New Dow record as Russell 2000 falls
The Dow set a new record close while the small cap index stumbled on a day when news of a merger in the aluminum sector occupied investors’ minds. Among specific Russell 2000 stocks, analysts lowered ISTA Pharmaceuticals, Inc.’s (Nasdaq: ISTA) target price while shares of Cell Therapeutics, Inc. (Nasdaq: CTICD) moved up on news of a fast-track status from the FDA.
The Russell 2000 lost 1.01 points, or 0.12 percent, to 831.87. The Dow Jones Industrial Average closed in record territory for the fifth day in a row, adding 48.35 points, or 0.36 percent, to 13,312.97.
Shares of Cell Therapeutics, Inc. appreciated on news the Seattle-based company has been granted a fast-track designation by the U.S. Food and Drug Administration for its treatment of refractory indolent non-Hodgkin's lymphoma, the company said before the opening bell. NHL is a life threatening condition that is generally considered incurable. Shares added $0.07, or 1%, to $5.57.
Irvine, Calif.-based ISTA Pharmaceuticals, Inc. is still considered a “buy,” by ROTH Capital Partners, LLC, but with a decreased stock price. Roth reiterated its buy rating but reduced its target price to $8.50 from $11, according to news reports after the market open. Shares of ISTA Pharmaceuticals continued declining, shedding $0.27, or 4%, to close at $6.53. The stock fell sharply on Friday after the FDA rejected the company’s eye inflammation drug.
Shares of Westford, Mass.-based Cynosure, Inc. (Nasdaq: CYNO) ended the day in the winners’ column after the aesthetic treatment systems maker received a recommendation from stock market commentator Jim Kramer during Friday’s edition of the show “Mad Money” on CNBC. The stock rose $0.92, or 3%, to $31.89.
The major news item that got investors’ attention today was the bid by New York-based aluminum giant Alcoa Inc. (NYSE: AA) to purchase its smaller Canadian rival Alcan Inc. (NYSE: AL) for $26.9 billion. That’s $73.25 per Alcan share, a 20% premium over Friday’s closing price of $61.03.
If the acquisition goes through the new entity will be the largest aluminum company by production capacity in the world, with 20% of global aluminum production.
