Strong gain for Russell 2000
The Russell 2000 (NYSE: IWM) posted a stunning rise on news the U.S. Federal Reserve has moved to increase liquidity. The small-cap index jumped 29.84 points, or 4.63%, its largest increase this year, to 673.81. The Dow Jones Industrial Average (INDU) added 416.66 points, or 3.55%, to 12,156.81.
On a year-to-date basis, the Russell 2000 has declined 12.04%, while the Dow is down 8.35% and the S&P 500 has let go 10.06%.
Stocks soared out of the gate on news before the start of trading that the U.S. Federal Reserve and four other central banks will make expanded loans of cash and securities to financial institutions in an effort to ease the credit squeeze and keep the economy growing.
The Fed said it will lend up to $200 billion of Treasury securities to primary dealers for a term of 28 days. The U.S. central bank usually makes such loans overnight.
The Russell 2000 opened strong and bobbled in the green until halfway through the session, when it settled on an upward trajectory.
The only major economic news today, which bullish investors generally disregarded, was that the U.S. trade deficit increased a less-than-expected 0.6% to $58.20 billion in January from December’s downwardly revised $57.86 billion.
Here are the day’s biggest percentage gainers and losers, along with top volume leaders, among companies with a market cap between $100 million and $750 million:
• Duff & Phelps Corp. (DUF), up 40% to $15.20 on news it beat analysts’ fourth-quarter profit expectations.
• Global Sources Ltd. (GSOL), up 34% to $14.36 on news that fourth-quarter earnings fell but beat analysts’ projections.
• Systemax Inc. (SYX), up 32% to $11.85.
• China Fire & Security Group, Inc. (CFSG), down 38% to $5.45.
• Superior Well Services, Inc. (SWSI), down 23% to $19.32 on news of a decline in fourth-quarter profit.
• Spartech Corp. (SEH), down 19% to $11.06 on news of a fiscal first-quarter loss.
• Anworth Mortgage Asset Corp. (ANH) 5,807,100 shares traded.
• Hovnanian Enterprises, Inc. (HOV) 5,199,500 shares traded.
• Capstead Mortgage Corp. (CMO) 4,807,400 shares traded.
The day saw 43 small-cap stocks set 52-week lows, while seven small caps established a 52-week high.
