Indices slipping as oil rises
Stocks are moving down while the price of oil rises due to election tensions in Nigeria. In small-cap action, shares of Union Bankshares Corporation (Nasdaq: UBSH) are down after an analyst’s target price reduction, while Community Shores Bank Corporation (Nasdaq: CSHB) reported lower quarterly earnings.
At 2:34 PM the Russell 2000 had lost 2.11 points, or 0.25 percent, to 826.75. The Dow Jones Industrial Average was down 29.74 points, or 0.23 percent, to 12,932.24.
Shares of Bowling Green, Va.-based multi-bank holding company Union Bankshares Corporation are trading lower following a target price reduction by analyst Robert W. Baird. First-quarter 2007 earnings per share short of expectations led Robert W. Baird to reiterate its “neutral” rating and reduce the target price to $25 from $29, Baird said before the opening bell. On Friday Union Bankshares reported that first-quarter earnings declined due to higher costs. Shares are down $1.77, or 7.14%, to $23.02.
Houston-based gaming company Nevada Gold & Casinos, Inc. (AMEX: UWN) has gained ground after news it has agreed to sell its 22.8% membership interest in American Racing and Entertainment, LLC to its partners. The company will receive $4.3 million from its partners Southern Tier Acquisition II LLC and Oneida Entertainment, LLC in three payments, Nevada Gold & Casinos said before the start of trading. American Racing owns the Tioga Downs Racetrack and the Vernon Downs Racetrack, both in New York state. Shares have added $0.18, or 8.18%, to $2.38.
Shares of Muskegon, Minn.-based Community Shores Bank Corporation are down $0.20, or 1.71%, to $11.50 on news of a decline in quarterly earnings due to increased costs related to the bank’s expansion activities. Net income for the first quarter 2007 was $228,600, or $0.15 per share, compared with $363,600, or $0.25 per share in the first quarter of 2006, Muskegon's only locally-headquartered independent community banking organization said before the opening bell.
In economic news, the price of oil shot up more than a dollar to the mid-$65 a barrel range after international monitors condemned the results of Nigeria’s election over the weekend. European Union observers said the election could not be considered credible and Nigeria’s political opposition rejected the results.
