Russell 2000 maintains momentum
The Russell 2000 is holding on to its early gains in afternoon trading, as investors react to better-than-expected economic news. Among specific small caps, Glu Mobile Inc. (Nasdaq: GLUU) reported earnings that outpaced expectations, while news of an increase in profit boosted shares of FortuNet, Inc. (Nasdaq: FNET).
At 2:20 p.m. ET the Russell 2000 added 0.90 points, or 0.11 percent, to 829.36. The Dow Jones Industrial Average was up 8.37 points, or 0.06 percent, to 13,220.25, on track for a third consecutive record close.
Shares of Las Vegas-based FortuNet, Inc. are trading in positive territory on news the gaming and entertainment company boosted its quarterly revenue and profits. Revenue for the period ended March 31 was $4.3 million, an increase of 9% compared with sales of $4 million in the first quarter of 2006. Earnings were $0.11 per share, compared with earnings of $0.02 per share a year prior. That’s above analysts’ estimated earnings of $0.08 per share. The stock is up $0.21, or 2%, to $9.11.
Boca Raton, Fla.-based Nabi Biopharmaceuticals (Nasdaq: NABI) has narrowed its quarterly net loss. For the period ended March 31 the company had a net loss of $10.7 million, or $0.17 per share, compared with a loss of $15.5 million, or $0.26 per share in the first quarter of 2006, Nabi said after Wednesday’s close. That’s better than analysts’ expected net loss of $0.19 per share. Nevertheless, shares are down $0.18, or 3%, to $5.54.
Shares of mobile games publisher Glu Mobile Inc. are gaining after news the San Mateo, Calif.-based company forecast second quarter earnings above analysts’ expectations. Net income for the quarter ended June 30 is forecast at between breakeven and $0.5 million, or $0.00 per share and $0.02 per share, Glu Mobile said after Wednesday’s close. Five analysts surveyed by Thomson Financial expected a quarterly loss of $0.03 per share. CEO Greg Ballard said be believes that the company will benefit from growth in the demand for next generation handsets. The stock is up $0.65, or 6%, to $12.14.
The productivity of American workers grew more than expected during the first three months of 2007, the Labor Department said before the opening bell. The 1.7% rise was above analysts’ projections of a rise of 1.6% on an annualized basis.
Additionally, figures released by the Labor Department showed that U.S. jobless claims fell to 305,000 for the week ended April 28, a decline of 21,000 on a seasonally adjusted basis. Analysts were expecting claims to increase by 1,000.
