Tag - NCMI

Small-cap stocks limped into the close, barely clutching onto a smidgeon of the steep morning rise tied to stout monthly retail sales figures. The Russell 2000 (NYSE:IWM) closed up 1.95, or 0.27%, at 719.84, but the advance felt somewhat hollow considering small caps shed 10 handles off the highs.

The day started off in fine fashion for the bulls, as the retail sales report topped analyst forecasts, providing further enthusiasm that was already in place from soft crude oil prices and a firm dollar. The overnight dip in crude oil turned out to be short-lived, however, as black gold pushed back near $137 per barrel in the afternoon, charging about $3 dollars off the levels seen into the stock market open. In addition, new crop corn futures soared to new record highs as flooding damages crop conditions in the heartland.

Despite the recovery in crude oil prices, energy stocks were on the defensive today following a downgrade on energy and an upgrade in the financial arena by Morgan Stanley analysts. Although that recommendation seems to buck the ongoing trends, it worked well today.

Some of the morning excitement in stocks was stoked by fresh news on the proposed acquisition of Anheuser-Busch Cos. Inc. (NYSE:BUD) by Belgian firm InBev, which reportedly has tendered a deal worth $65 dollars a share, or approximately $46.3 billion. Anheuser, the quintessential iconic American brewery, controls nearly half the U.S. beer market, including the top seller, Bud Light. M&A talk tends to lift investor psychology, and big-cap deals are also supportive to small caps on the theory that if there are deals to be done in large caps, there are certainly even more deals to be done for small caps.

Speaking of M&A activity, the late slide in stocks off the highs was also powered by news that talks between Yahoo! (Nasdaq:YHOO) and Microsoft Corp. (Nasdaq:MSFT) broke down without any deal being struck. Shares in Yahoo tumbled about 10% on the news, dragging down large-cap index products and causing . . .

Small-cap stocks shot higher on the opening, lifted by surprisingly stout retail sales, and an overnight slide in crude oil prices. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 10.99, or 1.53%, at 728.87.

Business inventories data came out at 10:00 a.m. ET and were above the forecast at 0.5%, but had little impact on the market, overshadowed by the earlier retail sales release.

It’s worth noting that the market was already in rally mode well before the retail sales report topped the forecast. Buying enthusiasm was fueled overnight by merger and acquisition talk surrounding Budweiser (NYSE:BUD), by a decline in crude oil prices and a rally in the U.S. dollar. Budweiser shares were up 6% shortly after the opening.

The headline retail sales figure came in up 1%, which was well clear of the forecast for a rise of 0.5%, and the ex-autos figure also topped the forecast, coming in at 1.2%, compared with the forecast of 0.7%. The upside surprise in retail sales was enough to overshadow a jump in unemployment claims, which climbed to 384,000 compared with the forecast of 370,000. It marked the highest point for continuing claims since February 2004. Also, the import price data hit the forecast on the nose, but it still reflected the largest three-month increase since October 1990.

By the time the market opened, immediate gains from the retail sales report were already trimmed as news of a shakeup in the power structure at Lehman Bros. (NYSE:LEH) pulled down the market, at least initially. Lehman Bros. shares were off about 5% in erratic trading shortly after the open, but bounced back into the green about 25 minutes after the open. Lehman shares have been sinking of late, and collapsed about 50% in just four weeks, while keeping the credit crunch fears on the front burner.

Despite all the negative news surrounding Lehman and ongoing worries about the credit crunch, Morgan Stanley analysts issued an upgrade for financial . . .

National CineMedia, Inc. (Nasdaq: NCMI) the managing member and owner of a digital in-theatre network, this morning issued second quarter revenue guidance below the Street, sending shares tumbling out of the gate.

The Centennial, Colo.–based firm said it expects the bulk of its revenues to be shifted to the second half of the year on account of sluggish demand in the TV scatter market, its decision to pass on several opportunities with unacceptably low cost per thousand and the reduction of beverage advertising time by one of its member theatre circuits.

Shares skidded 19%, or $3.45, to $15.01 out of the gate. For detailed price information and recent news stories about National CineMedia, click NCMI.      

It would seem as though digital entertainment pervades our lives these days, from DVDs to digital satellite and cable television. But one medium still relies on old-fashioned silver halide film: the movies shown in your local theater.

Access Integrated Technology Inc. (Nasdaq: AIXD), launched in March of 2000, is trying to change that. AccessIT is the leader in installing digital equipment into theaters. Now it’s moving into distributing digital films to its equipment in the theaters. It acquired a private company, Big Picture, for about $4 million last quarter. Big Picture produces alternative digital entertainment, such as animated films and sports and concert events, enabling theaters to provide alternative programming to targeted audiences during slow times that normally attract very small audiences.

While most major research firms have so far ignored the space, several analysts covering the company believe the potential is huge. “I’m a believer in digital cinema,” says Jeff Van Rhee with Craig-Callum Capital. “There is absolutely an audience out there for alternative content.”

But AccessIT’s future could be bigger than an iMax double feature. It has distribution contracts with News Corp.’s 20th Century Fox (NYSE: NWS), Viacom, Inc.’s NYSE: VIA) Paramount Pictures and General Electric Company’s (NYSE: GE) Universal Studios. The studios currently help fund the theaters’ transition to digital, paying a fee every time a digital film is shown. So far AccessIT distributes mostly small films, but its executives have made it clear that transmitting feature films is on the digital horizon, predicting film distribution will be its largest revenue producer in five to seven years.