Small caps trading higher
The Russell 2000 (NYSE:IWM) has established a presence in positive territory despite bearish economic news. At 3:03 p.m. ET, the small-cap index had climbed 3.39 points, or 0.57%, to 705.27. The Dow Jones Industrial Average (INDU) was up 16.69 points, or 0.13%, to 12,565.33.
Small-cap stocks are in the green this afternoon despite disappointing economic news.
The Conference Board reported after the opening that its index of consumer confidence fell to a level of 64.5 in March from an upwardly revised level of 76.4 in February. That’s the lowest level in five years.
The business organization also said that its expectations index is now at a 35-year low, while consumer’s assessment of present-day business conditions also weakened.
The news raised fears that the U.S. economy is in recession, as consumption comprises about 70% of gross domestic product.
Elsewhere, the Standard & Poor’s/Case-Shiller home price index released before the opening showed that prices of existing U.S. single-family homes fell in January.
The Russell 2000 was volatile until shortly after 12 p.m. ET, when the index settled on an upward trajectory.
Among the small-cap winners is New York-based interconnection services provider FiberNet Telecom Group, Inc. (Nasdaq:FTGX), which announced before the opening that its fourth-quarter net loss narrowed.
Meanwhile, shares of big and tall men’s apparel retailer Casual Male Retail Group, Inc. (Nasdaq:CMRG) are higher despite a decline in fourth-quarter profit. The Canton, Mass.-based company also announced before the opening that it expects 2008 earnings within Wall Street’s expectations.
