Tag - ACIW

Palm Inc. (Nasdaq:PALM), Centennial Communications Corp. (Nasdaq:CYCL) and Diodes Inc. (Nasdaq:DIOD) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Osiris Therapeutics Inc. (Nasdaq:OSIR), Fuel Systems Solutions Inc. (Nasdaq:FSYS), Energy Conversion Devices Inc. (Nasdaq:ENER), ACI Worldwide Inc. (Nasdaq:ACIW), Bucyrus International Inc (Nasdaq:BUCY) and Eclipsys Corp. (Nasdaq:ECLP).

Zion Oil and Gas Inc. (Nasdaq:ZN), Astoria Financial Corp. (Nasdaq:AF) and Hanesbrands Inc. (Nasdaq:HBI) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Cogent Communications Group Inc. (Nasdaq:CCOI), DineEquity Inc. (Nasdaq:DIN), Greif Inc. (Nasdaq:GEF), ACI Worldwide Inc. (Nasdaq:ACIW), Willbros Group Inc. (Nasdaq:WG) and Western Alliance Bancorp (Nasdaq:WAL).

Small-cap stocks slipped Tuesday, pulled down by struggling financial sector shares and a profit-taking mentality following sizable gains the previous two sessions. The Russell 2000 (NYSE:IWM) was off 6.12, or 0.82%, at 744.94, while the Dow was down 1.19% at 11,642.47 and the S&P 500 was down 1.21% at 1,289.59. For the year, the IWM is down 2.75%, the Dow off 12.22% and the S&P 500 down 12.19%.

Small caps made a huge move during Monday’s rally relative to large-cap shares, fueled somewhat by ideas that a sinking U.S. dollar would stand to benefit smaller, domestic companies more than large multinationals who depend on sales to foreign customers. But even on today’s pullback, small caps still outperformed the Dow and S&P 500, reflecting investor taste for riskier fare and also on thoughts that previous similar economic cycles have benefited small caps over large-cap shares. However, the Russell was trumped today by the Nasdaq 100, as tech stocks put together a solid performance.

Tech stocks — and most equity indices in general — were underpinned on dips by a slide in crude oil prices, which slipped below $113 dollars a barrel for the first time in three months and eventually settled U.S. trading right near the $113 line. Demand destruction remains a concern for the energy market, as the Energy Information Administration today reported the largest drop in U.S. demand in 26 years, which countered some bullish supply concerns tied to the Russia/Georgia conflict. Elsewhere on the commodity front, gold price tumbled 1.7%, but the Commodity Research Bureau Index of 19 commodity markets was only off about 0.3%.

A recent surge in the U.S. dollar has played a key role in the decline of energy and other commodity prices, but today the greenback was relatively calm, failing to get a charge out of a surprisingly strong international trade report early this morning. The trade deficit narrowed to 56.7 billion dollars, which was better than the forecast for a deficit of 61.5 billion. Normally that would be enough to trigger more volatile response from foreign exchange traders, but with the dollar already soaring 7.5% . . .

The Russell 2000 (NYSE: IWM) is posting strong gains this afternoon. At 2:23 p.m. ET, the small-cap index had climbed 11.00 points, or 1.49%, to 750.06. The Dow Jones Industrial Average (INDU) was up 72.91 points, or 0.55%, to 13,240.11.

Small-cap stocks are comfortably above the flat line despite news of generally unimpressive economic reports.

The International Council of Shopping Centers announced before the start of trading that U.S. retailers saw chain store sales grow 1.4% for the week ending Dec. 15.

“Holiday shopping continues at a moderate pace with some consumers making fewer store visits due to gasoline prices and others just plain procrastinating on completing their shopping lists,” the global trade association said in a statement.

Sales have added 2.1% from the same week in 2006.

A slowdown in consumer spending, which is about 70% of gross domestic product, is one reason why many economists expect that U.S. economic growth will be low in the final quarter of 2007 and into 2008. Pessimists are even forecasting a recession.

The stagnating U.S. housing sector is another factor weighing on the economy.

The U.S. Census Bureau reported before the opening that housing starts in November declined 3.7%, while building permits, a sign of future construction, fell 1.5%.

Privately-owned housing completions in November fell 4.1% to an annual rate of 1,344,000, from a revised October estimate of 1,402,000.

So why are investors bullish?

Probably because Goldman Sachs Group Inc. (NYSE: GS) reported a rise in fourth-quarter profit. The New York-based investment bank, the largest in the world, had a quarterly net income of $3.17 billion, or $7.01 per share, well above analysts’ projected earnings of $6.61 per share.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are posting gains despite the latest negative news from the housing sector.
 
At 10:39 a.m. ET, the small-cap index had added 2.94 points, or 0.40%, to 742.00. The Dow Jones Industrial Average (INDU) was up 15.77 points, or 0.12%, to 13,182.97.

Stocks are posting solid gains as investors react to news that Goldman Sachs Group Inc. (NYSE: GS) reported a rise in fourth-quarter profit, beating Wall Street’s expectations.

The New York-based investment bank, the largest in the world, had a quarterly net income of $3.17 billion, or $7.01 per share, well above analysts’ projected earnings of $6.61 per share. During the previous fourth-quarter the company had a profit of $3.10 billion, or $6.59 per share.

Unlike many of its rivals, Goldman Sachs has not been seriously affected by the meltdown in the subprime mortgage sector, which picked up steam after U.S. home prices started to fall in the second half of 2006.

Speaking of the housing sector, the situation remains dire.

The U.S. Census Bureau reported before the start of trading that housing starts in November declined 3.7% to a seasonally adjusted annual rate of 1.187 million. That’s the slowest pace in 16 years. Economists were expecting single-family home construction to fall a little further to an annual pace of 1.180 million units.

November housing starts are 24.2% below the revised annual rate of 1,565,000 units in November 2006.

The Russell 2000 (NYSE: IWM) fell today as economic worries and concerns about the U.S. housing sector took to the forefront. The small-cap index dropped 14.87 points, or 1.97%, to 739.06. The Dow Jones Industrial Average (INDU) let go 172.65 points, or 1.29%, to 13,167.20.

On a year-to-date basis, the Russell 2000 is down 6.14%, while the Dow has gained 5.55% and the S&P 500 has advanced 2.07%.

The U.S. housing sector continues to agonize financial institutions with bets on securities backed by subprime mortgages and will probably continue reporting losses; the overall economic situation is not rosy.

That’s what we found out today, so it’s no doubt the bears dominated trading.

Stocks fell out of the opening on news that Citigroup Inc. (NYSE: C) announced has lowered its ratings on nine U.S. banks. The New York-based company, the largest U.S. bank, said that it expects those banks to see more losses stemming from the purchase of securities backed by subprime mortgage loans.

Home prices began to stagnate in the second half of 2006, leading to a wave of foreclosures and delinquencies as cash-strapped borrowers were unable to pay their mortgages. The squeeze was hardest on those with poor credit histories who took advantage of lax lending standards and secured loans that quickly overwhelmed their ability to make payments.

The housing situation is not getting any better.

The National Association of Homebuilders reported that builder confidence in the market for new single-family homes remained at a record low for a third consecutive month in December. The NAHB/Wells Fargo Housing Market Index stayed at 19 this month, its lowest level since the measure was introduced in 1985.

Shares of ACI Worldwide Inc. (Nasdaq: ACIW) have fallen to a new 52-week low on news before the start of trading that the software maker suffered a decline in fourth-quarter revenue, according to preliminary results.

The New York-based company, whose software processes electronic payments for financial institutions, reported that revenue for the quarter ended Sept. 30 was about $84.7 million, a decrease of 4%, compared with revenue of $88.2 million a year earlier. Four analysts polled by Thomson Financial were looking for revenues of $99.98 million.

The decline was partially due to an 8.1% rise in operating expenses, which came to $92.6 million from $85.7 million in the same quarter of 2006. ACI Worldwide said the extra expenses were related to the settlement of a lawsuit and acquisition costs.

The company, which has 2,100 employees and customers in 83 countries, also announced that it has signed a definitive agreement with IBM Corp. (NYSE: IBM). ACI Worldwide will deploy its software to enhance the security of payments for financial clients, while IBM will assist ACI with software enablement and marketing and sales.

“We are delighted to launch this transformational alliance with IBM,” said CEO Philip Heasley in a statement. “The partnership provides ACI with an opportunity to extend our reach among the world’s top 2,000 banks.”

The company said that it has not yet completed its financial closing process in the area of income taxes and can’t currently provide information about its net income.

At 2:09 p.m. ET, shares of ACI Worldwide (ACIW) had retreated $4.22, or 18%, to $19.29. The previous 52-week low of $20.65 was set Sept. 20, while the 52-week high of $38.72 was touched on Feb. 14.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are in negative territory on more credit worries
 
At 11:06 a.m. ET, the small-cap index was off 4.68 points, or 0.62%, to 749.25. The Dow Jones Industrial Average (INDU) had dropped 47.23 points, or 0.35%, to 13,292.62.

Citigroup Inc. (NYSE: C), the largest bank in the United States, woke up the bears before the start of trading when it announced that it has lowered its ratings on nine U.S. banks. The New York-based company said that it expects those banks to see more losses stemming from the purchase of securities backed by subprime mortgage loans.

In economic news, the U.S. Commerce Department reported before the start of trading that third-quarter current account deficit fell to $178.5 billion from a downwardly revised $188.9 billion in the second quarter.