Tag - NYSE:RT

Stocks opened in the green this morning and have held their own through Thursday afternoon on news that Wells Fargo issued a surprise profit announcement.

At 12:25 pm ET, the Russell 2000 (NYSE:IWM) is up 18.34, or 2.64%, at 460.46, while the Dow is up 2.22% and the S&P 500 is up 2.53%.

New employment data out today did little tamper the strong rally. New jobless claims fell more than expected to 654,000, while continuing claims set an 11th straight record. The total number of laid-off Americans receiving unemployment rose to 5.84 million, from 5.75 million, the most on record since 1967.

Small-cap A-Power Energy Generation Systems (Nasdaq:APWR) is up a whopping 33% after reporting a surge in Q4 profits. Cardiome Pharma (Nasdaq:CRME) is also up 24% after announcing a licensing agreement for Vernakalant, an investigational candidate for the treatment of atrial fibrillation.

******The minutes from the last FOMC meeting were released Wednesday. You might recall that was the meeting where Fed Chairman Ben Bernanke announced that the Federal Reserve would start buying $1.13 trillion worth of Treasury bills, corporate bonds and consumer debt.

Bernanke didn’t say at the time he was proposing the biggest Fed balance sheet expansion in history, but the members of the Fed lowered their estimates for economic recovery significantly.

The Fed had expected growth to return in the second half of this year and unemployment to top out around 8.8%. At the last meeting, dismal numbers from the start of 2009 prompted recovery expectations to be pushed into 2010, along with upward adjustments in unemployment number expectations.

It makes sense that the Fed took a more negative view of the economy. Why else would it take such a radical step as the balance sheet expansion? And I’ve been saying all along that unemployment will hit double digits before this recession is over.

What is interesting is what the Fed will say next. Bernanke has made some bullish comments over the last few weeks—comments that are somewhat contrary to the minutes from the last FOMC meeting. Perhaps Bernanake was just talking . . .

Small-cap stocks pushed lower, pressured by concerns about corporate profits, worries about late holiday spending results and ongoing jitters about the economy and the credit crisis. Losses were limited by optimism about stimulus plans for 2009 and persistent bargain hunting from market watchers who believe the bottom has already been made.  Some of today’s small-cap gainers are Fuel Systems Solutions (Nasdaq:FSYS), American Capital Agency (Nasdaq:AGNC) and Flow International (Nasdaq:FLOW).

Other Market Watch highlights today included:

•Even though chipmakers were higher in European trading, tech stocks were underperforming both the Dow and small caps.  
• Citigroup analysts said that they remain underweight on utilities, autos and real estate investment trusts.
• The greenback remained down against the euro, which could underpin various commodity markets today.  
• Copper prices rose 4% in London trading, bolstered by a dip in the U.S. dollar vs. the euro & by news of a jump in China imports during November.

Small Cap Gainers:

• Fuel Systems Solutions up 5.13% in pre-market after analysts initiate coverage on Friday of the small cap with a "buy." See (Nasdaq:FSYS).  
• American Capital Agency up 3% in pre-market after declaring a $1.20 Q4 dividend. See (Nasdaq:AGNC). 
• Flow International 2% higher today after an analyst last week upgraded the small cap from "buy" to "strong buy," citing new 10Q financial reports. See (Nasdaq:FLOW).  
• Rackspace Hosting Inc. opened higher on light volume after taking a big hit Friday. See (NYSE:RAX).  

Small Cap Losers:

• Grey Wolf Inc. gapped lower and tumbled 40% to 52-week lows. See (NYSE:GW).  
• Brown Shoe Company Inc. fell 10%, giving part of a huge rally from Friday. See (NYSE:BWS). 
• Accuray down 7% after swinging to a Q1 loss on Friday. See (Nasdaq:ARAY).
• Ruby Tuesday announces multiple store closures and $70 million anticipated loss in 2009; shares dip 4.4%. See (NYSE:RT).  

Small-cap stocks held in higher ground through midday trading, with commodity names bolstered by a rise in oil prices while money flow into stocks was supported by a strong U.S. dollar and soft credit instruments. At 12:50 p.m. ET, the Russell 2000 (NYSE:IWM) was up 3.58, or 0.50%, at 724.12. Small caps were outperforming other index products, buoyed by gains in small energy names.

Energy stocks were also providing the biggest boost to large caps, with Exxon Mobil Corp. (NYSE:XOM) up 0.9% and Anadarko Petroleum Corp. (NYSE:APC) surging 5% as the firm announced plans for a $5 billion share buy-back program.

This morning’s rush of economic data in the United States on housing and consumer confidence brought a mixed picture, with the housing market still sinking, but consumer confidence climbing above market expectations. Still, confidence is low historically, and likely got a lift from the pullback in gasoline pump prices in recent weeks. If crude oil starts to climb back above $120 and higher, then a new crisis of confidence could be just around the corner.

Speaking of crude oil, the market for black gold was up about $0.75 a barrel, slipping back below $116 dollars, down from the $117 level on the morning highs. The energy market is reluctant to get carried away on the sell side right now until they get a better picture of how Hurricane Gustav will track through the Gulf of Mexico in the coming days. Meanwhile, the U.S. dollar remained strongly higher against the euro, up about 0.8%, near the highest point since February.

It should be noted that volume on today’s stock market trading has been light, with many traders on holiday to enjoy the last few weeks of the summer season. In fact, the move so far today in the Russell has been confined to an inside session of the more dynamic decline from Monday … in trader parlance, it has something . . .

Small-cap stocks weathered several storms today to punch out a higher close as investors were able to look past a sudden reversal higher in crude oil futures, renewed credit crunch worries amid a collapse in mortgage finance stocks and safe-haven money flow into short-dated treasury products. Oversold conditions and bargain hunting spurred by merger activity were enough to pull small-cap stocks into the green. The Russell 2000 (NYSE:IWM) rose 6.68, or 1.01%, to 670.44.

Heading through midday trading, the market tried to carve out a modest recovery rally in the wake of Wednesday’s big collapse, but a sudden afternoon surge in crude oil prices stomped out bullish sentiment in equities — at least for a while. Crude oil prices charged more than $5 a barrel higher, climbing back above $141 on supply concerns out of Africa and Brazil and amid ongoing tension in the Middle East.

Workers in Brazil threatened to initiate a five-day strike next week, while a ceasefire in Nigeria threatened supply from Africa. Meanwhile, Iran said it has been test-firing more missiles, as a “lesson for enemies;” U.S. officials warned Iran that it would defend its allies. The potential for supply disruption and geopolitical tension was enough to spark the sudden resurgence in crude oil prices, which had tumbled some $10 a barrel off recent record highs.

S&P 500 futures actually made their daily high this morning before the regular market even opened, rising to highs in conjunction with a better-than-expected headline figure on the weekly jobless claims report. The report showed a decline in claims to 346,000 which was much better than the 395,000 forecast and a big improvement on last week’s 404,000 figure. However, there were some “devils in the details” of the data, which hinted that all is not well in the labor market.

“Continuing claims, which lag initial claims by one week, rose 91,000 to 3.202 million. The insured unemployment rate moved up to 2.4% from 2.3% in the prior week. The insured unemployment rate has held at 2.4% in three out of the last five weeks. The noticeable decline in initial claims is a distortion and is not an indicator of a market improvement in labor market conditions,” Asha Bangalore, economist . . .

Excel Technology Inc (Nasdaq:XLTC), Ruby Tuesday Inc (Nasdaq:RT) and First California Financial Group Inc (Nasdaq:FCAL) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Cato Corp (Nasdaq:CTR), Fundtech Ltd (Nasdaq:FNDT), Duckwall Alco Stores Inc (Nasdaq:DUCK), Metabolix Inc (Nasdaq:MBLX), InterVoice Inc (Nasdaq:INTV) and Renaissance Learning Inc (Nasdaq:RLRN).

Here are the biggest percentage gainers among small caps:

Ruby Tuesday Inc. (NYSE:RT) is soaring more than 16% today after two financial institutions raised the restaurant chain’s 2009 estimates. Cowen & Company announced ahead of the bell it was increasing 2009 earnings per share estimates to $0.60 per share, up from $0.50 a share. Also, Credit Suisse raised the estimates before the opening to $0.59 per share, up from $0.53. On Wednesday after the close, Ruby Tuesday reported a drop in fourth-quarter profits, but the results were better than analysts’ expectations. The Maryville, Tenn.-based company said it expects its fiscal year 2009 earnings per share between $0.50 and $0.70.

Today, shares of Ruby Tuesday are at $6.15, up $0.86 from Wednesday’s close. Shares have ranged from $5.07 to $26.83 during the past 52 weeks.

Small-cap stocks pushed higher in morning trade, overcoming ongoing fears about the credit crunch, particularly as they relate to slumping home financing providers Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE). At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was up 4.84, or 0.70%, at 668.39. Shortly after the open, FNM shares collapsed 16%, while FRE was down 18%.

Buyers in the stock market seemed to gain some confidence on news that Federal Reserve Chairman Ben Bernanke’s congressional testimony today will show that the central bank remains focused on financial market turmoil. Wire service reports said that Bernanke would push to let the government “liquidate” any major firm on the cusp of bankruptcy.

The morning seemed full of promise just one hour before the regular opening, with stock index futures charging higher on M&A news, an improved outlook from consumer barometer Wal-Mart (NYSE:WMT) and a bullish surprise on the headline weekly claims report. However, the market turned south about 30 minutes ahead of the open as the credit crunch jitters overtook investor psychology amid talk that FNM and FRE were approaching insolvency. Spreads traded on the firms in the debt market widened substantially after former Federal Reserve official William Poole said the firms may need to be bailed out.

Stock index futures made the overnight high when the weekly claims report came out at 346,000, which was much better than the forecast for 395,000, and which should have alleviated some of the recession fears fanned by last week’s stunning 404,000 claims report. However, continuing claims remained above 3 million, which underscores a difficult labor market picture.

Wal-Mart’s June same-store sales jumped 5.8%, which surpassed analyst expectations for a rise of 3.8%. The retailer followed up the strong sales news by raising their second-quarter outlook, which sparked a rally in overnight trading in WMT, but the stock was basically flat early on today after the open. There is some concern that the bump in WMT June sales may have been bolstered artificially by the fiscal . . .

Shares of Ruby Tuesday Inc. (NYSE:RT) are higher on news after the close on Wednesday that the casual dining restaurant chain reported third-quarter earnings that beat expectations. The Maryville, Tenn.-based company said that net income for the three months ended March 4 was $11.7 million, or $0.23 per share, while analysts were calling for $0.18 per share.

However, profit was $28.7 million, or $0.49 per share, a year earlier. At 11:01 p.m. ET, the stock had added $0.38, or 5%, to $8.26.

Shares of chain restaurant operator Ruby Tuesday, Inc. (NYSE: RT) are climbing after several executives and board members disclosed buying shares of the Maryville, Tenn.-based company after Monday’s closing. Together, four company insiders bought more than $2.28 million worth of share in the struggling restaurant operator.

Board members and executives, including CEO and President Samuel E. Beall III, purchased 381,500 shares on Friday and Monday for prices ranging between $5.93 and $6.10. As of Jan. 9, Ruby Tuesday has 51.71 million shares outstanding, with 96% of the shares being held by institutions.

Since hitting a high of $30.80, Ruby Tuesday’s stock has been down as much as 81% over the last 52 weeks.

On Friday, Kimberly Grant, Ruby Tuesday’s executive vice president, bought 6,000 shares at prices in the range of $5.95 to $6. CEO Beall bought 381,500 shares on Friday for prices between $5.94 and $6.

Also Friday, director Stephen Sadove snapped up 25,000 shares for prices of between $5.93 and $6. On Monday, Shannon Hepp, vice president of investor relations and planning, followed the trend by buying 500 shares at $6.10 a piece.

Investors have rallied around the reported insider trading, sending RT shares up 10.45%, or $0.60, at $6.34 in late afternoon trading. Over the last 52 weeks, shares have ranged from $5.70 to $30.80.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices rallied and ended the day in the green on news that the Fed may move to lower interest rates. The small-cap index added 8.09 points, or 1.14%, to 720.21, its second consecutive rise. The Dow Jones Industrial Average (INDU) advanced 117.78 points, or 0.92%, to 12,853.09.

On a year-to-date basis, the Russell 2000 has retreated 5.98%, while the Dow is down 3.10% and the S&P 500 has shed 3.27%.

Stocks small and large began the day in negative territory but rallied in the second half of the session and closed with solid gains.

“In light of recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary,” U.S. Federal Reserve chairman Ben Bernanke told an audience at the Women in Housing and Finance and Exchequer Club this afternoon.

Those words sparked speculation that the Fed is preparing to lower the federal funds rate at its two-day meeting starting Jan. 29. The bulls took charge of the session and pushed stocks higher.

The federal funds rate, the rate at which commercial banks make overnight loans to each other, currently stands at 4.25%.