Small caps rebound
The Russell 2000 (NYSE: IWM) has rebounded from its earlier losses and is posting a solid gain.
At 11:31 a.m. ET, the small-cap index had advanced 6.21 points, or 0.92%, to 680.02. The Dow Jones Industrial Average (INDU) was up 120.25 points, or 0.99%, to 12,277.06.
Small-cap stocks started rising sharply after hitting a session low at about 10:10 a.m. ET. Shortly before 11 a.m. ET the index pierced the flat line and continuing gaining ground.
The bullish development comes without any evident cause.
In economic news, the Mortgage Bankers Association reported before the start of trading that U.S. mortgage applications fell for the week ended March 7. The trade association’s index of mortgage loan application volume fell 1.9% as interest rates climbed to their highest level this year and lowered demand for home loans.
Shares of ExlService Holdings, Inc. (Nasdaq: EXLS), which facilitates outsourcing, are among the gainers on news after the close on Tuesday that New York-based company doubled its fourth-quarter net income.
Meanwhile, the U.S. Food and Drug Administration announced before the start of trading that it is accelerating approval for a late-stage clinical trial of a prostate cancer drug developer by Dendreon Corp. (Nasdaq: DNDN). Shares of the Seattle-based biotechnology company are trading higher.
