Dow Jones Industrial Average rises above record
The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (.DJI) are rising fast following news of higher June sales at U.S. retailers. At 11:49 a.m. ET the Russell 2000 was up 8.81 points, or 1.05%, to 848.78. The Dow Jones Industrial Average had added 160.38 points, or 1.18%, to 13,738.25, beyond the June 4th record close of 13,676.32.
Shares of The Spectranetics Corp. (Nasdaq: SPNC) are rising on news the maker of medical devices has received approval from the U.S. Food and Drug Administration for one of its catheters. Regulators have approved the TURBO elite laser catheters, which are used for the treatment of problems arteries within the leg, the Colorado Springs, Colo.-based company said before the start of trading. A catheter is a thin and flexible tube inserted into a body cavity in order to allow for the insertion of fluids or instruments. Spectranetics’s shares are up $0.41, or 3%, to $12.43.
Avalon Pharmaceuticals Inc. (Nasdaq: AVRX) has initiated a Phase II clinical trial of a drug for pancreatic cancer, the Germantown, Md.-based company announced before the opening bell. Patients are currently being enrolled at Avalon’s cancer center at Yale University. The company expects to enroll patients at approximately 15 sites for the trial. The stock is up $0.11, or 3%, to $4.40.
Shares of Mothers Work, Inc. (Nasdaq: MWRK) are down $4.19, or 14%, to $25.75, on news that June same-store sales declined and dragged third-quarter sales below the previously issued guidance. Same-stores sales, based on 1,401 locations, fell 5.4% to $46.9 million, compared with $49.6 million in June of 2006, the Philadelphia-based retailer of maternity apparel reported before the market open. Third-quarter sales came to $153.2 million, below the company’s forecast of sales between $160.0 million and $166.0 million. Two analysts polled by Thomson Financial were looking for revenue of $160.48 million.
The rally on Wall Street got underway on news that U.S. retailers largely defied pessimistic predictions and posted modest gains in June.
Wal-Mart Stores Inc. (NYSE: WMT), the world’s largest retailer, breezed past analysts’ projected same-store sales, but department stores reported declines.
In economic news, the U.S. dollar has sunk to a second consecutive record low against the euro, the currency used by 12 countries in the 27-member European Union. Americans making the trip across the Atlantic Ocean will receive just 0.7264 euro for each greenback they exchange to buy souvenirs.
On the mergers front, Canadian aluminum producer Alcan Inc. (NYSE: AL) has accepted a $38.1 billion offer from British mining company Rio Tinto. Alcan was previously the target of a hostile bid by Pittsburgh, Pa.-based rival Alcoa Inc. (NYSE:AA).
