Small caps stay higher
The Russell 2000 (NYSE: IWM) is posting gains midway though the session, buoyed by earnings news. At 1:34 p.m. ET, the small-cap index had added 8.66 points, or 1.07%, to 814.77. The Dow Jones Industrial Average (INDU) was up 78.12 points, or 0.57%, to 13,750.04.
Trading began on a bullish note as investors responded to news that Microsoft Corp.’s (Nasdaq: MSFT) first-quarter earnings beat Wall Street’s projections. The Redmond, Wash.-based company posted a stunning 87% growth in its entertainment and devices segment, primarily due to strong sales of its video game “Halo.”
Meanwhile, Countrywide Financial Corp. (NYSE: CFC), the largest mortgage lender in the United States, said that it will return to profitability in the fourth quarter and outpace projections after taking a hit in the third quarter due to the meltdown in the subprime mortgage sector this summer.
In small-cap news, industrial products maker Graham Corp. (AMEX: GHM) increased its quarterly profit seven-fold, while Gulf Island Fabrication, Inc. (Nasdaq: GIFI) stumbled after missing analysts’ third-quarter profit expectations.
Elsewhere, the U.S. dollar has fallen to another all-time low against the euro. One greenback can now be exchanged for 0.695 of the currency adopted by 13 countries in the 27-member European Union. This morning the dollar was at 0.698 euros.
The weak dollar is contributing to another rise in the price of oil, which is denominated in the U.S. currency. A barrel of oil now costs $90.99, up $0.53. Earlier in the day the price of oil was closer to $92 a barrel.
Contributing to latest increase in the price of oil is news on Thursday of U.S. sanctions against Iran and a shutdown of some production in Nigeria, Africa’s largest exporter. Oil reached its all-time inflation adjusted high of $101.70 in April 1980.
Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:
Biggest percentage gainers:
• Triad Guaranty Inc. (TGIC), up 34%.
•Graham Corp. (GHM), up 20% on news of a steep rise in second-quarter profit.
• DXP Enterprises Inc. (DXPE), up 15% on news of a rise in third-quarter profit.
Biggest percentage losers:
• Trident Microsystems Inc. (TRID), down 42% on news of an analyst downgrade and a quarterly profit miss.
• Online Resources Corp. (ORCC), down 33% on news of a poor fourth-quarter outlook.
• Clayton Holdings Inc. (CLAY), down 22% on news of a third-quarter loss.
