Small drop for Russell 2000
The small-cap Russell 2000 index joined the other major U.S. indices in losing ground as investors consolidated their gains in anticipation of Wednesday’s meeting of the Federal Reserve. Among specific small-cap stocks, Cutera, Inc. (Nasdaq: CUTR) said its net income missed expectations, while Playboy Enterprises Inc. (NYSE: PLA) reported a strong first quarter.
The Russell 2000 lost 0.97 points, or 0.12 percent, to 830.90. The Dow Jones Industrial Average snapped its five-day winning streak, losing 3.90 points, or 0.03 percent, to 13,309.07.
Shares of Georgetown, Mass.-based UFP Technologies, Inc. (Nasdaq: UFPT) dropped $0.80, or 13%, to $5.60, after news of a fall in earnings. The net income for the quarter ended March 31 was $0.52 million, or $0.09 per share, compared with $0.57 million, or $0.11 per share in the same quarter of 2006, the maker of packaging and component products announced before the start of trading. Analyst estimates were not available.
Hugh Hefner’s Playboy Enterprises Inc. reported before the opening bell that its first-quarter net income improved. The net income for the quarter ended March 31 was $1.5 million, or $0.04 per share, compared with net income of $0.8 million, or $0.02 per share, during the first three months of 2006. That beats Wall Street’s projected earnings of $0.01 per share. Playboy said that increase was primarily due to a rise in licensing income. Shares moved up $0.91, or 9%, to $11.06.
Brisbane, Calif.-based Cutera, Inc. saw its stock price decrease on news the company’s second quarter forecast fell short of analysts’ expectations. Earnings for the quarter ended June 30 are projected at $0.08 per share on revenue of $23 million, the provider of laser and other light-based aesthetic systems said after Monday’s close. Analysts were looking for net income of $0.30 per share on $27.5 million in revenue. Shares closed at $23.40, down $5.84, or 20%.
In business news, shares of Hewlett-Packard Co. (NYSE: HPQ) gained more than one percent on news the world’s largest PC maker reported second-quarter earnings above Wall Street’s expectations due to strong sales of home computers and servers.
The only major economic data released today was a report by the U.S. Commerce Department that showed inventories at U.S. wholesalers rose 0.3% in March. Economists were forecasting a rise of 0.6%.
