Small caps poised for higher opening
Small caps are poised for a higher opening this morning, riding a wave that kicked off after Tuesday’s close when the market embraced earnings news from giant chip maker Intel Corporation (Nasdaq:INTC). The Russell pushed up about 0.70% overnight on the news, and appeared to hold onto those gains through this morning’s CPI and Housing Starts reports, with the iShares Russell Trust up about 0.80% (NYSE:IWM) heading into the open.
The market still must navigate through Industrial Production data, which comes out at 9:15 a.m. ET. In addition, later today Federal Reserve official Janet Yellen will speak about the economic picture at 11:45 a.m. ET, and the Beige Book comes out at 2:00 p.m. ET.
From a chart perspective, the Russell 2000 Index should open into or even through resistance in the 695 zone, and the next big test is up at 705, then at 712. If the market stalls out amid all the good news today, then the key downside spot is still at 681, with additional support ahead of that point at 685.
Within the small-cap news spectrum, earnings are slated this morning from Piper Jaffray (NYSE:PJC), Renasant Corp. (Nasdaq:RNST) and EP Medsystems, Inc. (Nasdaq:EPMD).
