Tag - Adpi

The Russell 2000 (NYSE: IWM) futures are gaining ground on the second to last trading day of the year amid news of possible asset sales by big banks.

Citigroup Inc. (NYSE: C) and HSBC Holdings, are among U.S. and European banks that are considering major asset sales, The Wall Street Journal is reporting this morning. Citigroup could sell an 80%-held student loan, its North American auto-lending unit, its 24% stake in Brazil credit-card operation Redecard and the bank's Japanese consumer finance business. HSBC might liquidate its auto-finance business.

The Census Bureau is expected to report new home sales for the month of November at 10 a.m. ET. Economists are that forecasting new home sales slid to 715,000 from 728,000 in October.

Also due out at 10 a.m. ET, the Chicago arm of the National Association of Purchasing Managers will report Chicago-area manufacturing index. The index is forecasted to edge down to 52 from 52.9 the previous month. A reading above 50 signals factory-sector expansion, while a reading below 50 signals contraction.

In small-cap news, a judge ruled Thursday that The Finish Line, Inc. (Nasdaq: FINL) must complete its $1.5 billion acquisition of mall retailer Genesco Inc. (NYSE: GCO) because it and advisor UBS reportedly knew about risks to Genesco's earnings. Finish Line said it may appeal.

Stocks also advanced as investors increased odds that the Federal Reserve will cut interest rates, quelling concerns of a recession.

Biggest percentage gainers:

• Chordiant Software Inc. (CHRD), up 15.8% to $9.40 on news that it that it has entered into a Global Framework Agreement with a leading telecommunications company for $26.1 million.
• Telestone Technologies Corp. (TSTC), up 5.3% to $6.86.
• Allos Therapeutics, Inc. (ALTH), up 5.3% to $7.

Biggest percentage losers:

• Cirrus Logic Inc. (CRUS), down 4.9% to $5.
• American Dental Partners, Inc. (ADPI), down 2% to $10.
• China Technology Development Group Corporation (CTDC), down 1.7% to $9.76.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) fell throughout Thursday’s trading session on weaker-than-expected durable goods orders and lackluster financial firm news, magnifying investors’ already present concerns surrounding a possible economic slowdown. The small-cap index dropped 23.52 points, or 2.95%, to 773.51. The Dow shed 192.08 points, or 1.42%, to 13,359.61.

News of the assassination of former Pakistani Prime Minister Benazir Bhutto only added to the unsettling economic data, shaking the markets.

Durable goods orders for the month of November edged up a less-than-forecasted 0.1% from October’s 0.4% decline. Economists were forecasting an increase of 2.5%.

In corporate news, Goldman Sachs issued a note late Wednesday speculating that financial juggernaut Citigroup Inc. (NYSE: C) might have to slash its dividend by 40% in light of now greater-than-forecasted write-downs for bad bets on collateralized debt obligations. Goldman is now projecting write-downs in the neighborhood of $18.7 billion, up from the investment bank’s previous estimate of $11 billion.

In related news surrounding the unfolding of the credit crisis, Fitch Ratings put 205 residential mortgage-backed securities backed by bond insurers, including MBIA and Ambac Financial Group, on review for a downgrade.

The day’s negative news overshadowed U.S. consumer confidence, which rose unexpectedly in December. The Conference Board's index of confidence increased to 88.6, the first gain in five months, from a revised 87.8 the prior month. November's number was the lowest in two years.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are continuing to tumble on weaker-than-expected durable goods orders and lackluster financial firm news, magnifying investors’ already present concerns surrounding a possible economic slowdown.

News of the assassination of former Pakistani Prime Minister Benazir Bhutto only added to the unsettling economic data, shaking the markets.

At 1:36 p.m. ET, the small-cap index was down 15.14 points, or 1.9%, to 781.89. The Dow was down 151.28 points, or 1.12%, to 13,400.41.

Durable goods orders for the month of November edged up a less-than-forecasted 0.1% from October’s 0.4% decline. Economists were forecasting an increase of 2.5%.

In corporate news, Goldman Sachs issued a note late Wednesday speculating that financial juggernaut Citigroup Inc. (NYSE: C) might have to slash its dividend by 40% in light of now greater-than-forecasted write-downs for bad bets on collateralized debt obligations. Goldman is now projecting write-downs in the neighborhood of $18.7 billion, up from the investment bank’s previous estimate of $11 billion.

In related news surrounding the unfolding of the credit crisis, Fitch Ratings put 205 residential mortgage-backed securities backed by bond insurers, including MBIA and Ambac Financial Group, on review for a downgrade.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are declining as news of the assassination of former Pakistani Prime Minister Benazir Bhutto and weak durable-goods data spooks the markets. Negative news overshadowed U.S. consumer confidence, which rose unexpectedly in December.

At 11:10 a.m. ET, the small-cap index was down 12.69 points, or 1.59%, to 784.34. The Dow was down 124.53 points, or 0.92%, to 13,427.16.

The slip in stocks followed on the heels of reports that Pakistani opposition leader Bhutto was assassinated in a suicide bombing while attending a political rally. Crude-oil futures rose on news of Bhutto’s murder, as energy traders are nervous about volatility in the Middle East.

Crude-oil futures are trading about $96 a barrel in morning trading. Energy traders are also anticipating the release of weekly data that are expected to show a decline in U.S. crude inventory.

The Labor Department reported this morning reported that initial jobless claims for the week ended Dec. 22 increased by 349,000, compared with an increase of 346,000 the previous week.

American Dental Partners, Inc. (Nasdaq: ADPI) shares are plunging after the District Court of Hennepin County, Minn., found the Wakefield, Mass.-based company liable to PDG, a Minnesota-based doctor’s group, for compensatory damages of $88.3 million.

On Wednesday, the jury found American Dental liable for breaches of the service agreement, implied covenant of good faith and fair dealing, fiduciary duty and tortious interference with contract or prospective advantage.

American Dental, which provides business services to dental groups, said it is considering and evaluating the jury's verdict and its options.

In morning trading, ADPI shares are down 63.95%, or $9.17, at $5.17.

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will likely open in negative territory.

Investors appear to be in a bearish mood even though U.S. retail sales for November were surprisingly strong. The Commerce Department reported that retail sales climbed 1.2%, well above the projected increase of 0.6% and higher than October’s 0.2% increase.

That result is surprising because economists expect consumer spending to slow in the closing months of 2007.

But there is also disappointing economic news.

The U.S. Labor Department reported that November producer prices, the prices received by domestic producers for their output, jumped 3.2%. That’s the biggest monthly increase in more than 30 years.

The core producer price index, which excludes food and energy, added 0.4%.

Both figures are well above what economists were expecting, which raises fears of inflation.

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Rigel Pharmaceuticals, Inc. (RIGL), up 78% on news its treatment for rheumatoid arthritis demonstrated good results in a clinical trial.
• Advanta Corp. (ADVNB), up 7%.
• Cynosure Inc. (CYNO), up 6%.

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.

Shares of American Dental Partners Inc. (Nasdaq: ADPI) are aching on news after the close on Monday that third-quarter earnings missed Wall Street’s forecast.

For the three months ended Sept. 30 the Wakefield, Mass.-based provider of business services to dental group practices reported a net income of $2.7 million, or $0.20 per share, while four analysts polled by Thomson Financial were expecting earnings of $0.27 per share. The company had a profit of $2.4 million, or $0.19 per share, a year earlier.

Net revenue jumped 25% to $67.2 million from $53.8 million during the third quarter of 2006. Wall Street was expecting a more modest rise to $70 million.

During the third quarter, American Dental Partners completed the acquisition of multi-specialty dental group Metropolitan Dental Holdings Inc. for $80 million.

At 3:34 p.m. ET, shares of American Dental Partners Inc. (ADPI) had fallen $3.61, or 13%, to $24.83. The 52-week low of $17.52 was reached on Nov. 30, 2006. The 52-week high of $29.90 was touched on June 18.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are in the red due to news of poor earnings and concerns that interest rates will not fall. At 1:35 p.m. ET, the small-cap index had shed 2.78 points, or 0.34%, to 818.94. The Dow was off 40.88 points, or 0.29%, to 13,829.38.

Investors hoping for a sizeable drop in the U.S. Federal Reserve’s target interest rate may be disappointed, according to an article in The Wall Street Journal. The paper claims that policy makers, who kicked off their two-day meeting this morning, will likely either cut the federal funds rate 0.25% or leave it unchanged.

That was enough to scare away the bulls, and stocks opened in negative territory.

Contributing to the bearish mood was news that United States Steel Corp.’s (NYSE: X) third-quarter net income missed analysts’ projections by falling 35% due to costs associated with an acquisition.

Cincinnati, Ohio-based consumer goods giant The Procter & Gamble Co. (NYSE: PG) also had bad news to report, saying that its profit margin will come under pressure in the coming months due to higher energy costs.