Russell 2000 falls as economy slows
A smaller-than-expected rise in quarterly U.S. GDP is weighing on small cap stocks this morning. In specific company developments, a decline in quarterly net income lowered shares of Commercial Vehicle Group, Inc. (Nasdaq: CVGI), while news of earnings below expectations hurt shares of Intervoice, Inc. (Nasdaq: INTV).
At 11:26 a.m. ET the Russell 2000 was down 4.52 points, or 0.54 percent, to 829.28. The Dow Jones Industrial Average had added 5.93 points, or 0.05 percent, to 13,111.43.
Shares of Dallas-based Intervoice, Inc. are down on news of disappointing annual financial results. The net loss for the fiscal 2007 ended Feb. 28 was 1.7 million, or $0.04 per share, down from net income of $16.5 million, or $0.42 per share, in 2006, the software company said after Thursday’s close. Wall Street was looking for earnings of $0.01 per share. The stock is down $0.96, or 13.17%, to $6.33.
Salt Lake City-based customs solutions provider Sento Corporation (Nasdaq: SNTO) is up sharply following news that integrated mobile entertainment provider Amp'd Mobile has chosen Sento to provide right channeling support to enhance its customer service. Training is currently underway, and Sento has already begun recognizing revenues, the company said before the start of trading. Shares are up $0.54, or 27.11%, to $2.53.
Shares of New Albany, Ohio-based Commercial Vehicle Group, Inc. have lost ground, down $2.32, or 11.08%, to $18.61 on news of weak quarterly results. Revenues for the quarter ended March 31 were $198.8 million, compared with $229.3 million a year earlier, the commercial vehicle systems solutions provider said after Thursday’s close. Net income was $3.0 million, or $0.14 per share, compared with $13.4 million, or $0.62 per share, in the prior-year quarter. Analysts were expecting earnings of $0.40 per share. Commercial Vehicle Group blamed a slow down in the North American Class 8 heavy truck market. Shares are down $1.87, or 8.93%, to $19.06.
The U.S. economy grew at an annualized pace of just 1.3% in the first-quarter of 2007, the Commerce Department said before the start of trading. That’s the smallest increase in four years, below economists’ estimate of 1.8% GDP growth. The U.S. economy expanded 2.5% in the fourth quarter of 2006.
