Dow higher, Russell lower
April 19 (SmallCapInvestor.com) –The Dow is tiptoeing to another record close in midday trading on news of strong earnings, while the Russell 2000 is languishing in negative territory. Among small caps, shares of Labor Ready, Inc. (NYSE: LRW) are up on news of better-than-expected first quarter earnings, while Decorize, Inc. (AMEX: DCZ) faces delisting.
At 1:47 PM the Russell 2000 had lost 2.21 points, or 0.27 percent, to 822.17. The Dow Jones Industrial Average was up 15.35 points, or 0.12 percent, to 12,819.19.
Shares of Mississauga, Ore.-based energy solutions developer Hydrogenics Corporation (Nasdaq: HYGS) moved up slightly following news it has received nine new orders for a total value of approximately $1 million. The orders came from nine new customers and one repeat customer interested in deploying Hydrogenics’ HyPM(R) Fuel Cell Power Module. Shares are up $0.02, or 1.99%, to $0.95.
Home furnishings manufacturer Decorize, Inc. is down $0.17, or 35.42%, to $0.31 following news it received a delisting notice from the American Stock Exchange on April 12. AMEX intends to file a delisting application because the company is not in compliance with a requirement that it have a minimum stockholder equity of $2 million, Decorize said after Wednesday’s close. It is in the process of applying to be listed on the Over the Counter Bulletin Board (OTCBB).
Shares of manual labor recruiting company Labor Ready are posting solid gains on news first-quarter earnings outpaced analysts’ expectations. Quarterly revenue was $290 million, a 2.3% decrease from $297 million in the first quarter of 2006, Tacoma, Wash.-based Labor Ready said before the opening bell. However, earnings were $0.21 per share, above analysts’ projections of $0.16 per share. The stock is up $4.30, or 23.63%, to $22.50.
Bank of America Corporation (NYSE: BAC) reported a 5.4% rise in first quarter income, despite difficulties with revenue growth due to a decline in profits at three of its main business lines.
Contributing to the upbeat news from the financial sector is Merrill Lynch & Co. Inc., (NYSE: MER) the world’s largest brokerage, which said its profit increased 31% in the first quarter due to higher fees from underwriting stocks and managing corporate takeovers.
Pharmaceutical giant Merck & Co., Inc. (NYSE: MRK) is also seeing strong earnings, saying its first-quarter profit climbed 12% due primarily to strong demand for anti-cholesterol pills.
