Small caps slide down
The Russell 2000 (NYSE: IWM) and the other major U.S. indices are sliding into negative territory on news of a decline in Citigroup’s earnings.
At 10:13 a.m. ET, the small-cap index had lost 5.20 points, or 0.62%, to 835.97. The Dow Jones Industrial Average (INDU) had shed 47.48 points, or 0.34%, to 14,045.60.
With no major economic news coming out today, investors are focusing on mergers, acquisitions and corporate earnings. Stocks began the day in the green but quickly surrendered those gains.
Dominating the headlines is news that Citigroup Inc. (NYSE: C) suffered a 57% drop in its third-quarter profit. The largest U.S. bank reported before that opening that its net income was $2.38 billion, or $0.47 per share, compared with $5.51 billion, or $1.10 a share, during the same quarter a year earlier. However, the quarterly results were above analysts’ forecast of earnings of $0.44 per share, according to a poll by Thomson Financial.
The New York-based financial giant blamed losses from subprime and leveraged loans, fixed-income trading and its U.S. consumer business for the decline in earnings.
In other business news, industrial and consumer products manufacturer Danaher Corp. (NYSE: DHR) announced that it will buy measurement equipment maker Tektronix Inc. (NYSE: TEK) for $2.85 billion.
That comes to a price of $38 per share, 34% above Beaverton, Ore.-based Tektronix’s closing price of $28.34 on Friday. The deal is expected to wrap up in the fourth quarter of 2007.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• ChemGenex Pharmaceuticals Ltd. (CXSP), up 14% to $2.10.
• Keithley Instruments Inc. (KEI), up 12% to $1.25 on news of an analyst upgrade.
• Fuel Tech Inc. (FTEK), up 11% to $3.
Biggest percentage losers:
• HSW International Inc. (HSWI), down 17% to $1.69.
• PRIMEDIA Inc. (PRM), down 15% to $2.03 on news of a lowered 2007 forecast.
• Vital Images Inc. (VTAL), down 9% to $1.98.
