Russell rises on retail, econ data
The Russell 2000 joined the other major U.S. indices posting strong gains on news of encouraging retail sales and economic data. The Russell 2000 moved up 10.82 points, or 1.32%, to finish at 832.54. The Dow Jones Industrial Average added 187.34 points, or 1.41%, to 13,482.35.
Stocks gained right out of the gate on news that U.S. retail sales rose 1.4% in May, according to a report by the U.S. Commerce Department. That’s more than twice the expected increase of 0.6% and a sign the economy is picking up speed.
Meanwhile, import prices climbed 0.9% in May, the Labor Department reported.
The rally shifted into higher gear in the afternoon on news the U.S. Federal Reserve’s beige book showed that overall price pressures in most U.S. regions have not increased despite a rise in energy costs.
Among specific small-cap companies:
Shares of Caraustar Industries, Inc. (Nasdaq: CSAR) took part in the rally following news that the manufacturer of recycled paperboard products has received an analyst upgrade. Financial services firm UBS raised its rating to “Neutral” from “Reduce,” saying that the Austell, Ga.-based company should recover from a weak first quarter due to higher prices for recycled boxboards. Shares gained $0.66, or 13%, to close at $5.84.
Westford, Mass.-based NetScout Systems, Inc. (Nasdaq: NTCT) slipped, falling $0.02, or 0.26%, to end the day at $7.60, on news that the city of Denver has decided to expand investment in the company’s technology. Denver Health, the city’s healthcare safety net, has decided to use NetScout’s software to enable streaming video and ensure quick access to critical applications, the company said before the start of trading. The software was initially deployed to manage voice over IP services. Financial parameters were not released.
Tower Semiconductor Ltd. (Nasdaq: TSEM), an Israeli-based maker of integrated circuits, has accepted orders for approximately $40 million of long term bonds with an average duration of 5.6 years from Israeli institutions, it said this morning. The funding will allow Tower Semiconductor to increase its manufacturing capacity. Also included in the offer were 5,800 warrants, each exercisable for four years. Shares moved up $0.02, or 1%, to finish at $1.58.
