Sell-off on Wall Street
U.S. stocks dropped sharply today following news of ugly April retail sales. Among small caps, shares of Jupitermedia Corp. (Nasdaq: JUPM) lost on news of a quarterly net loss, while 24/7 Real Media, Inc. (Nasdaq: TFSM) is putting itself on the selling block.
The Russell 2000 lost 16.14 points, or 1.93 percent, to 818.63. The Dow Jones Industrial Average shed 147.74 points, or 1.11 percent, to 13,215.13, its biggest drop since March 13.
Shares of Jupitermedia Corp. ended the day among the losers, following news the digital images provider reported a loss in the first-quarter. The net loss for the quarter ended March 31 was $1 million, or $0.03 per share, compared with a net income of $9.2 million, or $0.25 per share, during the same period of 2006, the Darien, Conn.-based company said after Wednesday’s close. Six analysts surveyed by Thomson Financial expected the company to break even. Shares lost $0.99, or 14%, to close at $6.17.
24/7 Real Media, Inc. is considering selling itself, the digital marketing company said after Wednesday’s close. The New York-based company has hired Lehman Brothers as a financial adviser to assist in the process, it said before the start of trading. On Tuesday the New York Post reported that software giant Microsoft Corp. (Nasdaq: MSFT) is considering making a $1 billion bid for the company. Shares closed down $0.31, or 3%, to $10.79.
Shares of electronic components distributor Jaco Electronics, Inc. (Nasdaq: JACO) lost value following news of a loss in the quarter ended March 31. The net loss for the first three months of 2007 was $0.75 million, or $0.12 per share, compared with a net income of $0.08 million, or $0.01 per share, in the same period a year ago, the Hauppauge, N.Y.-based company said before the opening bell. Analyst estimates were unavailable. The stock declined $0.68, or 20%, to $2.73.
Stocks declined out of the gate today on news that U.S. retailers had their worst monthly same-store sales drop in history in April. Bentonville, Ark.-based Wal-Mart Stores Inc. (NYSE: WMT) reported a worse-than-expected 3.5% decline in same-store sales, while Minneapolis-based Target Corp. (NYSE: TGT) said that its April same-store sales declined 6.1%.
The retailers blamed the sharp declines on this year’s early Easter holiday and cold weather.
In economic news, the U.S. Commerce Department reported before the start of trading that the U.S. trade deficit increased to $63.9 billion due to higher oil imports.
