Russell 2000 leads the bulls
The Russell 2000 small cap index is leading the rally on Wall Street on news that core producer prices in May remained in check. At 11:40 a.m. ET the Russell 2000 had gained 5.14 points, or 0.62%, to 837.68. The Dow Jones Industrial Average was up 60.97 points, or 0.45%, to 13,543.32.
Shares of software provider Convera Corp. (Nasdaq: CNVR) are eking out a gain following news its quarterly loss narrowed. The net loss for the quarter ended April 30 was $7.7 million, or $0.15 per share, compared with a net loss of $10.6 million, or $0.21 per share, during the same three months of 2006, the Vienna, Va.-based company reported after Wednesday’s close. Analyst estimates were unavailable. The company attributed the narrowing to lower staffing costs and a discontinuation of non-strategic activities. Shares are up $0.01, or 0.24%, to $4.19.
Irving, Texas-based DG FastChannel Inc. (Nasdaq: DGIT), a provider of digital technology services, will buy advertising media company GTN, Inc. for $11.5 million in cash. DG FastChannel Inc. intends to divest GTN’s non-core production and post-production assets and operations and focus on its ad distributions operations, the company said before the opening bell. The deal is expected to close in the third quarter of 2007. The stock has added $0.56, or 3%, to $22.02.
Shares of Zila, Inc. (Nasdaq: ZILA) are up $0.07, or 5%, to $1.59, following news that CEO Douglas Burkett has resigned. He will be replaced by Frank J. Bellizzi, who had previously served as executive VP and President of its pharmaceutical division, the Phoenix, Ariz.-based developer of cancer detection products said before the start of trading. “As an organization, we intend to aggressively drive the company to profitability and continue to expand Zila’s leadership position in oral cancer detection,” Bellizzi said in a press release.
Trading got off to a good start this morning following news that core U.S. producer prices in May increased in line with expectations.
Core producer prices, which exclude the often volatile costs of food and fuel, increased 0.2% in May, Labor Department reported before the opening bell. The figures matched economists’ projections.
Core producer prices have climbed 1.6% in the past 12 months, while overall prices added 4.1%. That indicates that inflation remains a risk but has not gotten out of control.
Producer prices are the prices paid by manufacturers and wholesalers.
In other economic news, U.S. jobless claims for the week ended June 9 remained unchanged at 311,000, the Labor Dept. said. Economists expected a tiny increase of 1,000 claims to 312,000.
