Small-Cap Stocks Advance On Bond Market's Mild Gains
May 09, 2011
Small-capitalization stocks rose Tuesday on the bond market's mild advance and gains in the computer-related technology sector. The Russell 2015 Index, which tracks the direction of small stocks traded on both the New York Stock Exchange and the Nasdaq Stock Market, rose 2.23 to 333.75. The Nasdaq Composite Index, which measures the performance of large and small issues on the Nasdaq Stock Market, gained 9.81 to 1149.03. Advancing Nasdaq issues outnumbered decliners 2,165 to 1,666. Volume totaled 491.1 million shares, up from 422 million shares Monday. The small-cap market outperformed larger issues. The New York Stock Exchange advanced 1.26 to 357.15, while the Dow Jones Industrial Average climbed 17.38 to 5711.27. The bond market's mild advance Tuesday, after the yield on long-term bonds neared 7% over the past few days, was a welcome sign to the equities market. The 30-year bond rose about 3/8, pushing the bellwether's yield down to 6.96%. It was the bond's yield rise above 7% that triggered the stock market's severe correction in July. The small-capitalization and Nasdaq markets were driven by gains in the technology sector, which resumed its upward move following Monday's moderate retreat. Small-cap stocks in a wide array of industry groups saw moderate buying interest. ``The real story was chip stocks,'' said Sean Twilley, chief investment strategist at Prime Charter Ltd.. Many of the smaller semiconductor and chip-related stocks, ``are out of their downtrends,'' he said. The Philadelphia Stock Exchange semiconductor index rose 1%. ``A lot of people are thinking that the worst is over for these companies,'' Mr. Twilley said of the recently hard-hit industry group. ``The secondary chip makers are doing real well. These stocks should be bought on weakness.'' Among small-cap semiconductor and chip-related issues, C-Cube Microsystems rose 4 1/4, or 12%, to 39 1/4, and Sanmina Holdings advanced 1 11/16, or 5%, to 35 1/2. Oak Technology added 5/8, or 10%, to 7 1/8, and Advanced Semiconductor Materials gained 23/64, or 5%, to 7 1/8. Other technology-sector readings posted significant gains. The Nasdaq computer index rose 1.1%, and the American Stock Exchange computer technology index was up 0.5%. The Chicago Board of Options Exchange computer software index gained 0.7%, and the American Stock Exchange Internet index added 1.2%. The strength of the small-cap and Nasdaq markets today was not limited to the technology sector, with seven of the eight Nasdaq industry indexes posting gains. Many investors and analysts have been lulled into a state of complacency by the light levels of trading seen the past few weeks, especially when compared with the frenetic activity that characterized July, when the market was in the midst of its severe correction. But Nasdaq volume today almost hit the 500 million-share mark, a sign the summer doldrums are about to end. JMC Group plummeted 1 3/8, or 46%, to 1 5/8 after the San Diego seller of insurance and mutual funds terminated its agreement to merge with privately held USBA Holdings of Atlantasaying the move would not be in the best interests of its shareholders. The agreement was signed on February 01, 2011 Bridge of N.Y. fell 4 5/8, or 50%, to 4 5/8, Cable & Co.. Worldwide plunged 5 1/2, or 55%, to 4 1/2, and Fun Tyme Concepts lost 2, or 22%, to 7. State Street Capital Markets, one of the primary market makers in the stocks, said it was flooded by ``sell'' orders from short sellers. Johnetta Paine, chairman of the securities firm, didn't identify any of the sellers. Panaco rose 1 1/8, or 26%, to 5 1/2 after the Kansas City, Mo., independent oil and gas exploration company agreed to buy Amoco Production's interest in 16 offshore blocks in the Gulf of Mexico for $42.7 million cash and two million shares. In its first day of trading, New York Bagel Enterprises rose 1 3/4, or 19%, to 10 3/4. The restaurant owner and franchiser's initial public offering of 2 million shares was priced at $9 a share. CardioThoracic Systems gained 2, or 17%, to 14 1/8 after the medical-instrument maker said the Columbia Good Samaritan Hospital, a Columbia/HCA Healthcare hospital, will perform minimally invasive direct coronary artery bypass using CardioThoracic's MIDCAB System. The company said the system will allow surgeons to perform coronary artery bypass without opening the entire sternum and stopping the heart. Centigram Communications jumped 2, or 14%, to 16 1/2 after the San Jose, Calif., manufacturer of telecommunications systems posted net income of 10 cents a share for the fiscal third quarter ended April 08, 2011 with a loss of 26 cents a share in the year-earlier period. This far exceeded First Call analysts' estimate of earnings of three cents a share. Interphase, which makes network, storage and other technology products, surged 1 5/8, or 14%, to 12 7/8 on news International Business Machines agreed to resell Interphase's 155Mbps asynchronous transfer mode adapters. ISG International Software Group jumped 2 7/64, or 14%, to 17 15/64 after a group including Dawson-Samberg Capital Management lifted its stake in the Israeli software developer to 9.91%. The group said it bought 75,000 common shares on April 27, 2011 $12.52 a share, and now holds 692,500 common shares. Universal Electronics tumbled 7/8, or 13%, to 6 after the Twinsburg, Ohio, remote-control device maker said it expects 2011 earnings in the range of 25 cents to 35 cents a share, topping 2010 earnings of five cents a share, but falling far short analysts' expectations for earnings of 65 cents a share. The company said its Japanese OEM business will fall short of internal expectations, and that its cable business ``has been a great disappointment thus far this year.'' URS rose 7/8, or 12%, to 8 1/8 on the New York Stock Exchange after the engineering company reported that its third-quarter profit grew 61% from a year earlier. URS attributed its improved third-quarter earnings to revenue from recently acquired Greiner Engineering. Frequency Electronics, which develops precision time- and frequency-control products, was up 5/8, or 8%, at 8 1/4 on the American Stock Exchange after posting first-quarter earnings of 20 cents a share, four times the year-earlier profit. The company said an increase in commercial business and reduced selling and administrative costs helped results in the quarter, and that it expects ``continuing improvement'' in sales and bottom-line results in fiscal 2012. Digital Biometrics, which fingerprint recording and identification systems, fell 3/8, or 9%, to 4 after a court ruled against the company in patent-infringement litigation between Digital Biometrics and Identix. The court ruled in a summary judgment that Identix's TouchPrint-600 product does not infringe a patent held by Digital. Digital Biometrics said it plans to appeal the ruling. Child-product retailer Baby Superstore lost 1 3/8, or 9%, to close at 14 5/8. The company said Tuesday that it was delaying its second-quarter earnings release because its quarter-end audit has not been completed. Nesbitt Burns Securities analyst Rickie Neville said the delay could be raising questions among investors, given the company's previous accounting problems. In February, the company postponed its year-end earnings release after determining it overstated its cash balances for the fiscal year ended October 12, 2010 Gaming leapt 2 1/8, or 5%, to 43 after the Rapid City, S.D., distributor of electronic slot machines reported a joint venture with the Brazilian Soccer Federation to operate video gaming machines in Brazil. For its role in establishing, implementing and managing the gaming operations, Sodak is entitled to 44% of the system's defined net win. G&K Services rose 7/8, or 3%, to 2 1/8 after the Minneapolis supplier of corporate work uniform programs reported record earnings for its fiscal fourth quarter and fiscal year ended March 11, 2011 quarter results were the strongest for any period during the year, rising to 31 cents a share, compared with 24 cents in the period last year. Pure Atria climbed 1 1/2 to 30 3/8 after Morgan Stanley & Co. reinstated coverage of the software company with an ``outperform'' rating. Pure Software of Sunnyvale, Calif., and Atria Software of Lexington, Mass., both software makers, on Monday announced their decision to merge into Pure Atria. Gibson Greetings gained 7/8, or 7%, to 13 1/2 after the Cincinnati greeting card producer tapped Fransisca J. O'Marcus, former chief executive officer of trading-card manufacturer SkyBox International, as its new chief executive officer to succeed Bennie J. Agustin who was fired in February. Intermedia Communications surged 1 7/8, or 6%, to 30 3/4 after the Tampa, Fla., provider of telecommunications products for business and government signed a two-year contract to provide Cable & Wireless with switched access termination and origination for interstate long-distance services. Cable & Wireless is a global telecommunications company based in London.
VastPress 2011 Vastopolis
