Tag - NEXT

The Russell 2000 (NYSE: IWM) posted gains today as some of the world’s most influential central banks announced a plan to ease the credit squeeze. The small-cap index rose 5.44 points, or 0.71%, to 771.71. The Dow Jones Industrial Average (INDU) advanced 41.13 points, or 0.31%, to 13,473.90.

On a year-to-date basis, the Russell 2000 is down 2%, while the Dow has added 8.01% and the S&P 500 has climbed 4.94%.

The bulls ran the show today as investors cheered news that the U.S. Federal Reserve and four other major central banks will inject billions into global money markets to boost bank lending.

The Fed will allow depository institutions to receive billions in short-term funds at rates below the ones it normally charges for loans. Similar initiatives were announced by the central banks of Canada, England, Switzerland and the European Union.

The Fed also set that it has created “swap” lines with the European Central Bank and the Swiss National Bank, for $20 billion and $4 billion respectively. That allows the two banks to make dollar loans in their jurisdictions. Previously, foreign central banks were unable to inject funds in anything other than their own currency.

The Russell 2000 (NYSE: IWM) is posting solid gains on news that central banks around the world are pumping cash into money markets. At 2:33 p.m. ET, the small-cap index was up 7.04 points, or 0.92%, to 773.31. The Dow Jones Industrial Average (INDU) had added 67.14 points, or 0.50%, to 13,499.91.

Small-cap stocks are going strong following news before the start of trading that the U.S. Federal Reserve and four other major central banks are joining hands to inject billions into global money markets to boost liquidity and spur lending.

The U.S. central bank will create a Term Auction Facility program to auction term funds to depository institutions against collateral that can be used to secure loans, according to its statement.

The program will provide banks in good financial condition with billions in short-term funds. The loans will be at rates below the rate charged on direct loans from the Fed to banks but will still be backed by the same type of collateral obligations.

A number of major banks have reduced the flow of credit to businesses and consumers following the meltdown in the subprime mortgage market, which left many financial institutions with billions in losses as foreclosures and loan delinquencies made securities backed by subprime mortgages essentially worthless.

Nextest Systems Corp. (Nasdaq: NEXT) shares are soaring in morning trading after test equipment maker Teradyne Inc. (NYSE: TER) said it will buy the San Jose, Calif.-based company for $20 per share, or about a 67% premium over Tuesday’s closing price. The $325 million cash deal is expected to close during the three months of 2008.

"Teradyne's rich experience as a technology innovator, along with their strong customer relationships, will greatly accelerate our mission to lower test costs and to grow our business," Nextest CEO Robin Adler said in a statement. "We are very excited about the impact, potential and opportunity this combination provides to our employees, our stockholders, and most importantly, our customers."

Nextest, which had $95.8 million in revenue during 2006, makes test products for flash memory chips. Teradyne said it expects the acquisition to reduce 2008 earnings. The deal is pending approval by both companies’ boards.

In morning trading, NEXT shares are flying high — up 63.55%, or $7.62, at $19.61. Over the last 52 weeks, shares have ranged from $10.49 to $19.64.

Chinese semiconductor maker Vimicro International Corp. (Nasdaq: VIMC) reported fourth-quarter revenue of $1.6 million, compared with $2.5 million in fourth-quarter 2006.

These are the biggest percentage losers in Friday’s trading among companies with market capitalizations under $500 million:

The Russell 2000 (NYSE: IWM) is down but the Dow Jones Industrial Average (DJI) is up as stocks are mixed on news of a decline in June retail sales and conflicting economic data.

At 10:25 a.m. ET the Russell 2000 had lost 3.68 points, or 0.43 percent, to 851.50. The Dow Jones Industrial Average was up 10.81 points, or 0.08 percent, to 13,872.54.

June retail sales fell 0.9%, the most in almost two years, the U.S. Commerce Department reported before the opening bell. Economists were forecasting a drop of 0.1%. On Thursday, retailers surprised many by announcing generally positive same-store sales in June, leading to a rally.

Elsewhere, the higher price of oil contributed to a 1% rise in June import prices, according to the Labor Department before the start of trading. Wall Street was calling for a rise of 0.6%.

The news this morning was not all bad. The monthly University of Michigan said that its consumer sentiment index rose to 92.4 in July, exceeding the projected rise to 86. The index was at 85.3 in June.

The following were the most actively traded companies in Friday’s trading among those with market capitalizations under $500 million:

Semitool Inc. (Nasdaq: SMTL), which makes and installs service equipment used in the fabrication of semiconductor devices, lowered its guidance for the quarter ended June 30. The Kalispell, Mont.-based company said after Thursday’s close that it expects a loss of between $0.01 per share and $0.03 per share prior to restructuring costs of $0.01 per share. Analyst estimates were not available. Shares are down $0.23, or 2%, to $9.26.

Shares of MRV Communications, Inc. (Nasdaq: MRVC) are appreciating on news after Thursday’s close that the Chatsworth, Calif.-based manufacturer of network equipment and services and optical components has tapped Guy Avidan as the next CFO, replacing Kevin Rubin. The stock is up $0.10, or 4%, to $2.95.

Idenix Pharmaceuticals, Inc. (Nasdaq: IDIX) said the FDA has essentially rejected its hepatitis C drug. Idenix is “not optimistic” about the drug’s future prospects, CEO Jean-Pierre Sommadossi said.

The following are the most actively traded companies in Friday pre-market trading among those with market capitalizations under $500 million:

These are the biggest percentage losers in Thursday's trading among companies with market capitalizations under $500 million:

The Russell 2000 is posting small gains this morning, following news of an expected rise in U.S. weekly jobless claims, as well as news of acquisitions activity.

At 10:15 a.m. ET the Russell 2000 had added 1.51 points, or 0.18 percent, to 849.71. Dow Jones Industrial Average was down 22.52 points, or 0.17 percent, to 13,554.78.

In economic news, U.S. jobless claims for the week ended June 30 increased 2,000 to 318,000 on a seasonally adjusted, the Labor Department said before the opening bell. That’s in line with economists’ projections.

In business news, private equity firm The Blackstone Group (NYSE: BX), which went public on June 22, has agreed to buy Hilton Hotels Corp. (NYSE: HLT) for $20 billion. That’s comes to a price of $47.50 a share, a 40% premium over Hilton’s Tuesday closing price.

The following were the most actively traded companies in Thursday's trading among those with market capitalizations under $500 million: