Small caps post steep decline
The Russell 2000 (NYSE: IWM) posted a steep decline following news of weak economic reports. The small-cap index fell 19.54 points, or 2.77%, to 686.18, its third consecutive decrease. The Dow Jones Industrial Average (INDU) lost 315.79 points, or 2.51%, to 12,266.39.
On a year-to-date basis, the Russell 2000 has let go 10.42%, while the Dow is down 7.53% and the S&P 500 is off 9.38%.
Small-cap stocks started the session down and extended their losses as the day wore on and investors digested bearish economic news.
The U.S. Commerce Department reported before the start of trading that spending increased 0.4% in January, while personal income added 0.3%. Economists were expecting smaller increases of 0.2%.
But the rise in consumption went to cover inflation. The same report showed that the price index for personal consumption expenditures rose 0.4%, while the core index, which excludes the costs of food and energy, climbed 0.3%.
In other economic news, the National Association of Purchasing Managers-Chicago reported after the opening that its index of regional business conditions fell to its lowest level since December 2001, while the University of Michigan’s final figures for February consumer confidence showed the worst result since 1992.
One of the biggest losers in today’s sell-off was general merchandise retailer Duckwall-ALCO Stores, Inc. (Nasdaq: DUCK), which slumped to a new 52-week low on news of a disappointing 2008 earnings forecast.
Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:
• Momenta Pharmaceuticals, Inc. (MNTA), up 29% to $10.16 on news of an analyst upgrade.
• China Finance Online Co. (JRJC), up 25% to $21.22 on news of a fourth-quarter profit above analysts’ expectations.
• Morton’s Restaurant Group, Inc. (MRT), up 11% to $7.75 on news of a $6 million stock repurchase plan.
• AbitibiBowater Inc. (ABH), down 29% to $10.35 on news of a fourth-quarter loss.
• R.H. Donnelley Corp. (RHD), down 24% to $7.09 following news that one of its division heads is stepping down and an analyst downgrade.
• Big 5 Sporting Goods Corp. (BGFV), down 22% to $9.28 on news of a decline in fourth-quarter profit.
• R.H. Donnelley Corp. (RHD) 22,681,400 shares traded.
• China Finance Online Co. (JRJC) 6,844,600 shares traded.
• AbitibiBowater Inc. (ABH) 5,092,400 shares traded.
The day saw 90 small-cap stocks set 52-week lows, while 2 small caps established a 52-week high.
