Russell 2000 races ahead
The Russell 2000 index is leading the bull market this morning, following news of solid U.S. job growth. At 11:25 a.m. ET the Russell 2000 had added 5.92 points, or 0.70%, to 853.10, above Thursday’s record close. The Dow Jones Industrial Average was up 25.27 points, or 0.19%, to 13,652.91.
Shares of Everlast Worldwide Inc. (Nasdaq: EVST) are higher following news the maker of sporting goods equipment will be acquired by private investor The Hidary Group for $26.50 per share in cash, a 14.5% premium over its closing price on Thursday. The board has already approved the buyout, which is subject to shareholder and regulatory approval and is set to close during the third quarter of 2007, the New York-based company said before the start of trading. Shares are up $2.90, or 13%, to $26.05.
Boston, Mass.-based CRA International, Inc. (Nasdaq: CRAI) announced that its fiscal 2007 second quarter results will miss Wall Street’s expectations. The net income for the quarter ended May 11 will be $6.7 million, or $0.53 per share, based on preliminary numbers, compared with $6.7 million, or $0.55 per share, in the same quarter of 2006, the consulting company said after Thursday’s close. Six analysts surveyed by Thomson Financial were looking for earnings of $0.64 per share. CEO James Burrows attributed the results to problems with litigation-related revenues. The stock has lost $6.66, or 13%, to $46.23.
Shares of I-Flow Corp. (Nasdaq: IFLO) are up $0.87, or 6%, to $16.55, on news the Lake Forest, Calif.-based manufacturer of ambulatory infusion systems has inked a strategic alliance with GE Healthcare (NYSE: GE). The two companies have agreed to conduct clinical trials of pain management systems that use ultra sound technology.
Non-farm payrolls increased 157,000 in May, the U.S. Labor Department reported before the start of trading. That’s slightly above Wall Street’s expected rise of 145,000 jobs, but almost twice April’s increase of 80,000. The unemployment rate stayed at 4.5%.
However, personal income declined 0.1% in April, following a revised gain of 0.8 in March, the Commerce Department said before market open. Economists were looking for a rise of 0.3%.
The core personal consumption expenditures price index, an indicator of inflation, dropped to its lowest level in more than a year.
Solid job growth and stable inflation suggest the U.S. Federal Reserve will be reluctant to raise interest rates.
Elsewhere, the index of pending home sales decreased to 101.4 in April, an annual rate of 3.2%, the National Association of Realtors announced after the opening bell. Regionally, the decline was steepest in the Northeast and West, while the South and Midwest saw small gains.
