Tag - KLIC

Stocks are seesawing this afternoon about housing construction data tumbled to a record low.

At 2:57 pm ET, the Russell 2000 (NYSE:IWM) is up 0.63%, while the Dow is up 0.27% and the S&P 500 is up 0.63%.

The Commerce Department reported this morning that the construction of homes and apartments fell 12.8% last month to the lowest pace on records dating back a half-century. Analysts were expecting a rise.

Small-cap semiconductor company Kulicke and Soffa Industries Inc. (Nasdaq:KLIC) is up 28% this afternoon after it increased its revenue outlook for the third fiscal quarter. Formula Systems (Nasdaq:FORTY) has climbed 23% after reporting a rise in Q1 profit, and Lifeway Foods Inc. (Nasdaq:LWAY) is 20% after reporting record first-quarter 2009 revenues and earnings.

*****Stocks are down this morning after a “surprise” drop in new housing starts and a fall in new building permit applications. This shouldn’t really be a surprise. After all, we are in a recovering economy, and that means progress will come in fits and starts. And since housing was the underlying cause of the last run-up and a major contributor to the market slide, there should be no question that we’ll see “surprises” like this going forward.

Recall that we’ve seen some upside surprises from the housing market in recent weeks. Yesterday’s big move was attributed, in part, to an improvement in a homebuilders confidence survey. A little bad news to balance out the good should be expected.

Still, the data from April represents a new all-time low for housing starts on an annualized basis. Year over year, housing starts are down 54%, and the housing market was already headed down then.

If there is a bright side, it’s in the understanding that economic sectors, like the stock market, have to bottom out before they can improve. We could be seeing the housing market bottoming out now.

Bell-weather homebuilder Toll Brothers (NYSE:TOL) reports tomorrow. Toll Brothers is a major player in new home construction so look to them as a bellwether . . .

Multi-Fineline Electronix Inc (Nasdaq:MFLX), Advisory Board Co (Nasdaq:ABCO) and Pacer International Inc (Nasdaq:PACR) are among the biggest percentage losers in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: National Financial Partners Corp (Nasdaq:NFP), ACCO Brands Corp (Nasdaq:ABD), 21st Century Holding Co (Nasdaq:TCHC), Smith Micro Software Inc (Nasdaq:SMSI), Cambrex Corp (Nasdaq:CBM) and Kulicke & Soffa (Nasdaq:KLIC).

Here are the biggest percentage losers among small caps:

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) fell for the second consecutive day as economic reports and poor earnings made investors bearish. The small-cap index lost 10.87 points, or 1.39%, to 771.60. The Dow shed 120.96 points, or 0.91%, to 13,110.05.

On a year-to-date basis, the Russell 2000 has retreated 2.01%, while the Dow has risen 5.09% and the S&P 500 has added 2.44%.

The U.S. economy came into focus today when the Labor Department announced before the start of trading that its consumer price index increased 0.3% in October. The result was expected by economists and follows a similar rise in September.

Core prices, which exclude the volatile costs of food and energy, added 0.2%, the same as in September.

“Despite rising energy prices, inflation appears restrained,” said Arun Raha, vice president of Economic Research and Consulting for the North American operations of reinsurance company Swiss Re, in an email. “Looking ahead, there are two opposing forces at work with respect to inflation—on one hand we have high oil prices that can feed through to the core, and on the other we have weakening economic activity that softens prices.”

Consumer prices have advanced 3.5% on a year-over-year basis, while core prices have increased 2.2%. The U.S. Federal Reserve has said that it prefers core prices to stay in the range between 1% and 2%.

“The Fed needs to continue keeping a close watch on the situation,” Raha concluded.

Shares of Kulicke and Soffa Industries, Inc. (Nasdaq: KLIC) have moved higher on news before the start of trading that the maker of semiconductor assembly equipment more than doubled its fiscal fourth-quarter profit.

Net income for the three months ended Sept. 30 was $30.3 million, or $0.47 per share, an increase of 136.7% compared with a net income of $12.8 million, or $0.19 per share, during the same period in 2006. Six analysts polled by Thomson Financial were projecting earnings of $0.32 per share.

Revenue also came in above Wall Street’s projections, rising 40% to $236.8 million from $161.4 million a year ago, while analysts had forecasted revenues of $223.3 million.

“This quarter, we doubled our wire bonder shipments over the June quarter—extending our wire bonding market leadership with the strongest technology, manufacturing execution and customer relationships in our industry,” said chairman and CEO Scott Kulicke in a statement.

Wire bonders are machines used for the bonding of semiconductor chips.

Looking ahead to the first quarter of fiscal 2008, Kulicke and Soffa Industries announced that it forecasts net revenues of about $220 million, above analysts’ consensus of $217 million.

At 3:39 p.m. ET, shares of Kulicke and Soffa Industries (KLIC) had advanced $0.69, or 10%, to $7.47. The 52-week high is $12.46, reached on July 19. The 52-week low of $6.47 was touched on Nov. 12.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are in negative territory with two hours left in the session. At 2:04 p.m. ET, the small-cap index was off 10.69 points, or 1.37%, to 771.78. The Dow Jones Industrial Average (INDU) had retreated 58.45 points, or 0.44%, to 13,172.56.

The bears are on top thus far today as investors digest economic reports.

Consumer prices added 0.3% in October, the U.S. Labor Department announced before the opening. That follows a similar rise in September. Core prices, which exclude the volatile costs of food and energy, added 0.2%, also the same as a month earlier.

While economists were expecting those results, they were surprised by the sharp increase in weekly jobless claims.

Claims for the week ended Nov. 10 jumped 20,000 to 339,000, outpacing projections of a more modest increase of 3,000 from an upwardly revised level of 319,000 the previous week. Michigan was the state with the largest increase in jobless claims, shedding over 4,000 jobs in its automotive industry.

“It's too early to read too much into this week's rise in jobless claims,” said Arun Raha, vice president of Economic Research and Consulting for the North American operations of reinsurance company Swiss Re, in an email. “The four week moving average was unchanged, suggesting that the underlying trend has not changed.”

The four week moving average, considered a more stable measure, stayed put at 330,000 after the previous week’s average was revised.

The Russell 2000 (NYSE: IWM) is in negative territory on news of somewhat bearish economic reports and poor earnings from major corporations.

At 10:18 a.m. ET, the small-cap index was down 4.73 points, or 0.60%, to 777.74. The Dow Jones Industrial Average (INDU) had lost 4.80 points, or 0.04%, to 13,226.21.

Consumer prices added 0.3% in October, according to the U.S. Labor Department before the start of trading. The result was expected by economists and mirrors September’s price increase.

Core prices, which exclude the volatile costs of food and energy, added 0.2%, the same rise as in September.

The numbers tell us that inflation remains broadly in check, despite the recent spike in the price of oil and higher energy costs.

However, consumer prices have added 3.5% on a year-over-year basis, while core prices have increased 2.2%. The U.S. Federal Reserve has said that it prefers core prices to stay in the range between 1% and 2%.

In other economic news, the labor market unexpectedly softened for the week ended Nov. 10.

In a separate report the Labor Department said that weekly jobless claims climbed 20,000 to 339,000, the highest level since April. Economists were expecting a much smaller rise of 3,000 from an upwardly revised level of 319,000 the previous week.

Elsewhere, shares of J.C. Penney Company, Inc. (NYSE: JCP) are trading in the red following news that the department store narrowed its third-quarter income and lowered its fourth-quarter outlook.

Before the opening bell, Kulicke and Soffa Industries Inc. (Nasdaq: KLIC), a maker of semiconductor assembly tools and materials, raised its fourth-quarter revenue guidance to approximately $226 million, from previous guidance of $212 million. Additional orders for wire bonding equipment raised expectations, the company said in a press release.

CEO Scott Kulicke said the 6.6% % increase over our previous guidance is partially attributable to adjustments made to the firm’s manufacturing capacity and supply chain schedules during the quarter. The changes “have given us enough capacity to book additional equipment orders coming from our large subcontractor customers,” he said in a statement.

“This demand for our Maxum Ultra wire bonders provides an opportunity for the Company to satisfy our customers’ quick delivery needs and grow our leading market position,” Kulicke said in a statement.

In midday trading, shares of the small-cap are up 7.26%, or $0.62, at $9.16. Over the last 52 weeks, shares have ranged between $7.34 and $12.46.

Shares of Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) jumped in pre-market trading today after the supplier of semiconductor assembly equipment, materials, and technology provided revenue guidance for its fiscal fourth quarter above analyst estimates.

For the three months ending September 29, 2007, the Fort Washington, Pa.-based company said it expects revenues of about $212 million, above the Thomson Financial consensus of $197 million.

Shares of Kulicke & Soffa climbed 9.34%, or $1.11, to $13.00 in pre-market trading.

Horsham, Pa.-based Optium Corp.’s (Nasdaq: OPTM) fourth quarter fiscal 2007 outlook fell short of Wall Street’s projections.  The company expects net income to be between $0.08 per share and $0.11 per share, the supplier of high-performance optical subsystems said after Wednesday’s close.  Analysts were looking for earnings of $0.17 per share.  The stock is down $0.13, or 1%, to $15.69.