Russell creeps higher on Dow coattails
The Russell 2000 followed the Dow into positive territory as the major U.S. indices gained following news of a stronger-than-expected rise in labor productivity. Among small caps, Axcelis Technologies, Inc. (Nasdaq: ACLS) reported quarterly profit that fell short of expectations, while shares of PGT, Inc. (Nasdaq: PGTI) got a boost on news the company was profitable in the first quarter.
The Russell 2000 added 0.41 points, or 0.05 percent, to 828.87, its third consecutive day of gains. The Dow Jones Industrial Average closed in record territory for the third day on a row, adding 29.50 points, or 0.22 percent, to 13,241.38.
Shares of Bloomfield, Colo.-based Sirenza Microdevices, Inc. (Nasdaq: SMDI) ended the day higher, adding $1.76, or 19%, to $10.92. After Wednesday’s close the supplier of radio frequency components announced earnings for the quarter ended March 31 were $0.12 per share, above analysts’ projected earnings of $0.10 per share. CIBC World Markets responded by upgrading Sirenza’s shares to “Sector outperform” from “Sector perform.”
Axcelis Technologies, Inc., which makes parts used in the manufacturing of semiconductors, reported after Wednesday’s close that its first-quarter profit missed the mark. The net income for the quarter ended March 31 was $2.7 million, or $0.03 per share, compared with net income of $0.5 million, or $0.01 per share during the same period of 2006. Analysts were looking for the Beverly, Mass-based company to post earnings of $0.04 per share. The stock fell $1.56, or 19%, to close at $6.64.
Shares of North Venice, Fla.-based PGT, Inc. got a boost on news the manufacturer of impact-resistant windows and doors eked out a profit in the first quarter. The net income for the period ended March 31 was $0.8 million, compared with a loss of $14.1 million in the first quarter of 2006, the company said after Wednesday’s close. That translates to positive earnings of $0.03 per share, compared with a loss of $0.89 a year ago. Shares added $1.35, or 13%, to $11.85.
U.S. productivity grew more than expected during the first quarter of 2007, the Labor Department said before market open. Productivity rose 1.7% on an annualized basis, beating analysts’ projections of a rise of 1.6%.
The Labor Department also said that U.S. jobless claims fell to 305,000 for the week ended April 28, a decline of 21,000 on a seasonally adjusted basis. Analysts were expecting claims to increase by 1,000.
Stocks began the day flat following news that Detroit-based auto giant General Motors Corp. (NYSE: GM) reported a sharp decline in quarterly profit after Thursday’s close. First quarter earnings without items were $94 million, or $0.17 per share, below analysts’ expected earnings of $0.87 per share.
