Small gains across the board
Stocks are posting mild gains on news of conflicting economic data on monthly home sales and durable goods. In small cap action, shares of EVCI Career Colleges Incorporated (Nasdaq: EVCI) jumped on news of a debt restructuring, while Charles & Colvard, Ltd. (Nasdaq: CTHR) fell on disappointing quarterly earnings.
At 11:07 AM the Russell 2000 was up 1.58 points, or 0.19 percent, to 827.94. The Dow Jones Industrial Average had added 49.49 points, or 0.38 percent, to 13,003.43.
Shares of Palo Alto-based CV Therapeutics, Inc. (Nasdaq: CVTX) gained on news the company narrowed its first-quarter loss. Net loss for the first quarter ended March 31 was $55.1 million, or $0.93 per share, compared with a net loss of $70.5 million, or $1.57 per share in the first three months of 2006, the company said after Tuesday’s close. Analysts were expecting a loss of $1.05 per share. The improvement was attributed to lower marketing costs and stronger sales of the drug Ranexa. Shares are up $0.59, or 7.48%, to $8.48.
Jewelry distributor Charles & Colvard, Ltd. is sharply lower after news it missed earnings expectations for the first quarter of 2007. Net income for the first quarter of 2007 fell 78% to $339,000, or $0.02 per share, compared with net income of $1.5 million, or $0.08 per share a year ago, the company said after Tuesday’s close. Wall Street was looking for earnings of $0.09 per share. The company blamed its shortfall on a lack of new distribution shipments and a reduction in the number of retail outlets offering moissanite jewelry. The stock is down $1.49, or 22.11%, to $5.25.
Shares of EVCI Career Colleges Incorporated are soaring, up $0.22, or 41.51%, to $0.75 on news the company has signed an agreement to restructure its bank debt. The company has signed a deal with ComVest Group Holding LLC that will provide gross proceeds of $10.1 million and secure letters of credit of up to $6.7 million, the company said before the opening bell. EVCI provides college education through its subsidiaries Interboro Institute, Inc., Technical Career Institutes, Inc., and the Pennsylvania School of Business, Inc.
New U.S. homes sales rose 2.6% in March but missed expectations, the Commerce Department said after the market open. That’s an annual rate of 858,000 units, 30,000 below the projected rate of 888,000 units. In February, new single-family home sales increased at a revised annual rate of 836,000.
In other economic news, new orders of durable goods increased 3.4% in March, the Commerce Department said before the opening bell. That’s more than the February increase of 2.4% and above analysts’ expectations of a rise of 2.5%. Today’s figures represent the biggest increase since September 2004, when orders climbed 7.9%.
