Almost, but no record
The Russell 2000 closed just shy of a new record after briefly venturing into uncharted territory this afternoon. In specific small cap action, shares of Antigenics Inc.’s (Nasdaq: AGEN) rose on upbeat results from clinical trials of its kidey cancer drug, while American Superconductor Corp. (Nasdaq: AMSC) lifted its stock price after releasing a new power grid technology.
The Russell 2000 gained 9.99 points, or 1.21%, to 833.65, just below its May 9 closing high of 834.77. The Dow Jones Industrial Average lost 13.65 points, or 0.10%, to close at 13,542.88.
Shares of Luna Innovations Inc. (Nasdaq: LUNA) were the day’s big winners, climbing $2.06, or 69%, to close at $5.06, following news the Roanoke, Va.-based company received the regulatory green light for one of its medical devices. Luna Innovations said before the opening bell that it has received a clearance letter from the U.S. Food and Drug Administration for its Emboli Detection and Classification (EDAC) Quantifier, which uses ultrasound technology to detect air bubbles in blood during invasive surgeries.
Additional data from a study of Antigenics Inc.’s oncology drug Oncophage showed that it prolongs the survival rate of kidney cancer patients, the New York-based biotechnology company said after the opening bell. The end-of-study results, which reflect an additional 17 months of data collection, showed a clinically significant improvement in recurrence-free survival. Moreover, there was a trend towards improved overall survival. Shares added $0.72, or 28%, to $3.26.
Shares of Westborough, Mass.-based American Superconductor Corp. gained ground on news of a new superconductor power grid technology. This technology, called Secure Super Grids, is expected to significantly enhance the capacity, security and efficiency of electric power infrastructures in urban and metropolitan areas, the company claimed before the opening bell. It uses high temperature superconductor wires, which can conduct up to 10 times the amount of power of today’s conventional copper cables. The stock gained $2.76, or 18%, to end the day at $17.76.
U.S. stocks moved primarily in reaction to news of mergers and acquisitions.
Private equity group Blackstone Group LP will go public by offering as many as 153.3 million shares for $29 to $31 each to raise $4.75 billion, in addition to giving an 8% share to the Chinese government for $3 billion.
Also, EMI Group Plc, an independent music company headquartered in England, is being bought out by Terra Firma Capital Partners Ltd. for $4.7 billion
Elsewhere, General Electric Co. (NYSE: GE) has agreed to sell its plastics business to Saudi Arabian chemicals company Saudi Basic Industries Corp. for $11.6 billion in cash.
