Stocks dropping
U.S. stocks are trading lower following Federal Reserve Chairman Bernanke’s words on subprime loans and a drop in leading economic indicators. Among small caps, shares of OPNET Technologies, Inc. (Nasdaq: OPNT) fell on news that quarterly profit missed the mark, while Flow International Corp.’s (Nasdaq: FLOW) stock price declined after news the company will continue to be independent.
At 11:32 a.m. ET the Russell 2000 had lost 4.75 points, or 0.58%, to 815.45. The Dow Jones Industrial Average was down 9.26 points, or 0.07%, to 13,478.27.
Shares of OPNET Technologies, Inc. are sliding following news that the Bethesda, Md.-based software company reported quarterly numbers that missed expectations. Earnings for the fiscal fourth quarter ended March 31 were $0.07 per share, compared with $0.05 per share for the same quarter in the prior fiscal year, OPNET announced before the opening bell. Six analysts polled by Thomson Financial were looking for net income of $0.09 per share. The stock has lost $1.82, or 15%, to $10.18.
Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) is considering putting itself up for sale, the Irving, Texas-based television broadcasting company said before the market open. Nexstar’s board has brought on Goldman, Sachs & Co. to assist in reviewing strategic alternatives and said it will not comment publicly until the process is complete. Shares are up $2.25, or 21%, to $13.14.
Shares of Flow International Corp., a manufacturer of ultrahigh-pressure water pumps and systems, are down $0.52, or 4%, to $12.10, following news before the start of trading that the Kent, Wash.-based company has decided against going private. The board completed a review of strategic alternatives and decided its best option was to stay independent and continue executing its current development plan. Flow International also announced that it is close to finding a replacement for retiring CEO Stephen Light.
Problems in the housing market have lingered longer than expected but will have a limited impact on the broader economy, Fed Chairman Ben Bernanke said after the start of trading. However, Bernanke did say that delinquent loans and the struggling housing market are partially responsible for slow U.S. economic growth.
The index of leading economic indicators unexpectedly fell 0.5% in April, the Conference Board said before the opening bell. Economists were looking for the index to remain unchanged after a 0.6% rise in March.
