Russell ekes out gain, Dow dips
The Russell 2000 gained but the Dow fell on a day of choppy trading following news of positive economic developments and a rise in government bond yields. The Russell 2000 added 1.93 points, or 0.23%, to finish at 850.13. The Dow Jones Industrial Average fell 11.46 points, or 0.08%, to 13,565.84.
The U.S. Labor Department reported that jobless claims for the week ended June 30 increased 2,000 to 318,000 on a seasonally adjusted basis. That met economists’ expectations.
The picture in the services industry was rosier. The Institute for Supply Management’s index of non-manufacturing businesses moved up to 60.7 in June, from 59.7 in May, the group said after the start of trading. That’s a sign that U.S. economic growth has picked up.
Observers were expecting the index to fall to 58. Readings above 50 indicate growth.
However, instead of starting a rally, that news drove government bond yields up, pushing stocks down.
The yield on the 10-year Treasury note closed at 5.144, the highest level since June 22. Rising yields can lead to higher interest rates.
Among specific small-cap companies:
Shares of LaserCard Corp. (Nasdaq: LCRD) ended the day in positive territory on news the maker of secure ID credentials used in biometric identification has received a $0.1 million order for secure laser engravable passport data pages. The German subsidiary Challenge Card Design will help create a durable polycarbonate passport page that will carry a wealth of information about the holder, the Mountain View, Calif.-based company said before the start of trading. The stock added $0.11, or 1%, to close at $11.01.
First Aviation Services Inc. (Nasdaq: FAVS) had a rough landing, its shares falling $0.60, or 23%, to close at $2.05, on news the supplier of products and services to the aviation industry will voluntarily delist. Before the opening bell the Westport, Conn.-based company reported that it has notified the Nasdaq Stock Market that its board has unanimously approved the removal of its common stock from the exchange effective on July 16. First Aviation is eligible to delist because it had fewer than 300 holders of record of its common stock at the beginning of fiscal year 2007.
Shares of Premier Exhibitions, Inc. (Nasdaq: PRXI) appreciated following news after Tuesday’s close that the exhibitions organizer raised its quarterly profit to $3.26 million, or $0.10 per share, in the period ended May 31. That’s 308% higher than the net income of $1.06 million, or $0.03 per share, that the Atlanta, Ga.-based company recorded in the corresponding quarter a year earlier. Wall Street was expecting earnings of $0.08 per share. The stock gained $0.70, or 4%, to stop at $17.45.
