Russell 2000 holding on
The Russell 2000 has narrowed its early gains but is still in positive territory, while the Dow is flat. At 11:20 a.m. ET the Russell 2000 was up 1.28 points, or 0.15%, to 839.74. The Dow Jones Industrial Average was down 2.85 points, or 0.02%, to 13,424.88.
Shares of CryoCor, Inc. (Nasdaq: CRYO) are soaring, up $2.34, or 92%, to $4.88, following news the Advisory Panel of the U.S. Food and Drug Administration has recommended one of its medical devices for approval. The CryoCor Cardiac Cryoablation System is a catheter that uses extreme cold to destroy damaged heart tissue in order to treat cardiac arrhythmias, the San Diego-based company reported before the start of trading. The product has already been approved in Europe. The FDA typically heeds the advice of its panels. A final decision is expected in August.
Cambridge, Mass.-based Momenta Pharmaceuticals Inc. (Nasdaq: MNTA) believes that a review by the U.S. Food and Drug Administration of its application for a generic version of the anti-blood clotting drug Lovenox is going to take more than the previously estimated 18 to 24 months, the company said before the market open. The application was originally filed on Aug. 29, 2005. Shares are down $1.45, or 13%, to $9.87.
Shares of Tegal Corp. (Nasdaq: TGAL), which makes etch and deposition systems that enable the production of integrated circuits, narrowed its quarterly loss. The net loss for the quarter ended March 31 was $2 million, or $0.28 per share, compared with a loss of $2.4 million, or $0.26 per share, during the same three months of 2006, the Petaluma, Calif.-based company said Wednesday’s close. However, the quarterly loss included litigation and non-cash expenses that together totaled about $1.2 million. Analyst estimates were not available. Shares are up $0.54, or 9%, to $6.40.
In economic news, U.S. gross domestic product for the first quarter was revised upward, but still came in below expectations. The U.S. economy expanded 0.7% during the first quarter of 2007, the U.S. Commerce Department before the opening bell. That’s above the previously estimated growth rate of 0.6%, but below economists’ forecasted growth rate of 0.8%.
The U.S. economy expanded 2.5% in the final three months of 2006.
The situation on the labor market looked better.
Jobless claims for the week ended June 23 fell 13,000 to 313,000 on a seasonally-adjusted basis, the Labor Department reported before the opening. Observers were expecting a decline of 9,000.
Investors will be holding their breath ahead of the conclusion of the U.S. Federal Reserve’s regularly scheduled two-day meeting on interest rates. The twelve-member Federal Open Market Committee is expected to leave the federal funds rate unchanged at 5.25%. As always, the wording of the statement will be closely watched for clues of the Fed’s view on inflation and future intentions.
The final decision will be released at 2:15 p.m. ET.
