Russell 2000 wins big
The Russell 2000 index added more than 10 points, or 1.3%, as U.S. stocks rallied on news of economic data that makes a future interest rate hike less likely. In small cap action, Crown Media Holdings, Inc. (Nasdaq: CRWN) narrowed its quarterly net loss, while MathStar, Inc. (Nasdaq: MATH) announced a public stock offering.
The Russell 2000 added 10.91 points, or 1.33 percent, to 829.54. The Dow Jones Industrial Average gained 111.09 points, or 0.84 percent, to 13,326.22.
Shares of MathStar, Inc. were among the winners today following news the Hillsboro, Ore.-based fabless semiconductor company proposed a public stock offering. MathStar intends to offer $25 million of its common stock in an underwritten public offering, it said after Thursday’s close. MDB Capital Group, LLC is acting as the lead manager for the offering, which is to close in mid-June 2007. The stock climbed $0.30, or 19%, to close at $1.86.
Williams Controls, Inc. (Nasdaq: WMCO), which manufactures electronic throttle and pneumatic control systems for heavy trucks, shifted into a lower gear on news of a profit decline. The net income for the second quarter of fiscal 2007 ended March 31 was $2.05 million, or $0.27 per share, compared with a net income of $2.44 million, or $0.32 per diluted share, for the corresponding quarter in fiscal 2006, the Portland, Ore.-based company said before the opening bell. That’s below Wall Street’s projected earnings of $0.31 per share. CEO Patrick W. Cavanagh said that the down-turn in the North American truck market will continue to negatively impact Williams Controls during the remainder of the year. Shares lost $1.47, or 8%, to $16.25.
Shares of Crown Media Holdings, Inc. moved up $0.10, or 2%, to close at $6.51, following news that the Studio City, Calif.-based company narrowed its quarterly loss. The net loss for the quarter ended March 31 was $40.2 million, or $0.38 per share, compared with a net loss of $47.1 million, or $0.45 per share, in the same period a year earlier. Analysts were expecting a net loss of $0.46 per share. Net revenue rose 19% to $53.6 million, from $45.0 million during the first three months of 2006. That’s in line with expectations.
Core producer prices stayed flat in April while overall producer prices rose 0.7%, the U.S. Labor Department said before the opening bell. Economists were projecting the core producer price index, which excludes the costs of food and energy, to rise 0.2%.
In other economic news, the Commerce Department reported that U.S. retail sales declined 0.2% in April. Sales excluding auto and parts dealers were flat.
The easing of pricing pressures and sluggish retail sales suggests inflation will remain tame, making a future hike in the federal funds rate by the U.S. Federal Reserve less likely. On Wednesday the Fed left the rate unchanged at 5.25%.
