Russell 2000 loses again
The Russell 2000 small cap index lost for the fourth time this week as the major U.S. indices dropped on news of mixed economic data. In specific small cap action, Opnext Inc. (Nasdaq: OPXT) fell on news its quarterly profit was short of expectations, while shares of Gerber Scientific, Inc. (NYSE: GRB) gained after the company raised its guidance.
The Russell 2000 lost 4.56 points, or 0.56%, to 815.64. The Dow Jones Industrial Average broke the 13,500 barrier in intraday trading but eventually shed 10.81 points, or 0.08%, to close at 13,476.72.
Shares of Eatontown, N.J.-based Opnext Inc. depreciated on news the optical modules and components manufacturer’s profit missed expectations. The net income for the first quarter ended March 31 was $1.5 million, or $0.03 per share, compared with a net loss of $2.8 million, or $0.05 per share, the company reported before the opening bell. Four analysts surveyed by Thomson Financial had projected earnings of $0.07 per share. The stock lost $1.48, or 12%, to close at $11.17.
Gerber Scientific, Inc. raised its guidance for the fourth quarter of fiscal 2007. The South Windsor, Conn.-based manufacturer of sign-making equipment expects that revenue for the quarter ended April 30 will be in the $153 - $155 million range, compared with the previous projection of $145 - $150 million, the company said after Wednesday’s close. Earnings per share should be in the $0.22 - $0.26 range, compared with previous guidance of $0.14 - $0.20. Wall Street is expecting Gerber Scientific to bring in $148.86 million and report earnings of $0.17 per share. Final financial results will be reported on June 21. The stock finished at $13.10, up $3.13, or 31%.
Shares of Greek Top Tankers, Inc. (Nasdaq: TOPT), a provider of seaborne transportation services, eked out a gain of $0.17, or 4%, to $5.02, after news it defied analysts’ expectations of a net loss. Results for the three months ended March 31 showed a net income of $0.95 million, or $0.03 per share, compared with a net income of $30.16 million, or $1.05 per share, for the first quarter of 2006, the company said before the market open. Analysts were expecting a net loss of $0.03 per share.
U.S. jobless claims declined 5,000 to 293,000 for the week ended March 12, the Labor Department said before the opening bell. Economists were expecting jobless claims to increase 18,000 to 315,000.
However, 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.
Elsewhere, Federal Reserve Chairman Ben Bernanke said today that problems in the housing market will have a limited impact on the broader economy, but bear responsibility for the slowdown in U.S. economic growth.
