Another record for Russell 2000
The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) closed at new record highs on news of better-than-expected rise in U.S. July consumer sentiment. The small-cap index added 0.59 points, or 0.07%, to a new record close of 855.77. The Dow gained 45.52 points, or 0.33%, to a record close of 13,907.25. Both indices previously set records on July 12.
The day began with news that June retail sales fell 0.9%, according to the U.S. Commerce Department. Economists were forecasting a drop of 0.1%. Retail sales added 1.5% in May.
Numbers on import prices, which also came out before the start of trading, showed a rise of 1% in June, the Labor Department reported. That’s more than economists’ forecast increase of 0.6% and a result of higher fuel costs and strong worldwide economic growth.
Import prices have added 2.3% on a year-over-year basis.
A long-term rise in important prices would suggest that the United States can no longer rely on cheap imports to hold down domestic inflation.
Investors had to wait until after the start of trading for good news, which came in the form of the monthly University of Michigan consumer sentiment index. The index rose to 92.4 in July from 85.3 in June. Observers were calling for it to climb to 86. The higher the reading, the more inclined consumers are to spend money.
Among specific small-cap companies:
Shares of Qiao Xing Universal Telephone, Inc. (Nasdaq: XING) added $1.74, or 14%, to $13.95 on news before the opening bell that a mobile handset owned by one of its subsidiaries received the highest rating in a review of security handsets by a consumer electronics publication in China. The Chinese seller of telecommunications equipment also said that it will file its annual report for 2006 on July 16.
Shares of Idenix Pharmaceuticals, Inc. (Nasdaq: IDIX) ended the day firmly in the losers’ column, down $2.22, or 38%, to $3.57, on news the Cambridge, Mass.-based company is putting on hold the development of its hepatitis C drug. Discussions with the U.S. Food and Drug Administration have led to the conclusion that the overall risk/benefit profile of the drug valopicitabine does not justify further research, Idenix said before the start of trading.
Spokane, Wash.-based Idaho General Mines Inc. (AMEX: GMO) announced before the opening bell that Robert Dumont, Executive VP of Business Development and VP of Finance, will leave the mineral development company. CEO Bruce Hansen assured investors that Idaho General Mines will stay focused on its two molybdenum deposit projects in Nevada. Molybdenum is a chemical element with a high melting point that is often used in high-strength steel alloys. Shares added $0.58, or 8%, to close at $8.14.
The day began with news that June retail sales fell 0.9%, according to the U.S. Commerce Department. Economists were forecasting a drop of 0.1%. Retail sales added 1.5% in May.
Numbers on import prices, which also came out before the start of trading, showed a rise of 1% in June, the Labor Department reported. That’s more than economists’ forecast increase of 0.6% and a result of higher fuel costs and strong worldwide economic growth.
Import prices have added 2.3% on a year-over-year basis.
A long-term rise in important prices would suggest that the United States can no longer rely on cheap imports to hold down domestic inflation.
Investors had to wait until after the start of trading for good news, which came in the form of the monthly University of Michigan consumer sentiment index. The index rose to 92.4 in July from 85.3 in June. Observers were calling for it to climb to 86. The higher the reading, the more inclined consumers are to spend money.
Among specific small-cap companies:
Shares of Qiao Xing Universal Telephone, Inc. (Nasdaq: XING) added $1.74, or 14%, to $13.95 on news before the opening bell that a mobile handset owned by one of its subsidiaries received the highest rating in a review of security handsets by a consumer electronics publication in China. The Chinese seller of telecommunications equipment also said that it will file its annual report for 2006 on July 16.
Shares of Idenix Pharmaceuticals, Inc. (Nasdaq: IDIX) ended the day firmly in the losers’ column, down $2.22, or 38%, to $3.57, on news the Cambridge, Mass.-based company is putting on hold the development of its hepatitis C drug. Discussions with the U.S. Food and Drug Administration have led to the conclusion that the overall risk/benefit profile of the drug valopicitabine does not justify further research, Idenix said before the start of trading.
Spokane, Wash.-based Idaho General Mines Inc. (AMEX: GMO) announced before the opening bell that Robert Dumont, Executive VP of Business Development and VP of Finance, will leave the mineral development company. CEO Bruce Hansen assured investors that Idaho General Mines will stay focused on its two molybdenum deposit projects in Nevada. Molybdenum is a chemical element with a high melting point that is often used in high-strength steel alloys. Shares added $0.58, or 8%, to close at $8.14.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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