Russell takes a break
The major U.S. indices lost ground today on news the Federal Reserve remains concerned about inflation. The Russell 2000 shed 6.82 points, or 0.80%, to finish at 848.27, after four consecutive record closes. The Dow Jones Industrial Average dropped 80.86 points, or 0.59%, to 13,595.46.
Shares of Inovio Biomedical Corp. (AMEX: INO) ended the day among the losers following news after the opening bell that the San Diego-based company will stop further patient enrollment in its two Phase III studies of a drug to treat head and neck cancer. The firm cited concerns of serious adverse consequences, including higher mortality rates, as the reason. Shares fell $1.23, or 36%, to close at $2.20.
Heat transfer equipment maker Graham Corp. (AMEX: GHM) achieved a record fourth-quarter net income of $3.4 million, or $0.86 per share, compared with a profit of $1.0 million, or $0.25 per share, in the same three months of 2006, the Batavia, N.Y.-based company said after the start of trading. Sales for the fourth quarter ended March 31 were $20.8 million, an increase of 31% compared with revenues of $15.9 million a year earlier. Analyst estimates were unavailable. The stock gained $5.01, or 28%, to end the day at $23.19.
Shares of casino hotel operator Trump Entertainment Resorts, Inc. (Nasdaq: TRMP) lost $1.12, or 7%, to $14.94, on news of an analyst downgrade. Investment bank Bear, Stearns & Co. Inc. lowered its rating to “underperform” from “peer perform,” citing concerns that the company will not find a buyer that the stock is trading above its fundamentals, according to news reports before the market open.
U.S. began the day with a drop following comments by Federal Reserve Chairman Ben Bernanke that inflation remains a concern even though it is likely to moderate in the coming months. However, the U.S. economy should expand along the expected trend line.
Investors interpreted the remarks, which were prepared for a banker’s meeting in South Africa, as an indication that the Fed is not mulling an interest rate cut.
Elsewhere, the U.S. services industries posted solid growth in May. The Institute for Supply Management’s index of non- manufacturing businesses rose to 59.7, the not-for-profit association reported today. A reading above 50 shows growth.
