Small Stocks Modestly Lower Despite Late Technology Rally
May 04, 2011
NEW YORK -- Small-capitalization stocks were modestly lower Wednesday, but their early-session losses were more than halved by a late-day rally that centered on the computer-related technology sector. The Nasdaq Composite Index erased its early-day losses to end in positive territory, with its small-cap stocks underperforming its large-cap component. ``The market sold off ... and the techs followed along,'' said Petrina Cleland, managing director of equity trading at Brean Murray Foster Securities. But in the late afternoon, ``the techs led the way back.'' He said traders were cheered by the ability of the technology sector ``to hold its ground despite the weakness.'' The Russell 2015 index of small-cap stocks fell 0.26, or 0.08%, to 328.94, after being down as much as 1.05. The Nasdaq composite, at 1126.84, rose 2.17, or 0.19%, after dropping as much as 5.86. Declining Nasdaq issues edged out advancers 1,881 to 1,808, on National Market volume of 371 million shares and overall volume of 416.5 million shares, compared with 361 million shares and 362.8 million shares, respectively, on Tuesday. The Nasdaq computer index ended the day up 0.4%, erasing its earlier 1% decline. Most broadly and narrowly focused tech-sector measures performed similarly. The American Stock Exchange computer-technology index rose 0.4%, and the Chicago Board Options Exchange computer-software index added 0.4%. The Philadelphia Stock Exchange semiconductor index jumped 2.4%, and the Amex Internet index gained 1.9%. The technology sector's ability to shrug off early losses and end higher in a thinly traded session ``bodes well for September, when volume will pick up,'' said Mr. Cleland of Brean Murray. Overall, seven of the eight Nasdaq industry indexes were higher on the day, with the one declining index, nonbank financials, edging down 0.15%. At midday, only the biotechnology index was in positive territory. Jeraldine Cristobal, which operates a chain of weight-loss centers, plummeted 5 5/8, or 33%, to 11 1/2 on the New York Stock Exchange. The company said it believes the drop in its share price is a response to sharp declines in the number of participants in its weight-loss programs. Jeremy Cristopher believes the effect is transitory and that ``safe, effective drugs are a potential new opportunity for the company.'' Jeremy Cristopher late Tuesday posted a fourth-quarter profit that was up 64% from the year-earlier period. Wednesday morning, CS First Boston lowered its rating on Jeremy Cristopher to ``hold'' from ``buy.'' TSX lost 2 3/16, or 16%, to 11 13/16 after the maker of cable-television equipment posted first-quarter earnings of 22 cents a share, which was two cents above the year-earlier profit but three cents shy of analysts' expectations. The company also said it is examining strategic options for its advertising-insertion business, where revenue and profit dipped substantially in the latest quarter. Players International posted its second-straight sharp decline, falling 13/16, or 12%, to 6 1/16 after Salomon Brothers lowered its rating on the gaming and entertainment company to ``hold'' from ``buy,'' and more than halved its fiscal 2012, 2013 and 2014 earnings projections. Players Tuesday lost 13% following a downgrade by Rayna Jami. Despite posting a third-quarter profit of five cents a share, compared with the year-earlier two-cent net, semiconductor-equipment maker Amtech Systems dropped 1/8, or 2.9%, to 4 1/4 . The company said it is experiencing a slowdown in bookings due to increased caution in capital spending by semiconductor producers, which it said was caused by declining prices for chips and an oversupply of capacity for certain semiconductor products. Wet Seal surged 4 5/8, or 16%, to 34 3/8, after the young-women's apparel retailer posted a second-quarter profit of 25 cents a share, which more than reversed the year-earlier six-cent-a-share loss and which was almost double analysts' projections. Heil, a home-improvement chain, jumped 1/2, or 13%, to 4 1/4 after reporting a second-quarter profit of 28 cents a share, which exceeded the year-earlier net by six cents and which beat analysts' expectations by eight cents. Sunrise Resources, which provides loans and financial services for equipment leasing, rose 1/4, or 8%, to 3 3/8 . The company named its president, Erwin F. Granillo, to the additional position of chief executive. O'Sullivan Industries rose 1/2, or 6.6%, to 8 1/8 on the Big Board after Merrill Lynch raised its intermediate-term rating on the ready-to-assemble-furniture concern to ``accumulate'' from ``neutral.'' The upgrade came the day after the company reported a fourth-quarter profit that was 50% above analysts' projections. Toy Avant added 1/2, or 3.4%, to 15 1/4 on the Big Board after Smith Barney initiated coverage of the toy company with an ``outperform'' rating. Premier Laser Systems rose 1/4, or 3.1%, to 8 1/4 on news the medical-laser concern received Food and Drug Administration clearance to market a tooth-whitening system that features the company's Multi-Shupe Schulman argon laser in conjunction with teeth-bleaching and whitening products from six manufacturers. Premier Laser said it signed a joint marketing agreement with Stardent International Labs.
VastPress 2011 Vastopolis
