Again…Dow up, Russell 2000 down
The Dow gained despite news of disappointing economic data, while the Russell 2000 fell for the second day. Among small caps, shares of II-VI Incorporated (Nasdaq: IIVI) dropped due to an earnings forecast that missed expectations, while news of a partnership with Boeing raised shares of iRobot Corporation (Nasdaq: IRBT).
The Russell 2000 lost 1.19 points, or 0.14 percent, to 826.36. The Dow Jones Industrial Average set a new record close, adding 34.54 points, or 0.27 percent, to 12,953.94.
Shares of London, England-based neuroscience company Amarin Corporation plc (Nasdaq: AMRN) sank, losing $2.95, or 78.04%, to close at $0.83, on news of an unsuccessful drug trial. Data from two Phase III clinical trials of the drug Miraxion, designed to treat Huntington’s disease, showed no statistically significant difference when compared with a placebo, Amarin said before the opening bell.
Burlington, Mass.-based iRobot Corporation got a boost following news it’s partnering with giant Boeing Co. (NYSE: BA) to create a small unmanned ground vehicle. The vehicle, called SUGV Early, will provide military, civil and commercial users real-time intelligence capabilities, iRobot said after Monday’s close. The SUGV Early will be a smaller, lighter version of the iRobot PackBot currently used to disarms explosive devices in Iraq and Afghanistan. It is expected to be available in 2008. Shares added $0.27, or 1.80%, to $15.27.
Shares of Saxonburg, Pa.-based high-technology materials maker II-VI Inc. ended the day among the losers on news the company’s fourth-quarter earnings forecast missed Wall Street’s projections. Earnings for the fourth fiscal quarter ending June 30, 2007, are forecast between $0.30 per share and $0.33 per share, on revenue of $67.5 million to $69.5 million, II-VI said before the opening bell. That’s below analysts’ expectations of earnings of $0.36 on revenue of $73.6 million. Shares closed at $29.06, down $7.02, or 19.46%.
The day began on a cautionary note following a report that showed sales of existing U.S. homes declined sharply in March. Annualized March sales were 6.12 million units, a drop of 8.4% from February’s pace of 6.68 million units, the National Association of Retailers said shortly after market open. Economists were expecting March sales of 6.45 million.
Also, U.S. consumer confidence fell in April, according to data released after the start of trading. The Conference Board said its index of consumer confidence fell to104.0 in April compared with 108.2 in March. Analysts were looking for an April reading of 105.
