Tag Archives: Russell 2000

Small Cap Stocks Lead The Markets Higher

Size doesn’t matter when it comes to US stocks, because investors seem to prefer small companies over big ones in 2018.

That’s a sign of the continued strength of America’s economy as small-caps tend to move earlier than later stocks whether up or down.

The Russell 2000, an index that includes shares of mostly smaller US companies, is up nearly 7% this year and is trading at an all-time high this week.

The Dow and S&P 500, both of which are home for industry giants like Apple, Disney, Coca-Cola and Boeing are up just 1% and 2% respectively. They are both still trading about 5% below their record highs.

Why?

To start, many smaller businesses in the Russell 2000 are growing their profits at a faster rate than the giants of the Dow and S&P 500.

Earnings for the Russell 2000 companies are expected to increase more than 40% this year and another 23% in 2019. That’s much better than analysts’ forecasts of a 20% jump in earnings for S&P 500 companies this year and 10% next year.

We see this continuing throughout the rest of 2018. Investors would be wise to consider smaller stocks as they tend to move higher faster when things are going well and lead the overall markets.

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Dow Briefly Up 100 Points

Stocks traded higher today, helped by a risingoil prices, following the release of the Fed’s statement.

Federal Reserve  Chairwoman Janet Yellen said in a press conference following the statement release that policymakers have not concluded inflation has seen a significant, lasting uptick.

The Dow 30  briefly gained 100 points, with Chevron, Caterpillar and IBM among the top contributors to gains. Goldman Sachs was the greatest contributor to declines.

Coming Up Later This Week:

Thursday

Bank of England monetary policy announcement and minutes

Earnings: Tencent, Michaels Cos., Intl. Game Technology, Lands’ End, Adobe Systems

8:30 a.m.: Jobless claims

8:30 a.m.: Philly Fed business outlook survey

8:30 a.m.: Current account

10 a.m.: JOLTS

10 a.m.: Leading indicators

10:30 a.m.: Natural gas inventories

4:30 p.m.: Fed balance sheet/Money supply

Friday

Quadruple Witching

Earnings: Tiffany

9 a.m.: New York Fed President William Dudley speaks

10 a.m.: Consumer sentiment

10 a.m.: Atlanta Fed business inflation expectations

11 a.m.: Boston Fed President Eric Rosengren speaks

1 p.m.: Oil rig count

1:30 p.m.: St. Louis Fed President James Bullard

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Oil Drops, Stock Recover From Session Lows

U.S. equities traded in a wide range on Tuesday as U.S. oil prices seesawed and investors looked ahead to Fed Chair Janet Yellen’s testimony.

The small-cap/penny stock Russell 2000 index was lower by 1% midday.

WTI futures slipped 4.8 percent, or $1.45, to trade at $28.44 a barrel in choppy trading. Earlier, the International Energy Agency said that demand for oil will “ease back considerably” in 2016.

The S&P 500 dropped nearly 1 percent at the open, led lower by energy, before briefly turning positive.

The Nasdaq composite seesawed, opening down more than 1 percent, before reversing losses and gaining about 1 percent. The index sat lower in midday trading.

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Nasdaq Turns Positive for 2015

Stocks traded about 1% higher Monday, attempting to further a recent recovery from correction levels, as investors awaited earnings and concerns from Friday’s jobs report on the timing of a rate hike.

The Dow Jones industrial average gained more than 100 points.

The Nasdaq composite came back into positive territory for 2015. The Dow and S&P500 stayed in negative territory for the year so far.

All three major averages gained to come within 10 percent of their 52-week highs, out of correction territory. The small-cap Russell 2000 remained in correction mode, about 12 percent from its 52-week high.

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Russell 2000 Higher and at a Very Important Level

Small-Caps and penny stocks just turned positive as the Russell 2000 moved into the green just after noon. At the opening, the small stock index opened lower and continued lower before bouncing off its intra-day low just above 1,143.

It is now at 1,153 which is a critical point. If the Russell breaks above that price, there will be some support there. That will make it easier to move higher before it hits a significant technical and psychological resistance level near 1,200.

Russell 2000 on Yahoo! Finance

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