Russell 2000 opens strongest
April 16 (SmallCapInvestor.com) – The Russell 2000 is leading the rally sparked by news of stronger-than-expected retail sales and the takeover of Sallie Mae. Among small caps, shares of Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW) are up on news of a deal with a Chinese auto manufacturer, while Alfacell Corporation (Nasdaq: ACEL) is higher following reports its drug inhibits cancer growth.
At 10:30 AM the Russell 2000 was up 6.46 points, or 0.79 percent, to 825.84. The Dow Jones Industrial Average had gained 67.20 points, or 0.53 percent, to 12,679.33.
Shares of biopharmaceutical company Alfacell Corporation are higher following news the company’s drug ONCONASE significantly inhibits tumor growth of non-small cell lung cancer and breast cancer cells. Bloomfield, N.J.-based Alfacell presented data at the annual meeting of the American Association for Cancer Research that suggests important potential clinical uses of ONCONASE, the company said before the opening bell. Shares are up $0.18, or 7.19%, to $2.67.
Shares of Security With Advanced Technology Inc. (Nasdaq: SWAT) are sagging on news the company is being sued by PepperBall Technologies for patent infringement of four patents related to non-lethal weapons. According to a press release before the opening bell, PepperBall also alleges the breach of two agreements between it and Loveland, Calif.-based Security, which provides digital video recording systems for security purposes. Shares are down $0.58, or 14.16%, to $3.54.
Irvine, Calif.-based Quantum Fuel Systems Technologies Worldwide is up on news it has signed a memorandum of understanding to establish a joint venture this year with a major Chinese automaker. In an announcement before the opening bell, Quantum did not provide the name of the automaker but said the deal is for the development and commercialization of hybrid and alternative fuel vehicles, manufacture of gaseous fuel components, and integration of advanced propulsion systems. Shares are up $0.17, or 13.82%, to $1.40.
March retail sales increased more than expected, the Commerce Department reported before the opening bell. Sales rose 0.7%, beating economists’ projections of an increase of 0.5%. Retail sales in February increased 0.5%. Excluding auto and parts dealers, sales of all retailers rose 0.8%, in line with economists’ expectations.
The data indicate that the American consumer remains strong. Higher wages and more employment opportunities are helping Americans deal with falling home prices and an increase in the price of gasoline.
In buyout news, education lender Sallie Mae will be bought by two private-investment funds and banks J.P. Morgan Chase and Bank of America for $25 billion, according to an announcement before the start of trading.
