Merger rumors raise stocks
Wall Street is bullish this morning amid reports Microsoft Corp. is looking to acquire Yahoo! Inc. and despite news of slow U.S. job growth. In small cap action, shares of Shutterfly, Inc. (Nasdaq: SFLY) got a lift on news of a narrowed quarterly loss, while Voxware, Inc. (Nasdaq: VOXW) regained listing compliance.
At 11:14 a.m. ET the Russell 2000 had added 2.60 points, or 0.31 percent, to 831.47. The Dow Jones Industrial Average was up 30.06 points, or 0.23 percent, to 13,271.44.
Shares of voice-based technology solutions provider Voxware, Inc. are adding value on news the Lawrenceville, N.J.-based company is again in compliance with listing requirements. Voxware said after the close on Thursday that it has received a letter from The Nasdaq Stock Market Inc. saying that it has regained a minimum stockholders’ equity of $2,500,000. The stock has added $0.15, or 3%, to $5.87.
Shares of Lauderdale Lakes, Fla.-based insurance holding company 21st Century Holding Company (Nasdaq: TCHC) are tumbling, down $8.57, or 43%, to $11.42, on news of a sharp drop in quarterly profit. Net income for the period ended March 31 was $0.84 million, or $0.11 per share, compared with net income of $6 million, or $0.88 per share in the first three months of 2006, 21st Century reported after Thursday’s close. The company blamed a decline in prepaid reinsurance premiums for the drop in profit. Analyst estimates were unavailable.
Shutterfly, Inc., which manages the online photos website shutterfly.com, has narrowed its net loss, the Redwood City, Calif.-based company said after Thursday’s close. The net less for the quarter ended March 31 was $1.1 million, or $0.04 per share, compared with a net loss of $1.6 million, or $0.41 per share a year earlier. The improvement is due to sharp increases in year-over-year revenues and orders. The stock is trading at $18.05, up $1.52, or 9%.
Nonfarm payrolls increased 88,000 in April, the Labor Department said before the opening bell. That’s the slowest rate in more than two years and below economists’ expectations of 110,000 new jobs. Construction companies shed 11,000 jobs while retailers let go of an additional 26,000.
The unemployment rate increased to 4.5% from 4.4%.
In business news, shares of Yahoo! Inc. (Nasdaq: YHOO) have gained 18% following a report this morning by the New York Post that computer giant Microsoft Corp. (Nasdaq: MSFT) is looking to acquire the struggling search engine.
