Russell 2000 joins the party
The small cap index is taking part in the bull market, as U.S. stocks move up after news of an unexpected rise in consumer confidence. Among specific small caps, shares of Perma-Fix Environmental Services, Inc. (Nasdaq: PESI) are gaining on news the company might sell one of its divisions, while AVANT Immunotherapeutics, Inc. (Nasdaq: AVAN) said that its typhoid fever drug showed positive clinical trial results.
At 11:37 a.m. ET the Russell 2000 had added 1.13 points, or 0.14%, to 816.77. The Dow Jones Industrial Average was up 50.47 points, or 0.37%, to 13,527.19.
Shares of Perma-Fix Environmental Services, Inc. are trading higher on news the Atlanta, Fla.-based company is considering selling all or a part of its industrial segment. “While the industrial segment may hold untapped potential, we believe the nuclear segment represents the true long-term growth driver for our business,” CEO Louis F. Centofanti said before the opening bell. Perma-Fix reported that it has already received offers. Shares are up $0.22, or 8%, to $3.02.
SonoSite, Inc. (Nasdaq: SONO), which develops hand-carried ultrasound for medical use, has been downgraded by Next Generation Equity Research, LLC to “neutral” from “buy.” The downgrade comes after news that the Bothell, Wash.-based company is being sued by giant General Electric, Co. (NYSE: GE). According to news reports on Thursday, GE has filed a complaint in federal court in Madison, Wis. claiming that some of SonoSite’s products use GE's inventions without permission. Sonosite could potentially be blocked from using the technology and be forced to pay compensation. The stock is down $1.99, or 7%, to $27.77.
Shares of AVANT Immunotherapeutics, Inc. are gaining on news the Needham, Mass.-based has announced positive preliminary results from a clinical trial of its typhoid fever vaccine candidate Ty800. Researchers found that more than 90% of the patients who took the oral vaccine had an immune response, the company said before the start of trading. A Phase II trial is planned for mid-2007. Shares are up $0.15, or 17%, to $1.05.
U.S. consumer confidence is up for the first time in 2007, the University of Michigan’s index showed after the start of trading. The index increased to 88.7 in May from 87.1 in April. Economists were expecting a drop of 0.9 points to 86.2.
