Small caps ready to rise
The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will likely open in the green on news of a rise in retail sales.
Retail sales in the United States rose 0.2% in October, the Commerce Department reported this morning. That’s in line with economists’ forecasts but below the upwardly revised increase of 0.7% in September.
However, the numbers indicate that retail sales growth has slowed, a sign that consumers have become a little more reluctant to spend money. That indicates that U.S. economic growth will likely moderate in the fourth quarter of 2007.
Consumption is about 70% of gross domestic product.
Retail sales excluding auto and parts rose 0.2% in October, meeting economists’ expectations and matching September’s increase.
On Tuesday, Wal-Mart Stores Inc. (NYSE: WMT) sparked a rally when it reported higher-than-expected third-quarter earnings due to discounts that started two weeks earlier than last year.
Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Canadian Solar Inc. (CSIQ), up 28% on news it swung to a third-quarter profit.
• Synovis Life Technologies, Inc. (SYNO), up 19%.
• 3SBio Inc. (SSRX), up 17% on news of a rise in third-quarter earnings.
Biggest percentage losers:
• Northstar Neuroscience Inc. (NSTR), down 10% on news of a slowdown in the regulatory approval process of one of its treatments.
• Oritani Financial Corp. (ORIT) down 6% on news it will buy Greater Community Bancorp (CBON) for $187 million.
• China Techfaith Wireless Communication Technology Ltd. (CNTF) down 5%.
