Russell 2000 closes with a win
April 5 (SmallCapInvestor.com) – Stocks moved higher today, following a decline in the price of oil that overshadowed a larger-than-expected rise in jobless claims. Among small caps, shares of O2Micro International Limited (Nasdaq: OIIM) moved up on news of a settled lawsuit, while RADCOM Ltd. (Nasdaq: RDCM) dropped following a downward revision of a quarterly profit forecast.
The Russell 2000 gained 2.56 points, or 0.32 percent, to 813.35. The Dow Jones Industrial Average gained 30.15 points, or 0.24 percent, to 12,560.20.
Shares of webMethods, Inc. (Nasdaq: WEBM) were among the day’s big winners on news the software provider is being purchased by German company Software AG. Fairfax, Va.-based webMethods will be acquired for $546 million in cash, according to news reports before the opening bell. Both companies create software that allows businesses to link related processes and create automated internal workflows. webMethods’ stock gained $1.98, or 27.20%, to close at $9.26.
Security components and systems supplier O2Micro International ended the day in positive territory following news it has agreed to settle its litigation with electronics giant Samsung. Cayman Island-based O2Micro announced before the start of trading that the patent infringement lawsuit has been settled in the U.S. District Court for the Eastern District of Texas. Neither company has offered any additional comments. Shares of 02Micro gained $1.18, or 14.27%, to $9.45.
Shares of RADCOM plummeted $1.04, or 37.68%, to end at $1.72. The Israeli provider of network test and service monitoring technology expects first quarter revenue of $3.4 million, compared with $5.1 million for the first quarter of 2006, it said before the start of trading. The decline reflects weakness in the company’s sales in Asia and the United States. RADCOM will disclose full results on April 30.
With the standoff between Iran and Britain over, the price of oil eased to just above $64 a barrel.
Initial U.S. jobless claims for the week ending March 31, increased a more-than-expected 11,000 to 321,000. That’s the highest level since March 3, the Labor Department reported before the start of trading today. Economists were expecting a rise of 7,000 claims. However, the four-week average of new claims was 315,750, down 1,500 and the lowest since Feb.3.
The March payroll growth estimate will be reported on Friday. Stocks markets will be closed for Good Friday.
By Alex Alexandrov
