Small caps remain bullish
The Russell 2000 (NYSE:IWM) is posting solid gains in the last hour of trading. At 3:08 p.m. ET, the small-cap index was up 10.34 points, or 1.48%, to 708.72. The Dow Jones Industrial Average had advanced 105.20 points, or 0.84%, to 12,632.46.
Small-cap stocks are holding on to healthy gains after initially moving into positive territory shortly before 10 a.m. ET, as investors reacted to news before the opening that Wal-Mart Stores, Inc. (NYSE:WMT) has raised its earnings estimates for the first quarter of fiscal 2009.
In economic news, the U.S. Commerce Department reported before the start of trading that the trade deficit unexpectedly widened in February. The gap between imports and exports rose 5.7% to $62.3 billion from an upwardly revised $59 billion in March. Wall Street was expecting to see the gap narrow.
“Imports grew faster than exports — that was a surprise,” said Arun Raha, vice president of economic research and consulting for the North American operations of reinsurance company Swiss Re, in an email. “It just means that trade will provide less of a cushion to the economic downturn in the first quarter than previously expected.”
Companies offering printing services are currently among the best-performing industry groups. Among the winners is small-cap brand image company Schawk Inc. (NYSE:SGK).
Meanwhile, shares of InnerWorkings Inc. (Nasdaq:INWK), which provides print procurement solutions, are bucking the trend, down 2%.
