The rally continues
U.S. stocks are holding on to their gains despite news of a drop in April existing home sales. At 11:29 a.m. ET the Russell 2000 was up 5.26 points, or 0.64%, to 829.06. The Dow Jones Industrial Average was up 49.98 points, or 0.37%, to 13,491.11.
Shares of Gaithersburg, Md.-based Iomai Corp. (Nasdaq: IOMI) are falling following news its patch-based vaccine for seasonal influenza is less effective than an injected vaccine. In a Phase I clinical trial a 353-patient study showed that Iomai’s needle-free vaccine patch produced an immune response lower than that producer by an injected intramuscular vaccine, the pharmaceutical company said before the start of trading. Shares are down $1.63, or 38%, to $2.61.
Biopharmaceutical company Tercica, Inc. (Nasdaq: TRCA) has received approval from the European Union’s European Medicines Agency for the injected solution Increlex, which treats growth failure in children and adolescents, the Brisbane, Calif.-based company said before market open. Tercica expects to be granted market authorization within two to three months, upon which it will receive a milestone payment of about $20 million from its European partner Ipsen. Shares have gained $0.41, or 6%, to $7.01.
Shares of GSI Technology, Inc. (Nasdaq: GSIT) have lost $0.85, or 15%, to $4.65, on news the Santa Clara, Calif.-based maker of products used in networking and telecommunications equipment projected second quarter earnings that fell short of analysts’ expectations. The net income for the second quarter ended June 30 will be between $0.04 per share and $0.05 per share, the company said before the start of trading. That’s below Wall Street’s estimated net income of $0.06 per share. GSI Technology also said that net income for the period ended March 31 was $1.4 million, or $0.06 per share, compared with a net income of $1.3 million, or $0.06 per share, in the comparable period of 2006.
Sales of existing U.S. homes fell 2.6% in April to an annualized rate of 5.99 million, the National Association of Realtors said after the market open. Economists were expecting a sales rate of 6.18 million.
The figures represent the steepest drop in four years and indicate that the housing sector is not yet out of the doldrums.
