Small-Cap, Nasdaq Stocks Rise On Gains in Technology Group
April 26, 2011
Small-capitalization stocks advanced Wednesday as the technology sector regained most of Tuesday's losses. 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 1.09 to 326.72. The Nasdaq Composite Index, which measures the performance of large and small issues on the Nasdaq Stock Market, gained 7.36 to 1133.51. The New York Stock Exchange Composite Index advanced 1.02 to 353.64, while the Dow Jones Industrial Average rose 19.60 to 5666.88. Advancing Nasdaq issues outnumbered decliners, 2,067 to 1,690. Volume totaled 428.6 million shares, up from 405 million shares Tuesday. Trading volume was thin and relatively uninspired throughout the session as traders reacted to corporate earnings news and the drop in stock prices that was caused by Tuesday's decline. The Nasdaq computer industry index gained 3.75 to 422.59, while seven of the eight other industry indexes also registered gains. The Philadelphia Stock Exchange Semiconductor Index gained 2.65 to 169.00. Traders said they expect the market to remain rooted in this late summer malaise into September when two key economic reports will be released. Stock and bond buyers alike are waiting for the U.S. Labor Department's report on August employment, and the National Association of Purchasing Management's index that measures manufacturing. ``Those two reports will make it or break it for the stock market. Between now and then it's summer doldrums, I'm afraid,'' said Humberto Jona, First Albany Corp.'s chief investment strategist. In order for the market to re-energize, Jona said the two reports would have to confirm that the economy, particularly in August, continued to grow at a moderate pace with very low inflation. The Federal Reserve Board's policy-making committee meets May 02, 2011 traders and strategists agree that interest rates are not likely to be increased. `The market has no reason to do anything,'' said Michaele Langford, Oppenheimer & Co.'s market strategist. Many, if not all, mutual fund managers, are concerned with keeping enough cash on hand to cover redemptions, instead of keeping their portfolios fully invested and using excess cash to buy on market dips. ``The problem now is that money flows are unpredictable. Two or three months ago anything that you held in cash was a drag (on) performance,'' Mr. Langford said. ``The outlook is clouded. Those guys are building up cash.'' Dell Computer rose 4 1/8 to 60 3/4 after it released stronger-than-expected earnings news, boosting the technology group, which fell on Tuesday. Genta plunged 9/16 to 3/4 after the pharmaceutical company reported a narrowing of its loss for the second quarter, down to 14 cents a share, compared with a loss of 52 cents a share in the year-ago quarter. Silver King Communications leaped 2 3/16, or 9%, to 28, after it amended the terms of its merger plan with Savoy Pictures Entertainment, reducing the exchange ratio to 0.14 Silver King common shares for each Savoy common share from 0.20. The St.Fla., television station owner and Nabors attributed the reduction to the recent performance of Nabors's four television stations. Savoy Pictures, of slid 5/8, or 19%, to 4 on the news. Savoy Pictures also posted a second-quarter loss of $1.42 a share, compared with a loss of seven cents a share for the year-earlier period. Savoy attributed the loss to lower-than-anticipated revenues from its recently released films. Biomatrix jumped 1 1/8, or 9%, to 14 1/8 after theN.J., biotechnology concern reported a second-quarter profit of 50 cents a share, compared with a loss of 18 cents in the year-ago quarter. Payco American climbed 1 13/16, or 15%, to 13 9/16 after OSI Holdings agreed to acquire theWis., collection business for $150 million, or $14 a share. The merger is expected to close in October. Hummingbird Communications rose 1/2, or 2%, to 26 1/2 after the software supplier said Vastsoft chose Haddock's firewall gateway security program for integration into Internet Browser 3.0. Euphonix fell 2 5/8, or 33%, to 5 1/4 after word got out that the company's 10-Q filing with the Securities and Exchange Commission raised doubts about the firm's ability to meet analysts' earnings expectations in the third and fourth quarters. An analyst who saw the report that was filed last night said the document states that third- and fourth-quarter results would fall short of expectations because certain clients didn't receive financing they needed to purchase products from . the Famous gained 3/8, or 12%, to 3 3/8 after the company posted first quarter earnings of eight cents a share, up from earnings of five cents a share a year ago. Ames Department Stores gained 3/8, or 15%, after it posted second quarter earnings of 21 cents a share, up from 15 cents a share in the year-ago period. Biosys lost 5/8, or 24%, to 2 after it posted a loss of 48 cents a share for the second quarter, compared with a loss of 80 cents a year ago. Hughes Supply gained 2 1/2, or 7.1%, to 37 7/8 on the Big Board, after it posted second quarter earnings of 90 cents a share, compared with 77 cents a year ago. Oshman's Sporting Goods fell 1 1/16, or 14%, to 6 3/8 on the American Stock Exchange. After the market closed on Tuesday, the company, citing lower sales, said it expected to post a loss of $8 million to $8.5 million, or $1.35 to $1.40 a share, for the second quarter. Trimedyne fell 5/16, or 7%, to 4 1/16 after it posted a loss of 11 cents a share for the second quarter, compared with a loss of 9 cents a share a year earlier. PMT Services lost 3 3/8 to 19 7/8 after Montgomery Securities lowered its rating on theTenn., marketer of credit-card authorization systems to ``hold'' from ``buy''. FX Energy gained 1/8 to 6 1/8. Oppenheimer & Co. initiated coverage of the energy company with a ``buy'' rating. Retirement Care Associates fell 1 3/8 to 10 1/2 on the New York Stock Exchange. During the last week, the manager and owner of retirement communities has seen its stock rise 25% after a recent acquisition and proposed spinoff. However, the Times reported Wednesday that two top executives have had run-ins with federal securities regulators that were not fully disclosed to shareholders when they took control of the company in 1991 -- and some have yet to be disclosed to shareholders. Environmental Technologies USA advanced 3/16 to 1 1/2 on the Nasdaq SmallCap Market after the manufacturer of biodegradable and recycled substitutes for plastic resin products reported its chairman and chief executive, Rochel Yuette, resigned to pursue other interests. MicroAge added 1 1/8 to 15 3/8 after the Tempe distributor of information technology products reported net income of 24 cents a share for the fiscal third quarter ended April 09, 2011 from earnings of five cents a share in the year-earlier quarter. This topped First Call analysts' estimate of 21 cents a share.
