Wall Street rising
The Russell 2000 and the other major U.S. indices are up on news an index of core inflation is within the U.S. Federal Reserve’s preferred range. At 11:38 a.m. ET the Russell 2000 was up 5.78 points, or 0.69%, to 844.81. The Dow Jones Industrial Average was up 68.69 points, or 0.51%, to 13,490.97.
Shares of Comstock Homebuilding Companies, Inc. (Nasdaq: CHCI) are rising on news the developer of residential real estate has completed the $47.5 million sale of its 316-unit Bellemeade condominium conversion project in Leesburg, Va., to an apartment operator. Comstock expects to generate $1.5 million in cash from the sale and will incur an additional write-off of about $2.0 million, the Reston, Va.-based company said after Thursday’s close. Shares are up $0.21, or 8%, to $2.82.
EpiCept Corp. (Nasdaq: EPCT) will raise $10 million from institutional investors through the sale of 5.1 million shares of its common stock. The price has been pegged at $1.95 per share, the Tarrytown, N.Y.-based pharmaceutical company said before the start of trading. EpiCept will also issue five-year warrants to purchase up to approximately 2.56 million shares of common stock at an exercise price of US$2.93 per share. The stock is down $0.35, or 14%, to $2.09.
Shares of Collectors Universe, Inc. (Nasdaq: CLCT) are appreciating, up $1.30, or 9%, to $15.47, following news the Santa Ana, Calif.-based outfit has decided to increase its quarterly cash dividend to $0.25 per share per quarter. The new dividend will be effective for the quarter ending September 30, the Newport Beach, Calif.-based provider of authentication and grading services for high-value collectibles said before the start of trading. The previous regular cash dividend per quarter was $0.12 per share.
The bulls came out to play this morning following news that the price index for personal consumption expenditures, a key inflation indicator, rose just 0.5% in May.
The core index, which excludes food and energy, added a tiny 0.1% in May, according to the U.S. Commerce Department. The index is up just 1.9% from a year earlier.
That’s the lowest year-over-year reading in more than three years and a sign that core inflation is easing. Federal Reserve Chairman Ben Bernanke has in the past said that he prefers core inflation to stay in the range of 1 percent to 2 percent.
In other economic news, the Reuters/University of Michigan index of consumer sentiment fell to 85.3 in June, down from 88.3 in May. That’s the lowest reading in 10 months and a sign that high gasoline prices and a drop in home values are taking their toll.
Elsewhere, personal income rose at a rate of 0.5% in May, below the expected rise of 0.6%. Consumer spending also missed expectations, rising 0.5%, instead of 0.7%, in May.
