Russell 2000 flying high
Wall Street rallied on news of an unexpected jump in U.S. manufacturing in June. The Russell 2000 added 11.36 points, or 1.36%, to finish at 845.06. The Dow Jones Industrial Average gained 126.81 points, or 0.95%, to 13,535.43.
Despite losing 1.46% during June, the Russell 2000 gained 4.42% during the first six months of 2007.
The third quarter of 2007 got off to a good start following news that manufacturing in the United States grew in June. The Institute for Supply Management’s index moved up to 56, the industry organization reported after the start of trading. That’s the fifth consecutive month of expansion and the highest level in more than one year.
Economists were forecasting the index to stay at May’s level of 55. Readings greater than 50 indicate expansion.
Among specific small-cap companies:
Shares of Dynatronics Corp. (Nasdaq: DYNT) moved up $0.40, or 37%, to settle at $1.48, following news the maker of medical products has acquired six of its independent distributors for $8.3 million. The acquisition of the six companies is expected to increase Dynatronics’ earnings during the first half of fiscal 2008 and increase overall revenue for the fiscal year ending June 30, 2008, by 80%, the Salt Lake City-based company reported before the opening bell.
Shares of Unica Corp. (Nasdaq: UNCA) bucked the trend to end the day in negative territory following news the provider of enterprise marketing management software received an analyst downgrade. An analyst with investment bank Ferris Baker Watts Inc downgraded the stock to “Sell” from “Neutral” due to concerns relating to the Waltham, Mass.-based company’s dismissal of its auditor, according to news reports after the start of trading. Unica announced today that its new auditor is PricewaterhouseCoopers, replacing Ernst and Young, but did not provide a reason. Shares fell $1.06, or 6%, to close at $15.44.
Saifun Semiconductors Ltd. (Nasdaq: SFUN), which supplies advanced non-volatile memory solutions, will acquire processing technology from Chinese semiconductor firm Semiconductor Manufacturing International Corp. Samples of the first flash product based on the newly purchased processing technology have already been shipped, the Israeli company said before the opening bell. The two companies will continue to work together to develop advanced technologies. The stock added $0.10, or 1%, to end the day at $11.98.
