Russell lags as Dow nears record
April 17 (SmallCapInvestor.com) – The Dow almost set a new closing record high today following news of low core inflation and stronger-than-expected home construction data. Small caps did not fare as well, with shares of teeth whitening company BSML Inc. (Nasdaq: BSML) falling on news of a possible delisting, while InsWeb Corporation’s (Nasdaq: INSW) doubled its stock price after reporting its first ever profit.
The Russell 2000 failed to improve after Monday’s record close, losing 2.48 points, or 0.30 percent, to 828.96. The Dow Jones Industrial Average was unable to set a new closing record despite adding 52.58 points, or 0.41 percent, to 12,773.04. The record is 12,786.64, set on Feb.20.
Shares of Gold River, Calif.-based InsWeb Corporation went through the roof on news the company reported its first quarterly profit. Revenues for the three months 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 shot up $3.92, or 118.43%, to $7.23.
Shares of Walnut Creek, Calif.-based BSML dropped on news the teeth whitening technology company is not in compliance with Nasdaq rules. BSML’s stockholder equity is $2.48 million and the market capitalization is $15.3 million, the company said after Monday’s close. The Nasdaq requires companies to have a minimum of $2.5 million in stockholders’ equity, or a market value of $35 million. The Nasdaq will delist BSML on April 23 unless the company decides to file an appeal. Shares fell $0.15, or 12.30%, to close at $1.07.
San Francisco-based biopharmaceutical company Novacea, Inc. (Nasdaq: NOVC) gained ground after announcing before the opening bell that its drug candidate is effective against tumors. The drug AQ4N can penetrate oxygen-starved regions of tumors that are normally difficult to reach, the company said. The preclinical study was conducted at Princess Margaret Hospital at the University of Toronto and presented at the annual meeting of the American Association for Cancer Research. Shares rose $1.32, or 19.70%, to end at $8.02.
Economic figures released today show that U.S. inflation is easing.
Core inflation in March rose just 0.1% despite a rise in gasoline prices, the Labor Department said before the opening bell. Overall, consumer prices in March increased 0.6% following 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.
In other economic news, the Labor Department reported before the opening bell that 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 forecasting 1.50 million housing starts.
The Russell 2000 failed to improve after Monday’s record close, losing 2.48 points, or 0.30 percent, to 828.96. The Dow Jones Industrial Average was unable to set a new closing record despite adding 52.58 points, or 0.41 percent, to 12,773.04. The record is 12,786.64, set on Feb.20.
Shares of Gold River, Calif.-based InsWeb Corporation went through the roof on news the company reported its first quarterly profit. Revenues for the three months 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 shot up $3.92, or 118.43%, to $7.23.
Shares of Walnut Creek, Calif.-based BSML dropped on news the teeth whitening technology company is not in compliance with Nasdaq rules. BSML’s stockholder equity is $2.48 million and the market capitalization is $15.3 million, the company said after Monday’s close. The Nasdaq requires companies to have a minimum of $2.5 million in stockholders’ equity, or a market value of $35 million. The Nasdaq will delist BSML on April 23 unless the company decides to file an appeal. Shares fell $0.15, or 12.30%, to close at $1.07.
San Francisco-based biopharmaceutical company Novacea, Inc. (Nasdaq: NOVC) gained ground after announcing before the opening bell that its drug candidate is effective against tumors. The drug AQ4N can penetrate oxygen-starved regions of tumors that are normally difficult to reach, the company said. The preclinical study was conducted at Princess Margaret Hospital at the University of Toronto and presented at the annual meeting of the American Association for Cancer Research. Shares rose $1.32, or 19.70%, to end at $8.02.
Economic figures released today show that U.S. inflation is easing.
Core inflation in March rose just 0.1% despite a rise in gasoline prices, the Labor Department said before the opening bell. Overall, consumer prices in March increased 0.6% following 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.
In other economic news, the Labor Department reported before the opening bell that 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 forecasting 1.50 million housing starts.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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