Russell left behind as other indices rise
The Russell 2000 (NYSE: IWM) has not joined the Dow Jones Industrial Average (INDU) in positive territory on news of upbeat manufacturing data. At 12:06 p.m. ET the Russell 2000 was down 0.77 points, or 0.09%, to 855.00. The Dow had added 71.21 points, or 0.51%, to 13,978.46.
Shares of Pointer Telocation Ltd. (Nasdaq: PNTR) are higher on news the Israeli provider of services to insurance companies and automobile owners has entered into a definitive agreement with vehicle security and fleet management products maker Cellocator Ltd. for the purchase of its assets worth about $18.5 million. The transaction will close within the coming weeks. Shares are up $0.38, or 4%, to $9.03.
Valence Technology Inc. (Nasdaq: VLNC), which provides long-life battery systems, announced before the opening bell that its lithium phosphate batteries will be used in an MIT student engineering project that converts a 914 Porsche into an electric vehicle. The vehicle will be used as a research and development tool by MIT students to demonstrate the viability of electric powered automobiles. Austin, Texas-based Valence contributed 18 lithium phosphate rechargeable batteries so that students could replace the car’s original engine with an electric motor that includes 12 batteries and a battery management system. The stock is down $0.04, or 3%, to $1.18.
Shares of GeoEye, Inc. (Nasdaq: GEOY), which provides global space-based imagery of the earth, have moved up following news of a positive mention by TV pundit Jim Cramer. The stock commentator recommended the Dulles, Va.-based company, citing an increase in demand for satellite imagery by governments. The stock is up $1.19, or 23%, to $23.19.
In economic news, conditions for manufacturers in New York State continued to improve in July, according the Federal Reserve Bank of New York monthly survey released this morning.
The Empire State Manufacturing Survey shows that the index of general business conditions was 26.5, near its June level. The new orders index grew for the fourth consecutive month to its highest reading in more than a year.
The outlook for employment and capital spending also improved. The survey showed that 40% of manufacturers have plans to increase production in the second half of 2007, while 26% are planning a reduction.
Renewed strength in manufacturing will help the U.S. economy weather the slump in the housing sector and the subprime mess.
Located in Manhattan, the Federal Reserve Bank of New York is the most important of the twelve U.S. Federal Reserve Banks. On the first day of each month it sends out a questionnaire to a pool of approximately 200 manufacturing executives in New York State.
