Russell 2000 left behind
The Russell 2000 fell and the Dow gained ever so slightly after news the U.S. Federal Reserve remains focused on inflation. The Russell 2000 lost 2.13 points, or 0.25%, to finish at 833.18. The Dow Jones Industrial Average added 0.57 points, or 0.00%, to 13,424.96.
The most significant risk facing the U.S. economy is that inflation will not moderate, Federal Reserve Bank of Cleveland Sandra Pianalto said this morning. She added that keeping inflation in check remains the Fed’s top priority.
That’s a sign that the U.S. central bank will leave the federal funds rate unchanged at 5.25% at its next meeting on June 28.
Pianalto said also that the U.S. economy’s fundamentals remain solid.
Among specific small-cap companies:
Shares of Cantel Medical Corp. (NYSE: CMN) ended the day among the losers on news the Little Falls, N.J.-based maker of infection prevention and control products narrowed its quarterly profit and missed Wall Street’s expectations. The net income for the quarter ended April 30 was $2.25 million, or $0.14 per share, compared with a net income of $4.53 million, or $0.28 per share, during the same three months of 2006, the company reported before the opening bell. Analysts were looking for earnings of $0.16 per share. The stock declined $0.18, or 1%, to close at $16.73.
Duckwall-ALCO Stores, Inc. (Nasdaq: DUCK), which retails general merchandise throughout the central United States, started the year with a loss. The net loss for the quarter ended April 29 was $2.2 million, or $0.59 per share, compared with a net income of $0.54 million, or $0.14 per share, during the same period of 2006, the Abilene, Kan.-based company said before the opening bell. Two analysts polled by Thomson Financial were looking for earnings of $0.14 per share. Duckwall-ALCO blamed the loss on higher operating expenses. Meanwhile, same-store sales increased 1.2%. Shares have lost $0.65, or 2%, to $39.10.
Shares of Exton, Pa.-based Adolor Corp. (Nasdaq: ADLR) retreated on news this morning that the biopharmaceutical company has received a request from the U.S. Food and Drug Administration for additional data for its bowel dysfunction drug Entereg, which it is working on with the help of industry giant GlaxoSmithKline (NYSE: GSK). Development of the drug candidate is on hold until the FDA receives the requested information. Shares fell $0.07, or 2%, to $3.68.
