Small caps narrow losses
The Russell 2000 (NYSE:IWM) is in negative territory but has narrowed its morning losses.
At 12:16 p.m. ET, the small-cap index had declined 0.63 points, or 0.09%, to 701.48. The Dow Jones Industrial Average (INDU) had retreated 14.00 points, or 0.11%, to 12,408.86.
Economic growth in the fourth quarter of 2007 was as slow as economists were expecting, according to figures released before the opening. The U.S. Commerce Department announced that gross domestic product rose at the previously announced annual pace of 0.6%.
That’s significantly lower than the 4.9% growth recorded in the third quarter of 2007 and a sign that the economy has cooled. Many observers expect to see a contraction when the data for the first quarter of 2008 are released in late April.
In other economic news, the U.S. Labor Department reported before the start of trading that jobless claims for the week ended March 22 fell 9,000 to a downwardly revised level of 375,000. That’s better than what economists were expecting.
With equities sagging, shares of companies providing security systems and services are the worst performing industry group. Small-cap LoJack Corp. (Nasdaq:LOJN), which provides technology for the tracking and recovery of mobile assets, is down.
Similarly, shares of Israel-based Ituran Location and Control Ltd. (Nasdaq:ITRN) are also trading in the red.
Meanwhile, construction and raw materials companies are the best performing industry group. However, shares of small-cap concrete maker U.S. Concrete Inc. (Nasdaq:RMIX) are flat.
