Stocks narrow early losses
U.S. stocks have recovered some of their early losses but are still trading in negative territory. In small cap action, Bronco Drilling Company, Inc. (Nasdaq: BRNC) missed earnings expectations, while Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) widened its quarterly net loss.
At 2:22 p.m. ET the Russell 2000 was down 2.42 points, or 0.29 percent, to 829.45. The Dow Jones Industrial Average has lost 10.89 points, or 0.08 percent, to 13,302.08.
Shares of Nastech Pharmaceutical Company Inc. are sagging after news the Bothell, Wash.-based company reported a wider quarterly loss. The net loss for the quarter ended March 31 was $11.5 million, or $0.47 per share, compared with a net loss of $7.8 million, or $0.38 per share, during the first three months of 2006, Nastech said after Monday’s close. The company said the wider loss is due to one time revenue recognition in 2006 of payments from giant Merck & Co., Inc. (NYSE: MRK), as well as higher spending due to headcount growth and increased expenses related to research and development projects and clinical trials. Shares are down $0.70, or 5%, to $12.91.
Shares of Harvey Electronics, Inc. (Nasdaq: HRVE) are up $0.58, or 35%, to $2.24, on news the Lyndhurst, N.J.-based company has agreed to buy retailer and custom installer of audio video systems Myer-Emco, Inc. The purchase will add Myer-Emco’s 10 stores in the Washington DC metropolitan area to Harvey’s existing network of nine stores in the New York metropolitan area, the company said before the market open. The monetary terms of the acquisition have not been disclosed.
Bronco Drilling Company, Inc. reported earnings that fell short of Wall Street’s expectations. Earnings for the quarter ended March 31 were $11.4 million, or $0.44 per share, compared with $11.3 million or $0.48 per share a year earlier, the Edmond, Okla.-based company said before the start of trading. That’s below Wall Street’s projected earnings of $0.53 per share. The stock is down $2.20, or 12%, to $16.81.
In economic news, the price of oil has increased about 50 cents to near $62 a barrel after militant raids on Nigeria’s oil facilities have reduced the country’s output by more than 25%. Nigeria is the biggest oil producer in Africa.
