Gains across the board
April 20 (SmallCapInvestor.com) – The major U.S. indices rallied today following news of stronger-than-expected financial results from giants such as Google Inc. (Nasdaq: GOOG). Among small caps, shares of EpiCept Corporation (Nasdaq: EPCT) soared on news of an effective drug against brain cancer, while a rise in same-store sales lifted Factory Card & Party Outlet Corp. (Nasdaq: FCPO).
The Russell 2000 snapped a three-day losing streak, rising 9.54 points, or 1.16 percent, to 828.86, after setting a record high of 831.44 on Monday. The Dow Jones Industrial Average added 153.35 points, or 1.20 percent, to 12,961.98, its third consecutive record close. The Dow has increased 4.7% so far in April.
Shares of EpiCept Corporation surged on news that the pharmaceutical company’s drug Azixa for the treatment of primary and secondary brain tumors was shown to be effective in clinical studies. Aziha shuts off the blood flow to the tumor, thus killing it, Englewood Cliffs, N.J.-based EpiCept said before the opening bell. Shares added $1.67, or 73.25%, to close at $3.95.
Oakland, Calif.-based Zhone Technologies, Inc. (Nasdaq: ZHNE), a maker of communications network equipment, lost ground on news of a loss in the first quarter. Net loss for the quarter ended March 31 was $4.8 million, or $0.03 per share, compared with $3.9 million, or $0.03 per share in the first three months of 2006, the company said after Thursday’s close. That’s in line with analysts’ expectations. Quarterly revenue was $43.1 million, below the $52.7 million the company brought in the same period a year earlier. Shares dropped $0.09, or 6.08%, to $1.39.
Shares of Naperville, Ill.-based specialty retailer Factory Card & Party Outlet Corp. climbed $2.67, or 30.41%, to $11.45, on news of an increase in same-store sales. Comparable store net sales for the fourth quarter ended Feb. 3 rose 1.6% from the same period a year earlier, the company reported before the opening bell. Overall quarterly net sales were $63.8 million, a 9.6% increase compared with $58.3 million in the fourth quarter of the previous year.
News after the Thursday’s close that Internet giant Google Inc. increased its first-quarter profit 69% to $1 billion ignited a rally that was only fueled by strong financial results from other heavyweights.
Heavy-equipment manufacturer Caterpillar Inc. (NYSE: CAT) raised its profit forecast for 2007, while credit card-issuing company American Express (NYSE: AXP) said its first-quarter net income was $0.87 per share, compared with $0.69 per share a year earlier.
