Factory orders lower stocks
April 4 (SmallCapInvestor.com) – Small cap stocks are lower this morning following news of weaker-than-expected factory orders. Shares of the Greenbrier Companies (NYSE: GBX) fell after the company reported a loss in the second quarter, while Packeteer, Inc. (Nasdaq: PKTR) lowered its first quarter revenue projection.
At 10:36 AM the Russell 2000 was down 2.29 points, or 0.28 percent, to 809.48. The Dow Jones Industrial Average has gained 5.85 points, or 0.05 percent, to 12,516.15.
Shares of telecommunications company Packeteer, Inc. dropped on news of a downwardly revised first quarter revenue projection. Cupertino, Calif.-based Packeteer now expects to bring in between $31 million to $33 million in the first quarter ended March 31, 2007, it said before the opening bell. Analysts were expecting revenue of $43.12 million, according to Thomson Financial. Packeteer’s stock fell $3.43, or 27.29%, to $9.14.
Bio-nanotech company Psivida Ltd. (Nasdaq: PSDV) has signed an exclusive research and license agreement with industry heavyweight Pfizer, the company said before the start of trading. Psivida will receive as much as $155 million in development and sales-related milestone payments from Pfizer while the two companies combine their efforts to create better eye treatments. Shares are up $0.54, or 26.47%, to $2.58.
The Greenbrier Companies is down following a report of poor results for the fiscal second quarter ended February 28, 2007. Net loss was $6.1 million, or $0.38 per share for the quarter, compared with net earnings of $8.6 million, or $0.54 per share a year earlier, the Lake Oswego, Ore.-based supplier of railroad transportation equipment said before today’s opening. Wall Street was looking for earnings of $0.54 per share. Shares lost $4.07, or 15.23%, to $22.65.
New orders at U.S. factories in February missed the mark, rising 1% instead of the expected gain of 1.8%, because of weaker demand for machinery and metals, the Commerce Department reported after the start of trading. Factory orders fell 5.7% in January.
Orders for machinery declined 1% while orders for primary metals dropped 3.8%. Electrical equipment and appliances orders fell 5.8%.
The price of oil is near $64 a barrel following news Iran's President Mahmoud Ahmadinejad will pardon the 15 British naval personnel captured two weeks ago. The standoff had created tensions between the U.K. and oil producer Iran.
By Alex Alexandrov
