Russell rises on economic data
Stocks ended the day in positive territory following reports that U.S. economic growth has sifted into higher gear. The Russell 2000 moved up 3.63 points, or 0.43%, to finish at 839.81. The Dow Jones Industrial Average gained 56.42 points, or 0.42%, to 13,545.84.
The Conference Board’s index of leading indicators increased 0.3% in May, the non-profit global business organization said after the start of trading. That comes after an identical drop in April. The index is seen as one gauge of the U.S. economy’s direction.
Elsewhere, the monthly factory index released by the Philadelphia branch of the U.S. Federal Reserve shot up to 18 in June, the highest level in more than two years. Economists were anticipating a rise to 7. Readings above zero signal an expansion of the manufacturing sector.
In other economic news, initial jobless claims for the week ended June 16 increased 10,000 to 324,000 on a seasonally adjusted basis, according to the U.S. Labor Department. That’s a two-month high, suggesting that some of the previous tightness in the labor market has eased.
Among specific small-cap companies:
Shares of WSI Industries, Inc. (Nasdaq: WSCI) posted strong gains on news that third-quarter fiscal 2007 profit increased. The net income for quarter ended May 27 was $0.23 million, or $0.08 per share, compared with net income of $0.17 million, or $0.06 per share, during the same three months of 2006, the Monticello, Minn.-based maker of metal components said after Wednesday’s close. Analyst estimates were not available. Shares added $1.29, or 27%, to close at $5.99.
TLC Vision Corp. (Nasdaq: TLCV) lost focus, its stock falling $0.80, or 14%, to $5.10, on news the provider of eye care services will pay $115 million to purchase 20 million of its shares. The stock will be bought at a price of $5.75 per share, the Canadian company said before the start of trading. The deal will be financed primarily with an $85 million term loan that will come due on June 20, 2013. There will be about $49.2 million shares outstanding when all the transactions are complete.
Shares of Peoples Educational Holdings Inc. (Nasdaq: PEDH), which develops supplementary school materials, got a boost on news of quarterly revenue growth. For the three months ended May 31, revenue was $9.2 million, an increase of 20%, compared with revenue of $7.67 million during the same period of 2006, the Saddle Brook, N.J.-based company reported after Wednesday’s close. Analyst estimates were unavailable. The increase was primarily attributed to a 32% increase in revenue from college preparation materials. Shares gained $0.63, or 19%, to end the day at $3.88.
