Russell 2000 up, trade deficit down
The major U.S. indices are higher following news of an unexpected narrowing of the U.S. trade deficit in May. At 12:03 p.m. ET the Russell 2000 was up 3.21 points, or 0.39%, to 828.53. The Dow Jones Industrial Average had added 28.85 points, or 0.22%, to 13,295.58.
Shares of FOCUS Enhancements, Inc. (Nasdaq: FCSE) are lower following news the Campbell, Calif.-based designer of wireless video technologies has been downgraded. Investment bank ROTH Capital Partners, LLC has changed its rating to “Hold” from “Buy,” citing concerns that the company does not have any new developments on the horizon, according to news reports before the opening bell. The target price has been reduced to $1.5 from $1.75. Shares are down $0.14, or 10%, to $1.23.
Shares of Dynamic Materials Corp. (Nasdaq: BOOM) are trading higher on news the provider of explosion-welded clad metal plates has announced a cash dividend. Stockholders will receive $0.15 per share, payable on July 6, the Boulder, Col.-based company said after Thursday’s close. Shares are up $0.17, or 0.49%, to $34.89.
Lakeland Industries, Inc. (Nasdaq: LAKE), which manufactures protective clothing, reported that its quarterly profit more than halved. The net income for the three months ended April 30 was $0.53 million, or $0.10 per share, compared with a net income of $1.46 million, or $0.26 per share, in the same period of 2006, the Ronkonkoma, N.Y.-based company said after Thursday’s close. That fell short of Wall Street’s projected earnings of $0.24 per share. CEO Christopher Ryan blamed the weak quarter on a restructuring of Lakeland’s Mexican operations. Shares have shed $0.48, or 3%, to $13.35.
The U.S. trade deficit narrowed 6.2% to $58.50 billion in May, the Commerce Department said before the opening bell. Economists had projected a deficit of $63 billion, following March’s revised deficit of $62.39 billion.
Imports of consumer goods fell along with imports of capital goods, auto parts, and food. Meanwhile, exports of consumer goods and food and beverages increased.
The U.S. trade deficit with China increased 12% to $19.37 billion, from $17.25 billion in March.
Bond yields on 10-year Treasury notes climbed to 5.16% today. Yields broke 5% on Thursday for the first time since August, leading to a sharp decline of U.S. stocks. The 2-year note is at 5.02%
High yields make bonds look more attractive relative to stocks.
