Small caps continue downward slide
Small-cap stocks began Friday’s trading session higher, but are skidding into the red after figures from the University of Michigan showed American consumer sentiment at a 26-year low. At 1:43 p.m. ET, the Russell 2000 (NYSE:IWM) was down 3.35, or 0.47%, at 713.72.
Among small caps, Progenics Pharmaceuticals, Inc. (Nasdaq:PGNX) is up 30% after the Tarrytown, N.Y.-based company’s constipation drug won FDA approval. YRC Worldwide Inc. (Nasdaq:YRCW) is up about 29% after the transportation services company said early Friday that it expects second-quarter profit in-line with Wall Street expectations. Wilshire Bancorp, Inc. (Nasdaq:WIBC) is up 17% after the Los Angeles-based community bank posted first-quarter net income of $7.1 million, or $0.24 per share, compared with analysts’ expectation of earning $0.20 per share.
Among small-cap losers, shipping and logistics company Horizon Lines, Inc. (NYSE:HRZ) is down about 18% after cutting its 2008 forecast due to weakness in Puerto Rico. Acacia Research-Acacia Technologies (Nasdaq:ACTG) is down 18% after the Newport, Calif.-based company, which develops, acquires, licenses and enforces patented technologies, reported a first-quarter loss of $3.9 million, or $0.14 per share, versus Wall Street’s expectation of losing $0.07 per share. Bottomline Technologies (Nasdaq:EPAY) is down about 16% after Canaccord Adams lowered its price target on the company. “While we point out that Bottomline's management team is conservative, the fact remains that it may take time to consolidate Optio and drive the cross-sell into Optio's customer base that makes the acquisition attractive,” Canaccord said in a note to investors.
From a sector standpoint, footwear, catalog and mail-order retail, and plastics and rubber chemical are gaining. Computer-storage devices, advertising services and non-apparel textiles are losers in midday Friday trading.
The Russell was moving toward 724 — its important long-term resistance — during the first hour of trading, but has dipped below 715 since around 11 a.m. ET.
