Small gains on Wall Street
The Russell 2000 and Dow are just above the flat line following news that U.S. factory orders fell less then expected in May. At 11:24 a.m. ET the Russell 2000 was up 1.88 points, or 0.22%, to 846.94. The Dow Jones Industrial Average had gained 32.44 points, or 0.24%, to 13,567.87.
Shares of AVANIR Pharmaceuticals (Nasdaq: AVNR) are rising following news that it has signed an agreement to sell antipsychotic drug FazaClo to Irish specialty pharmaceutical company Azur Pharma. AVANIR will receive approximately $42 million at the close of the transaction with up to $10 million in additional payments in 2009, the Aliso Viejo-based company said before the start of trading. The agreement is expected to be finalized in August. The stock is up $0.37, or 16%, to $2.74.
San Francisco-based Handheld Entertainment, Inc. (Nasdaq: ZVUE) said before the opening bell that on June 27 it issued a total of $1.425 million principal amount of 8% unsecured notes due July 31, 2007. “These funds provide the company with flexibility to execute its business plan and continue to explore acquisitions,” CEO and President Jeff Oscodar said. The digital entertainment company reported that it will use to proceeds to fund future acquisitions and cover general working expenses. Shares are down $0.55, or 21%, to $2.03.
Shares of Bellevue, Wash.-based First Mutual Bancshares, Inc. (Nasdaq: FMSB) are up $3.60, or 16%, to $25.98, on news the bank holding company is being purchased by Washington Federal, Inc. (Nasdaq: WFSL) for $189.8 million in cash and stock. According to the agreement announced after Monday’s close, First Mutual Bank and its thirteen branch locations will merge into Washington Federal Savings. The combined entity will have 148 offices in eight western states with total assets of roughly $11 billion and total deposits of about $6.8 billion. The merger is expected to close in the fourth calendar quarter of 2007.
In economic news, May U.S. factory orders decreased 0.5%, the Commerce Department said after the start of trading. However, that beat economists’ projections of a 1.2% drop. Factory orders increased 0.5% in April.
The transportation orders fell 6.9%, helping push down overall factory orders.
On the plus side, orders for motor vehicle bodies and parts rose 3.5%. Orders for ships and boats gained 48.9%.
