Small caps open with decline
The Russell 2000 (NYSE:IWM) is in negative territory despite mixed economic and financial news.
At 10:12 a.m. ET, the small-cap index was down 1.69 points, or 0.25%, to 686.47. The Dow Jones Industrial Average was down 1.14 points, or 0.01%, to 12,324.28.
Small-cap stocks opened in the red as news of a major bank feeling the pinch from the subprime mortgage debacle apparently outweighed news of unexpectedly strong March retail sales.
Wachovia Corp. (NYSE:WB) reported before the start of trading that it swung to a first-quarter loss. The Charlotte, N.C.-based bank also cut its dividend and said that it will sell common and preferred stock to raise capital.
However, there is also bullish news, coming in the form of a U.S. Census Bureau report before the opening that U.S. retail sales unexpectedly rose 0.2% in March. Economists were expecting sales to stay flat. The increase was largely due to sales at gasoline stations, which jumped 1.1%.
Among the small-cap losers this morning is American Apparel, Inc. (AMEX:APP). Shares of the Jackson, Wyo.-based apparel maker are down despite news that it plans on opening a store in China.
On the flip side, shares of Phazar Corp. (Nasdaq:ANTP) are higher on news before the opening that the maker of communication accessories posted robust third-quarter results.
