Stocks posting small gains
April 17 (SmallCapInvestor.com) – Stocks are posting small gains this morning following news of stronger-than-expected home construction in March and an easing of inflation. Among small caps, weak quarterly sales are hurting shares of Universal Forest Products, Inc. (Nasdaq: UFPI), while InsWeb Corporation (Nasdaq: INSW) is surging after reporting its first ever profit.
At 10:50 AM the Russell 2000 was down 0.56 points, or 0.07 percent, to 830.88. The Dow Jones Industrial Average had gained 57.13 points, or 0.45 percent, to 12,777.59.
Shares of computer memory subsystems manufacturer Netlist, Inc. (Nasdaq: NLST) are losing ground on news preliminary first-quarter results fell short of Wall Street’s expectations. Earnings per share for the quarter ended March 31 will be between $0.02 and $0.03, compared with a previous forecast of earnings of $0.07 to $0.08 per share, the Irvine, Calif.-based company said after Monday’s close. Analysts polled by Thomson Financial were looking for earnings of $0.08 per share. Netlist attributed the decline to lower-than-expected volume from two large customers. Shares are down $1.62, or 27.14%, to $4.35.
Shares of Gold River, Calif.-based InsWeb Corporation are soaring following news the company has reported the first quarterly profit in its history. Revenues for the quarter ended March 31 were $8.11 million, compared with $7.66 million a year earlier, the online insurance marketplace operator said after Monday’s close. Net income for the first quarter was $0.4 million, or $0.10 per share, compared with a net loss of 1.7 million, or $0.41 per share in the same quarter a year ago. Analyst estimates were unavailable. Shares are up $2.19, or 66.16%, to $5.50.
Grand Rapids, Mich.-based Universal Forest Products reported a decrease in quarterly earnings and sales attributed to a slowdown in the housing market. Net sales in the first quarter of 2007 were $549.0 million, compared with $665.6 million for the same period in 2006, the company said after Monday’s close. Wall Street was looking for revenue of $589.52 million. Net earnings were $3.9 million, down from $15.9 million a year earlier. Shares are down $3.57, or 6.78%, to $49.05.
Core inflation in March was almost flat despite a rise in gasoline prices, the Labor Department said before the opening bell. Overall consumer prices increased 0.6% in March, after a rise of 0.4% in February. Economists were expecting the consumer price index to rise by 0.7%. However, core inflation, which excludes food and energy costs, rose just 0.1% during the previous month. That’s the smallest gain this year. Core prices increased 0.2% in February.
The data indicate a cooling economy is easing pricing pressures.
In other economic news, the residential construction market showed life in March, the Labor Department reported before the start of trading. The construction of new homes increased 0.8% in March to a seasonally adjusted rate of 1.518 million, the highest rate this year. Economists were expecting 1.50 million housing starts.
