Tag - NASDAQGS:PCLN

A good earnings report will go a long way toward improving a company's standing with investors. Take Travelzoo (Nasdaq: TZOO), for instance. After announcing earnings last Thursday the stock soared 28 percent.

Some sanity has returned following the one-day run however, and Travelzoo shares are again trading in the mid $80s. But considering the 12-month analyst consensus price target is $97.80, the pullback puts shares in a reasonable trading range right now.

Small-cap stocks pushed lower, pressured by news of soft earnings and by profit-taking from traders who caught Tuesday’s big rally. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 5.15, or 0.71% at 715.89.

Tech stocks were underpinned relative to other index products by surprisingly stout earnings from Cisco Systems Inc. (Nasdaq:CSCO), which was up 5% shortly after the open. Within the tech arena, Microsoft Corp. (Nasdaq:MSFT) was the beneficiary of positive analyst comments overnight and was up 1.5%.

However, the good news on big-cap techs was countered by big losses from a broad spectrum of companies. For example, Whole Foods Market Inc. (Nasdaq:WFMI), missed the earnings projection and tumbled 18% on the open. Also, priceline.com (Nasdaq:PCLN) was down 13% as the company had a cautious forward-looking statement. Freddie Mac (NYSE:FRE) dropped 13% on sloppy quarterly earnings and news that the firm will reduce its dividend.

Crude oil prices were on mildly firm footing this morning awaiting the weekly inventory report, which comes out near 10:35 a.m. ET. Energy prices have tanked in recent days, sinking over 19% from the summer peak to the recent low. The market is a little oversold on short-term momentum readings and vulnerable to a bounce. In addition, an explosion in a pipeline in Turkey and concerns about potential supply disruptions out of Africa were supportive elements in play. As for the inventory report, traders are looking for a build in crude oil stocks of about 300,000 barrels...

There have been graduations and degradations, but the results are in. Russell Investments has reconstituted its small-cap Russell 2000 (NYSE:IWM) index.

In an effort to maintain true representation of global equity markets and ensure changes in the market are accurately reflected, Russell Investments annually rebalances all of its indices, including the Russell 2000.

Through all the shuffling, health care saw the most action on the upside. Fifty-three health-care companies were invited to join the small-cap index, while 30 companies were ousted according to the Associated Press.

Biomarin Pharmaceutical (Nasdaq:BMRN), Hologic Inc. (Nasdaq:HOLX), Illumina Inc. (Nasdaq:ILMN), Inverness Medical Innovations Inc. (AMEX:IMA) and Perrigo Co. (Nasdaq:PRGO) graduated to the Russell 1000, Russell’s large-cap index, from the Russell 2000. PDL BioPharma Inc. (Nasdaq:PDLI), on the other hand, slid to the Russell 2000 from the Russell 1000.

Following the health care sector, the technology and consumer discretionary sectors saw the most additions to the Russell, while consumer discretionary also saw the most deletions, unsurprising with the strapped consumer.

Thirty-seven technology companies were added, while 24 were jettisoned. Ansys Inc. (Nasdaq:ANSS), Equinix Inc. (Nasdaq:EQIX), Flir Systems Inc. (Nasdaq:FLIR), Nuance Communications Inc. (Nasdaq:NUAN), On Semiconductor Corp. (Nasdaq:ONNN) and SAIC Inc. (NYSE:SAI) climbed to the Russell 1000 from the Russell 2000. Acxiom Corp. (Nasdaq:ACXM), Riverbed Technology Inc. (Nasdaq:RVBD), Sanmina-SCI Corp. (Nasdaq:SANM) and Verifone . . .

Travelzoo Inc. (Nasdaq: TZOO) shares are up on rumors of a takeover bid by Priceline.com Inc. (Nasdaq: PCLN). Neither company has commented on the market gossip. StreetInsider.com called the rumors “questionable.”

The rumors have stimulated aggressive option activity. October calls allowing investors to buy TZOO shares at $22.50 or $25 have been heavily traded.

In afternoon trading, TZOO shares are up 15.49%, or $3.08, at $22.97. Over the last 52 weeks, shares have ranged from $16.60 to $40.68.