New record for Dow, Russell lower
April 19 (SmallCapInvestor.com) – The Dow closed at a record high for the second day in a row despite fears of overheating in China, while the Russell posted another loss. Among small caps, a downwardly revised earnings forecast hurt shares of KVH Industries, Inc. (Nasdaq: KVHI) while shares of Maxco Inc. (Nasdaq: MAXC) will be delisted.
The Russell 2000 lost for the third consecutive day, dropping 5.06 points, or 0.61 percent, to 819.32, after setting a record high of 831.44 on Monday. The Dow Jones Industrial Average improved on Thursday’s record close, adding 4.79 points, or 0.04 percent, to 12,808.63.
Shares of mobile communications products manufacturer KVH Industries, Inc. ended the day among the losers, losing $0.69, or 7.26%, to $8.85, after the company revised downward its 2007 profit guidance. Earnings will be between $0.36 per share and $0.44 per share, down from February’s estimate of earnings between $0.40 per share and $0.48 per share, Middletown, R.I.-based KVH Industries said before the opening bell. Analysts were projecting earnings of $0.48 per share.
Lexington, Mass.-based Critical Therapeutics, Inc. (Nasdaq: CRTX) moved up following news preclinical research showing one of the company’s proteins helps against autoimmune disease will be published later this spring. Research showing the effectiveness of High Mobility Group Box-1 protein (HMGB1) will be published in the May 2007 issue of Nature Immunology, Critical Therapeutics said after Wednesday’s close. Shares added $0.09, or 4.97%, to close at $1.90.
Shares of Maxco Inc. which operates in the heat treating business, tumbled on news the company is being delisted. The Nasdaq Listing Qualifications Panel has denied Maxco’s request for continued listing, the Grand Ledge, Mich.-based company said after the start of trading. Shares will be suspended from trading on the Nasdaq Stock Market effective at the open of business on Friday, April 20, 2007. The stock lost $0.06, or 1.00%, to end the day at $5.95.
Stocks began the day down on news the Shanghai Composite Index lost 4.52% on Thursday over fears the government may increase interest rates to reduce the country’s sizzling growth.
Investors became more bullish following midday reports of strong earnings. The world’s largest brokerage Merrill Lynch & Co. Inc., (NYSE: MER) said its profit increased 31% in the first quarter, while pharmaceutical giant Merck & Co., Inc. (NYSE: MRK) announced that its first-quarter profit climbed 12% due primarily to strong demand for anti-cholesterol pills.
The price of oil fell more than one dollar to below $62 a barrel after a pipeline running between the United States and Canada was repaired and resumed operations.
