Small caps rise in defiance
The Russell 2000 (NYSE: IWM) is posting a gain despite news of a surprising jump in January producer prices.
At 10:14 a.m. ET, the small-cap index was up 3.78 points, or 0.53%, to 714.24. The Dow Jones Industrial Average (INDU) was down 10.10 points, or 0.08%, to 12,560.12.
Small-cap stocks are in the green despite news that producer prices increased 1% in January, according to the U.S. Labor Department before the start of trading. That’s more than the expected increase of 0.4% and follows a 0.3% decline in December.
The core index, which excludes the cost of food and energy, added 0.4%. Economists were projecting an increase of 0.2% following a similar rise in December.
The numbers, which measure the selling prices received by domestic producers for their output, show that inflation pressures remain despite the current economic slowdown.
Shares of Gevity HR Inc. (Nasdaq: GVHR) are higher on news that the Bradenton, Fla.-based employment management solutions company reported fourth-quarter revenue that beat analysts’ forecasts.
Similarly, Atlanta-based PRG-Schultz International, Inc. (Nasdaq: PRGX), which provides audit services, is seeing its stock rise on news that it swung to a fourth-quarter net income of $13.1 million, or $1.04 per share, compared with a net loss of $21.1 million, or $3.32 per share, a year earlier.
However, shares of Movado Group, Inc. (NYSE: MOV) are falling on news that the distributor and retailer of watches and jewelry lowered its fiscal 2008 net sales guidance.
