Russell finishes strong
The Russell 2000 and the Dow snapped a three day losing streak, despite a rough start on news of a decline in orders for durable goods. The Russell 2000 added 12.33 points, or 1.49%, to finish at 838.46. The Dow Jones Industrial Average gained 90.07 points, or 0.68%, to 13,427.73.
Trading got off to a sour start on news that orders for durable goods fell 2.8% to $213.02 billion in May, according to the U.S. Commerce Department. Economists were forecasting a drop of 1.1%. Durable goods are goods intended to last at least three years.
However, investors became bullish in the early afternoon, as the yield on the U.S. government’s 10-year Treasury fell. The yield declined to 5.095%, its lowest close since June 6.
Higher yields make bonds more attractive relative to stocks. Additionally, bond yields help determine rates on loans and mortgages.
Among specific small-cap companies:
Shares of Playboy Enterprises Inc. (NYSE: PLA) moved into the winners’ column following news the Chicago-based company plans to open a mansion on the Chinese island of Macau. The 40,000 square-foot entertainment destination will consist of nightlife options, dining, shops, and a Hugh M. Hefner Villa, Playboy reported before the opening bell. The mansion is expected to open in late 2009. Shares gained $0.29, or 3%, to close at $11.44.
Aspreva Pharmaceuticals Corp. (Nasdaq: ASPV) shed $1.90, or 10%, to $17.13, on news of a failed drug trial. The drug candidate CellCept failed to meet the primary goal in a late-stage trial for the treatment of lupus nephritis, the Canadian company said before the start of trading. It has not yet decided what steps to take next. Lupus nephritis is a disease of the immune system that causes the body attacking its own tissue, typically resulting in kidney inflammation.
Shutterfly Inc. (Nasdaq: SFLY), which enables users to put their pictures online, has acquired children’s book publisher Make It About Me!. The goal is to integrate a book’s illustrations with pictures, so that youngsters can appear as characters in their favorite reading materials, the Redwood City, Calif.-based company said before trading got underway. Financial details were not disclosed. Shares added $0.38, or 2%, to $22.31.
