Russell 2000 dives
The Russell 2000 lost nearly two percent today, while investors struggled to make sense of conflicting economic data. In small cap action, a drop in fourth-quarter net income lowered shares of Comarco, Inc. (Nasdaq: CMRO), while Sterling Financial Corporation (Nasdaq: SLFI) said it will revise its recent financial statements.
The Russell 2000 lost 15.13 points, or 1.82 percent, to 814.57, reflecting the biggest percentage loss among the major indices. The Dow Jones Industrial Average lost 58.03 points, or 0.44 percent, to 13,062.91.
Lancaster, Pa.-based financial holding company Sterling Financial Corporation said before the opening that it expects to be restating financial statements for the years 2004 through 2006 and is postponing its 2007 annual shareholder meeting as a result of an internal investigation. On April 19th, Sterling announced that it had received information suggesting irregularities in certain financing contracts in Equipment Finance LLC, one of its financial services group companies. Shares lost $4.07, or 19.64%, to $16.65.
Shares of fabless semiconductor company Silicon Motion Technology Corporation (Nasdaq: SIMO) gained on news the Taiwanese company has completed its previously announced acquisition of Future Communications IC Inc. for a total of $90 million. Silicon Motion has agreed to pay FCI shareholders an additional $12 million in cash if certain financial performance conditions are met, it said before the opening bell. Shares added $1.51, or 6.64%, to $24.26.
Shares of Lake Forest, Calif.-based wireless test solutions provider Comarco, Inc. ended the day in negative territory, down $0.42, or 6.03%, to $6.51 on news of a weak fiscal fourth quarter. The net income for the quarter ended Jan. 31 was $2.8 million or $0.38 per share, down from $6.9 million, or $0.93 per share in the fourth quarter of fiscal 2006, Comarco said before the start of trading. The company attributed the fall to a winding down of business with partner SwissQual.
Personal spending in the U.S. rose less-than-expected in March, the Labor Department said before the start of trading. The 0.3% rise is below expectations of an increase of 0.5%. When adjusted for price increases, consumer spending actually declined 0.2%.
However, personal income in March increased 0.7%, outpacing expectations of a rise of 0.6%.
Total construction spending in March increased 0.2% to an annualized pace of $1.188 trillion, the Commerce Department said after the opening bell. Economists were looking for a rise of 0.3%.
In business news, shares of consumer electronics retailer Radio Shack Corporation (NYSE: RSH) moved up on news first-quarter net earnings beat analysts’ expectations due to lower costs.
