association of Realtors reported after the opening.
Economists were expecting to see a fall to an annual rate of 4.80 million units. The inventory of homes climbed 5.5%, while the national median home price fell 4.6% to $201,100.
“Subprime loans and other risky mortgage products have virtually disappeared from the marketplace, and over the past five months, this has been reflected in soft but fairly stable home sales,” said NAR chief economist Lawrence Yun in a statement.
News of the smaller-than-expected decline brought out the bulls, and stocks small and large have been in the green ever since 10 a.m. ET.
Shares of Hoku Scientific, Inc. (Nasdaq: HOKU) are rising on news that the Kapolei, Hawaii-based clean energy company will raise about $25 million through a securities purchase agreement.
Meanwhile, Mobile Mini, Inc. (Nasdaq: MINI), which provides portable solutions, has agreed to merge with Mobile Services Group for about $701.5 million. Tempe, Ariz.-based Mobile Mini will have to assume about $535 million in debt from Mobile Services.
Elsewhere, agriculture products provider Agria Corp. (NYSE: GRO) expects fourth-quarter revenue in the higher end of its guidance.
