Russell 2000: Thrice is nice
The Russell 2000 set a third consecutive record high close following news of strong U.S. job growth. The Russell 2000 added 6.27 points, or 0.74%, to close at a record 853.45. The Dow Jones Industrial Average gained 40.47 points, or 0.30%, to close at 13,668.11, improving on its record high on Wednesday.
Investors reacted to news that non-farm payrolls increased 157,000 in May, beyond economists’ projected rise of 145,000 jobs. The U.S. economy added 80,000 jobs in April.
Also, the personal consumption expenditures price index, a key indicator of inflation dropped to its lowest level in more than a year. That makes it less likely the U.S. Federal Reserve will consider raising interest rates anytime soon.
Elsewhere, the price of oil increased just over one dollar, pushing past $65 a barrel, following news that a pipeline between Texas and Georgia was shut down due to a suspected leak.
Among individual small-cap companies:
Shares of Everlast Worldwide Inc. (Nasdaq: EVST) ended the day in the winners’ column following news the maker of sporting goods equipment is going private. The board has already approved a buyout bid by private investor The Hidary Group for $26.50 per share in cash, a 14.5% premium over its closing price on Thursday, the New York-based company said before the start of trading. The acquisition is set to close in the third quarter of 2007. The stock added $3.21, or 14%, to $26.36.
News its painkiller is inefficient sent shares of Labopharm Inc. (Nasdaq: DDSS) into free fall, dropping $3.24, or 51%, to $3.07. That’s close to the 52-week low of $2.83. Labopharm received a letter from the U.S. Food and Drug Administration that the painkilling drug tramadol is not efficient, the Canadian company said after Thursday’s close. Analyst National Bank Financial responded by downgrading shares to “sector perform” from “sector outperform.”
Rockville, Md.-based EntreMed, Inc.’s (Nasdaq: ENMD) oncology drug has been shown to induce tumor regression in pre-clinical trials, the biopharmaceutical company said before the opening bell. EntreMed said it wants to begin human trials in the fourth quarter of 2007. Shares gained $0.10, or 6%, to close at $1.89.
