Russell 2000 slumps on inflation worries
The Russell 2000 index is in the red this morning following news that the U.S. central bank remains preoccupied with inflation. At 11:35 a.m. ET the Russell 2000 was down 2.84 points, or 0.34%, to 832.47. The Dow Jones Industrial Average was down 8.62 points, or 0.06%, to 13,415.77.
Shares of Israeli information solutions provider Sapiens International Corp. (Nasdaq: SPNS) are higher following news of a $20 million private placement round led by institutional investors Formula Systems Ltd. (Nasdaq: FORTY), Sapiens’ parent company. “One of our missions for this year was to ensure that all our subsidiaries have the adequate financial resources to support accelerated growth,” Formula President and CEO Gad Goldstein said on Sunday, June 10. Shares are up $0.08, or 3%, to $2.77.
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. That’s well below analysts’ projected 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 $3.27, or 8%, to $36.48.
Shares of wireless control products manufacturer Universal Electronics Inc. (Nasdaq: UEIC) are up $2.60, or 8%, to $34.75, on news the Cypress, Calif.-based company has received an analyst upgrade. WR Hambrecht + Co. has raised its rating to “Buy” from “Hold” and says it believes the stock will likely appreciate during the remainder of the year, according to a report placed on its site before market open. The financial services company also expects Universal Electronics to gear up its business in Asia sooner than anticipated and start shipping orders in 2008.
In economic news, high inflation remains the number one concern on the U.S. Federal Reserve’s radar screen, Federal Reserve Bank of Cleveland President Sandra Pianalto said this morning.
To many economists that’s a sign that the Fed will leave the federal funds rate unchanged at 5.25% at its next meeting on June 28.
