Stocks turn flat
After a morning bounce stocks are trading close to the flat line this afternoon, while the price of oil dropped more than one dollar. In small-cap action, shares of PeopleSupport, Inc. (Nasdaq: PSPT) are sagging on news an analyst lowered the company’s target price, but reports of healthy profit margins boosted Rockford Corp. (Nasdaq: ROFO).
At 2:26 p.m. ET the Russell 2000 had gained 0.17 points, or 0.02 percent, to 829.04. The Dow Jones Industrial Average was up 2.60 points, or 0.02 percent, to 13,243.98, on track for another record close.
Shares of Tempe, Ariz.-based Rockford Corp. are gaining following news of an increase in quarterly gross margins and a decline in expenses. The gross margin for the three months ended March 31 increased to 29.9%, compared with 26.3% during the same period of 2006, the manufacturer of mobile audio systems said after Thursday’s close. Rockford president William R. Jackson attributed the improvement to the ongoing outsourcing of production. Shares are up $0.44, or 21%, to $2.54
JMP Securities lowered the target price for shares of offshore business process outsourcing provider PeopleSupport, Inc. The analyst lowered the target price of the Los Angeles-based company to $17 from $19 due to the loss of a key client, according to a research note published after Thursday’s close. However, the investment bank reiterated its “market outperform” rating. The stock is down $0.05, or 0.4%, to $11.88.
Shares of Elmsford, N.Y.-based BioScrip, Inc. (Nasdaq: BIOS) are surging on news of a profit increase. Gross profit for the quarter ended March 31 was $32.9 million, an increase of 8.5% when compared with gross profit of $30.3 million, the pharmaceutical company reported before market open. Shares are up $0.79, 22%, to $4.36.
In consumer news, U.S. gasoline prices have passed the $3.00 per gallon threshold as refinery problems have strained supply. American refiners are struggling to adjust production in compliance with new “green” standards for more environmentally-friendly gasoline.
Meanwhile, the price of oil has fallen more than a dollar, currently trading at below $62 a barrel.
