Russell 2000 looks up
The small cap index is gaining ground this morning, as investors react to news of stronger-than-expected U.S. productivity growth. In specific small cap action, shares of Hansen Medical, Inc. (Nasdaq: HNSN) got a lift on news U.S. regulators cleared the company’s medical mapping technology, while Town Sports International Holdings, Inc. (Nasdaq: CLUB) reported a quarterly net loss.
At 11:19 a.m. ET the Russell 2000 had added 1.40 points, or 0.17 percent, to 829.86. The Dow Jones Industrial Average was up 15.76 points, or 0.12 percent, to 13,227.64.
Shares of Warrington, Pa.-based Discovery Laboratories, Inc. (Nasdaq: DSCO) are trading lower on news the biotechnology company reported a net loss in the first quarter. The net loss for the period ended March 31 was $8.3 million, or $0.12 per share, compared with a net loss of $15.8 million, or $0.26 per share, in the first quarter of 2006. However, current assets declined to $20.75 million from $27 million a year earlier. Shares are down $0.25, or 7%, to $3.27.
Mountain View, Calif.-based Hansen Medical, Inc. has received clearance from the U.S. Food and Drug Administration for the commercialization of its product for the mapping of catheters, the company said before the opening bell. The Sensei™ Robotic Catheter System and Artisan™ is a robotic platform that can map catheters in hard-to-reach places within heart. A catheter is a small tube that is inserted into the body to allow for the drainage or injection of fluids, or to provide access by surgical equipment. Hansen said it is initiating sales. Shares are up $4.18, or 22%, to $23.07.
Shares of New York-based Town Sports International Holdings, Inc. are down $2.22, or 10%, to $20.46 on news the fitness club operator posted a net loss in the first quarter. The net loss for the three-month period ended March 31 was $3.8 million, compared with a net loss of $0.14 million in the first quarter of 2006, the company reported after Thursday’s close. Town sports said it will open as many as 15 clubs by the end of the year and expects annual revenue of $475 million to $480 million. Analysts are forecasting revenue of $480.5 million.
U.S. productivity growth rose more than expected in March, the Labor Department announced before the opening bell. Growth was 1.7% at an annualized rate, just above economists’ expectations of a 1.6% increase. Productivity in the final quarter of 2006 grew 2.1%.
Labor costs grew 0.6%, significantly below the rise of 6.2% posted in the last three months of 2006.
Those figures suggest inflation will not rise as a result of the tight U.S. labor market.
