Record close for Russell 2000
April 16 (SmallCapInvestor.com) – Stocks rallied today on upbeat news from the financial sector and strong retail sales. Among small caps, Antigenics, Inc. (Nasdaq: AGEN) moved up following news its drug helps against brain tumors, while strong quarterly sales lifted shares of software solutions provider JDA Software Group, Inc. (Nasdaq: JDAS).
The Russell 2000 added 12.06 points, or 1.47 percent, to 831.44, a new record close. The previous high of 829.44 was set on Feb. 22. The Dow Jones Industrial Average rose 108.33 points, or 0.86 percent, to 12,760.46.
Shares of biotechnology company Antigenics, Inc. ended the day in positive territory, lifted by news the cancer vaccine Oncophage helps against brain cancer. A study involving 12 patients showed the vaccine boosts immune response and improves survival, the New York-based company said after the opening bell. Shares gained $0.76, or 20.71%, to $4.43.
Optical networking components manufacturer LightPath Technologies, Inc. (Nasdaq: LPTH) lost ground on news it expects a decline in fiscal third-quarter sales. Sales will be $2.9 million, a drop of 8% compared with sales of $3.1 million in the third quarter of fiscal 2006, the Orlando, Fla.-based company said after Friday’s close. LightPath attributed the decline to slugging demand for communications-related products. Shares lost $0.57, or 9.52%, to close at $5.42.
Shares of Scottsdale, Ariz.-based software solutions provider JDA Software Group were among the winners today following news the company projects first-quarter sales above Wall Street’s expectations. Total revenues for the first quarter ended March 31, will be $89.7 million to $90.7 million, compared with total revenues of $47.9 million a year earlier, JDA software group said before the opening bell. Analysts were expecting total revenue of $85.75 million. Quarterly earnings will be between $0.26 per share and $0.28 per share, above Wall Street’s projections of $0.21 per share. The stock price rose $1.93, or 12.75%, to $17.07.
U.S. retail sales increased more than expected in March, the Commerce Department reported before the opening bell. Sales rose 0.7%, above economists’ projections of an increase of 0.5%. Retail sales in February increased 0.5%. Excluding auto and parts dealers, sales of all retailers were in line with economists’ expectations of a 0.8% increase.
The data indicate that the American consumer remains strong. Employment growth and higher wages are helping Americans handle a drop in home prices and more expensive gasoline.
First quarter revenue at Citigroup Inc. (NYSE: C), the largest financial institution in the country, has increased 15%. Citigroup also said its first-quarter profit fell 11% due to costs associated with the plan announced last week to eliminate 17,000 jobs in order to curb expenses.
In other financial news, education lender Sallie Mae (NYSE: SLM) will be bought by two private-investment funds and banks J.P. Morgan Chase and Bank of America for $25 billion, according to an announcement before the start of trading.
