Strong rebound for Russell 2000
The Russell 2000 and other U.S. indices bounced back to snap a three-day losing streak on news of an unexpected narrowing of the U.S. trade deficit. The Russell 2000 gained 9.99 points, or 1.21%, to finish at 835.31. The Dow Jones Industrial Average added 157.66 points, or 1.19%, to 13,424.39.
The U.S. trade deficit surprisingly fell 6.2% to $58.50 billion in May, the Commerce Department reported. Economists were expecting a deficit of $63 billion.
However, America’s trade deficit with China increased 12% to $19.37 billion, from $17.25 billion in March.
Elsewhere, bond yields on 10-year Treasury notes closed at 5.11% today. Yields broke 5% on Thursday for the first time since August, causing a sharp sell-off.
Among specific small-cap companies:
Shares of Herley Industries, Inc. (Nasdaq: HRLY), which supplies microwave products and systems to defense and aerospace clients, ended the day among the winners following news quarterly profit more than doubled. The net income for the quarter ended April 29 was $3.9 million, or $0.27 per share, compared with net income of $1.7 million, or $0.11 per share, for third quarter of 2006, the Lancaster, Pa.-based company said after Thursday’s close. Four analysts polled by Thomson Financial had projected earnings of $0.25 per share. The stock added $1.81, or 11%, to close at $17.82.
Shares of Acorda Therapeutics, Inc. (Nasdaq: ACOR) slipped $0.56, or 3%, to $18.39, on news before the opening bell that the Hawthorne, N.Y.-based company has entered into an underwriting agreement relating to the sale of 3.75 million shares of its common stock at $18.50 per share. That’s 2.4% discount on the stock’s Thursday closing price. Acorda said it will use the proceeds to cover expenses associated with a Phase III clinical trial of its multiple sclerosis drug Fampridine-SR.
Redwood City, Calif.-based Cardica, Inc. (Nasdaq: CRDC) will receive $11.9 million from the sale of 2.3 million shares of its common stock to investors, the company said after Thursday’s close. The manufacturer of systems for coronary artery bypass graft will also issue warrants for the purchase of 575,347 additional shares of its common stock with an exercise price of $5.65 per share. The stock added $0.56, or 11%, to settle at $5.58.
