Stocks down after drop in China
April 19 (SmallCapInvestor.com) – Stocks are trading lower this morning following a drop in the Shanghai stock market and a smaller-than-expected fall in U.S. jobless claims. In small cap action, news of an expected loss in the first quarter lowered shares of Power-One Inc. (Nasdaq: PWER) and TVI Corporation (Nasdaq: TVIN).
At 10:40 AM the Russell 2000 was down 5.42 points, or 0.66 percent, to 818.96. The Dow Jones Industrial Average had lost 23.73 points, or 0.19 percent, to 12,780.11.
Shares of Power-One Inc., which makes power conversion products used in electronic equipment, are down following news the company expects to report a first quarter loss. Revenue for the quarter ended March 31, 2007, will be approximately $124 million for a net loss of $0.14 per share, Camarillo, Calif.-based Power-One said after Wednesday’s close. The company attributed the loss to problems in its North American operations. Analysts were looking for earnings of $0.01 per share. Shares are down $0.70, or 12.77%, to $4.78.
Canadian oil and gas explorer Ivanhoe Energy Inc. (Nasdaq: IVAN) is an early morning winner following an announcement before the opening bell that it has partnered with Japan’s INPEX CORPORATION to jointly develop a heavy oil field in Iraq. Shares are up $0.13, or 5.60%, to $2.45.
Shares of Glenn Dale, Md.-based TVI Corporation are sagging following news of an expected net loss in the first quarter of 2007. Net loss will be between $0.07 per share and $0.09 per share, compared with net income of $0.04 per share a year earlier, TVI said before the opening bell. Wall Street was expecting the supplier of first-responder products to break even. Shares are down $0.17, or 12.23%, to $1.22.
The Shanghai Composite Index lost 4.52% on Thursday on fears that red-hot economic growth will lead the government to increase interest rates to prevent the economy from overheating. The Chinese economy grew 11.1% on an annualized basis in the first quarter of 2007, the country’s statistics bureau reported today.
Seasonally adjusted jobless claims fell 4,000 to 339,000 in the week ended April 14, the U.S. Labor Department said before the opening bell. Economists were expecting a decline of 22,000.
