Bulls like Russell 2000
The Russell 2000 index is the strongest performer among the major indices, after news of corporate deal-making and slow U.S. GDP growth. At 11:24 a.m. ET the Russell 2000 had added 2.06 points, or 0.24%, to 845.41. The Dow Jones Industrial Average was up 7.97 points, or 0.06%, to 13,641.05.
Shares of Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW) are rising on news the maker of packaged fuel systems has received a contract by Force Protection, Inc. (Nasdaq: FRPT) to provide engineering design and production support for its Mine Resistant Ambush Protected (MRAP) military vehicles. The initial efforts under this contract include prototype vehicle builds and manufacturing process development, Irvine, Calif.-based Quantum said before the start of trading. Shares are up $0.28, or 19%, to $1.74.
San Diego-based Cypress Bioscience, Inc. (Nasdaq: CYPB), a maker of treatments for disorders of the central nervous system, announced before the opening bell that an underwritten public offering of 4.7 million shares of its common stock will be priced at $15.50 per share. The proceeds will be used to acquire, in-license or invest in similar products and companies, the company said. Shares are down $0.92, or 6%, to $15.39.
AVANIR Pharmaceuticals (Nasdaq: AVNR) has received marketing approval from the U.S. Food and Drug Administration for an updated of its antipsychotic drug FazaClo. The new bottled version will be available in pharmacies shortly, the Aliso Viejo, Calif.-based company said before market open. Shares added $0.32, or 10%, to $3.54.
The U.S. economy expanded at an annual rate of 0.6% during the first three months of 2007, according to preliminary data released by the Commerce Department before the opening bell. That’s the worst reading since the fourth quarter of 2002, when the economy grew at a rate of just 0.2%.
In other economic news, the Labor Department said that jobless claims dropped 4,000 to 310,000 during the week ended May 26.
In corporate news, Charlotte, N.C.-based bank Wachovia Corp. (NYSE: WB) said it will buy brokerage firm A.G. Edwards Inc. (NYSE: AGE) for $6.8 billion in cash and stock, creating the second largest retail brokerage company in the United States.
