Russell 2000 rebounds
April 12 (SmallCapInvestor.com) – Stocks overcame early losses to end the day with a win as investors shrugged off a rise in the price of oil and a disappointing retail sales outlook. In small cap action, Apogee Enterprise, Inc. (Nasdaq: APOG) raised its fiscal year earnings projection, while shares of Acorda Therapeutics Inc. (Nasdaq: ACOR) rose after a positive analyst rating.
The Russell 2000 added 6.81 points, or 0.84 percent, to 815.05. The Dow Jones Industrial Average rose 68.34 points, or 0.55 percent, to 12,552.96. The Dow has ended the nine of the last ten sessions with a win.
Shares of Apogee Enterprise gained $1.97, or 9.13%, to $23.55 following news the designer and manufacturer of window glass raised its earnings outlook for fiscal year 2007. Earnings are forecast at between $1.27 per share and $1.37 per share, up from a previous estimate of between $1.20 per share and $1.30 per share, the Minneapolis, Minn.-based company said after Wednesday’s close. Wall Street was looking for earnings of $1.27 per share. The company attributed the improved expectations to strength in its architectural segment.
Interphase Corporation (Nasdaq: INPH), a maker of products for telecommunications equipment manufacturers, reduced its stock price after it said it expects a first-quarter loss. The Plano, Texas-based company expects a quarterly loss of $1.7 million to $2.2 million on revenue of $5 million to $5.1 million, it said after Thursday’s close. Analysts polled by Thomson Financial were expecting earnings of $0.01 per share on revenue of $8.35 million. Interphase attributed the loss to a slowdown in the telecom industry. Shares lost $3.32, or 24.30%, to close at $10.34.
Shares of Acorda Therapeutics ended the day among the winners after analyst Deutsche Bank inaugurated coverage of the company with a “Buy” rating and a target price of $29 a share. Acorda’s treatment for improved walking ability shows potential, Deutsche Bank said after Wednesday’s close. Shares rose $2.55, or 12.03%, to $23.74.
Retailers warned before the opening bell today that an increase in March sales was most likely due to an early Easter holiday and sales will probably fall or stay flat in April. On April 10 the International Council of Shopping Centers said sales at U.S. stores open for at least a year rose 4% in March.
The price of oil almost reached $64 a barrel after the International Energy Agency said the oil cartel OPEC has reduced supplies to a two-year low. The Organization of Petroleum Exporting Countries cut its March output of oil by 165,000 barrels to 30.1 million barrels a day, the IEA said before the opening bell.
By Alex Alexandrov
