Russell, Dow edge higher
The Russell 2000 and the Dow have cautiously moved into positive territory following news of better-than-expected U.S. job growth in June. At 11:38 a.m. ET the Russell 2000 was up 2.32 points, or 0.27%, to 852.45. The Dow Jones Industrial Average had added 49.26 points, or 0.36%, to 13,615.10.
Redwood City, Calif.-based Tumbleweed Communications Corp. (Nasdaq: TMWD), a provider of messaging security solutions, anticipates a net loss of between $0.02 per share and $0.03 per share for the three-month period ended June 30. That’s below analysts’ projected profit of $0.01 per share. “Although our second quarter bookings were within the range we expected when we issued our guidance in April, revenue fell short of our expectations,” CEO James P. Scullion said in a press release after Thursday’s close. The stock is down $0.10, or 4%, to $2.50.
Shares of Astronics Corp. (Nasdaq: ATRO) are little changed following news that investment bank Boenning & Scattergood initiated coverage of the supplier of electronics for the global aerospace industry with an “outperform” rating and a target price of $40. Analyst Michael Ciarmoli justified his decision by noting that the East Aurora, N.Y.-based company’s revenues are diversified and that global aircraft production is expanding, according to news reports after the opening bell. Shares are down $1.12, or 3%, to $31.00.
Shares of Green Mountain Coffee Roasters, Inc. (Nasdaq: GMCR) are up $2.62, or 3%, to $89.10, following news that the Waterbury, Vt.-based company has approved a three-for-one stock split. All shareholders at the close of business on July 17 will receive two additional shares of common stock for each share of common stock held on that date, the company said before the start of trading. The additional shares will be distributed on July 27, and the first trading day on a split-adjusted basis will be on July 30, 2007.
In economic news, June nonfarm payrolls are attracting the lion’s share of attention. The U.S. Labor Department reported an increase of 132,000, above economists’ projections of 128,000, and revised upward the figures for previous months.
May’s figures were revised to 190,000 from a previously reported 157,000, while the number for April was changed to 122,000, compared with an initially reported 80,000.
Average hourly earnings rose 0.3%, to $17.38. The unemployment rate stayed at 4.5%.
Solid job growth indicates that U.S. economy has picked up after a slugging first quarter during which gross domestic product expanded just 0.7%. Many economists believe that economic growth in the second quarter of 2007 will be around 3% at an annualized rate.
However, the upbeat economic data raised the prospect that a tight labor market and an economy that’s picking up speed could lead to higher inflation.
That initially spooked investors, and stocks fell before recovering and edging into positive territory.
