Russell 2000 loses steam
The Russell 2000 is below the flat line in midday trading, while the Dow is on track for a new record close. Among small caps, shares of Sigma Designs, Inc. (Nasdaq: SIGM) are sagging on news of an analyst downgrade, while positive analyst coverage has boosted Bankrate, Inc. (Nasdaq: RATE).
At 2:32 p.m. ET the Russell 2000 had lost 5.82 points, or 0.70 percent, to 823.88. The Dow Jones Industrial Average was up 16.01 points, or 0.12 percent, to 13,136.95.
Shares of Israeli software company Cimatron Ltd. (Nasdaq: CIMT) are trading higher on news its new application is being exhibited at a trade fair in Germany. The CimatronE DieDesign, which helps quickly produce complex designs and was released several months ago, will be showcased at the upcoming BlechExpo, Cimatron said before the opening bell. The company said it hopes the exhibition will generate more business. Shares are up $0.35, or 10.54%, to $3.70.
Milpitas, Calif.-based Sigma Designs, Inc. has lost altitude due to an analyst downgrade. American Technology Research downgraded the maker of digital media processors to “sell” from “buy” after the start of trading on concerns of increased competition in the Chinese market. The target price has been reduced to $19 from $28. Shares are down $2.58, or 9.64%, to $24.18.
Shares of Bankrate, Inc., which operates the website Bankrate.com, are up $2.32, or 6.04%, to $40.75. Analyst American Technology Research issued a research note indicating that the North Palm Beach, Fla.-based company is likely to experience growth as the year progresses, according to news reports after the opening bell. Coverage has been inaugurated with a “Buy” rating and a target price of $48.
The price of oil has eased slightly to the mid-$66 a barrel range as news of a foiled terrorist plan in Saudi Arabia on Friday recedes from memory.
Elsewhere, consumer electronics retailer Radio Shack Corporation (NYSE: RSH) reported first-quarter net earnings that beat analysts’ expectations due to aggressive cost cutting. However, revenues fell as store closings continued.
