A day of records
The Russell 2000 and the Dow moved up to new record closes while the Federal Reserve voted to keep interest rates steady and hinted it won’t make adjustments soon. In small cap action, news of a net loss lowered shares of Hoku Scientific, Inc. (Nasdaq: HOKU), whereas Maidenform Brands, Inc. (NYSE: MFB) reported a profit and raised its stock price.
The Russell 2000 gained 3.87 points, or 0.47 percent, to 834.77, above its previous record close of 833.80, set on April 26. The Dow Jones Industrial Average also set a new record, adding 53.80 points, or 0.40 percent, to 13,362.87.
Intimate apparel manufacturer Maidenform Brands, Inc. posted an increase in first-quarter profit. The net income for the period ended March 31 was $7.0 million, a 12.9% increase compared with net income of $6.2 million during the first three months of 2006, the Bayonne, N.J.-based company said after Tuesday’s close. That’s earnings of $0.29 per share, compared with $0.26 per share a year earlier. Wall Street had projected net income of $0.28 per share. The stock moved up $1.18, or 6%, to $21.57.
Shares of Hoku Scientific, Inc. were among the losers today on news the energy company lost money in fiscal 2007. The net loss for the fiscal year ended March 30 was $2.4 million, or $0.14 per share, compared with a net income of $1.3 million, or $0.09 per share, Kapolei, Hawaii-based Hoku said after Tuesday’s close. Analysts were expecting a net loss of $0.07 per share. The stock lost $0.63, or 13%, to close at $4.41.
Richmond, Va.-based James River Coal Company (Nasdaq: JRCC) added to its stock value despite news of a first-quarter loss. The net loss for the first three months of 2007 was $7.3 million, or $0.46 per share, compared with a net profit of $1.4 million, or $0.08 per share during the first quarter 2006, the coal mine operator said after Tuesday’s close. However, two analysts polled by Thomson Financial projected the company to lose $0.64 per share. The stock closed at $11.29, up $1.59, or 16%.
Today’s eagerly awaited economic news was that the U.S. central bank refused to change the federal funds rate of 5.25% for the seventh straight session while hinting an increase was not on the horizon.
At 2:15 p.m. ET the Federal Open Market Committee announced that it had unanimously voted to keep interest rates steady. The Fed said that economic growth was modest and reiterated its position that inflation remains its primary concern.
Tellingly, policy-makers dropped their previous mention of possible rate increases in the future, saying only that adjustments will have to be made based on future data.
