Small caps hurt by economy
The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling fast on poor economic news that makes a recession more likely.
At 10:13 a.m. ET, the small-cap index was down 7.33 points, or 1.10%, to 659.98. The Dow Jones Industrial Average (INDU) had shed 133.02 points, or 1.10%, to 11,977.22.
Stocks are falling across the board following news before the start of trading that U.S. retail sales unexpectedly fell in February, while the labor market is showing weakness.
The U.S. Commerce Department reported this morning that sales dropped 0.6% to $380.2 billion, defying economists’ forecasts for an increase of 0.2%. Sales in January posted an upwardly revised gain of 0.4%.
Meanwhile, the U.S. Labor Department announced that the number of workers applying for unemployment benefits was unchanged at 353,000 for the week ended March 8. According to the same report, the number of workers claiming jobless aid increased 7,000 to 2,835,000 for the week ended March 1. That’s the highest level in more than two years.
Aspect Medical Systems, Inc. (Nasdaq: ASPM) is among the biggest small-cap losers this morning. The Norwood, Mass.-based maker of an anesthesia monitoring system reported after Wednesday’s close that a study of one of its products did not return positive results.
Shares of Gray Television, Inc. (NYSE: GTN) are also in bearish territory on news before the start of trading that the Atlanta, Ga.-based company saw its fourth-quarter net income nosedive 80%.
Investors are also taking a dim view of shares of Akeena Solar, Inc. (Nasdaq: AKNS). The maker of solar power systems reported before the start of trading that its fourth-quarter loss widened.
