Tag - Cadx

Small-cap stocks rejected a morning pullback to close higher on the day, backing up the euphoric FOMC rate cut rally with an impressive showing given early weakness. Tuesday’s FOMC rise was powered by financial and homebuilder stocks, while today’s climb branched out to retailer, selected commodity and telecom names. The Russell 2000 (NYSE:IWM) closed up 3.75, or 0.78%, at 486.59 and is now down 36% for 2008. Meanwhile, the Dow was down 1.12% on the day, and is down 33% for the year, while the S&P 500 was down 0.96% Wednesday and down 38% for 2008.

Action today was noticeably calm after the big rate cut rally Tuesday. Investors were likely pondering just how the Federal Reserve would bolster the economy now that interest rates for short-term loans from the government are basically at zero. One clear path would seem to be buying longer-dated instruments, and Treasury markets were higher throughout the day, although down quite a bit from the morning rise when equities were on thinner ice to start the session.

On the retailer front, Macy’s Inc. (NYSE:M) jumped some 18%, leading the S&P Retail Index to a decent 1.8% gain on the day. Small-cap firms such as Abercrombie & Fitch Co. (NYSE:ANF) rose 3.9%. Retail sales reports have been spotty through this difficult holiday season, but Best Buy Co. Inc. (NYSE:BBY) shot higher Tuesday ahead of the FOMC news on a solid earnings report.

Selected commodity areas provided support to the stock market today, with metals, mining, gold and steel companies counted among the top performing sectors. Some of the bullish edge may have been taken off commodities however as crude oil prices plunged this afternoon, sinking some 8% to the lowest level in more than four years. The sell-off in crude took place right in the face of an announced production cut by OPEC leaders. Perhaps the sting of OPEC’s proposed cut was limited by the fact that non-members Russia and Mexico did not weigh in to support a pullback in production. Interestingly, even though crude oil prices slumped to four-year lows, . . .

Small-cap stocks opened lower but battled back to steady levels, pressured by profit-taking after Tuesday’s big FOMC rally. Weak profit news on the financial front and lingering worries about the recession prompted a pause in the updraft, which saw small caps climb to the highest daily close Tuesday since mid-November. At 9:56 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.11, or 0.02%, at 482.74.

Ahead of the opening, Morgan Stanley (NYSE:MS) announced a larger-than-expected quarterly loss, which could weigh on financial shares early today. MS stock was off 4.3% immediately after the open and financial stocks were on the defensive. Tech stocks were soft early as well, with bellwether Apple Inc. (Nasdaq:AAPL) off 4.6% on concerns about the health of CEO Steve Jobs.

The weekly MBA Mortgage Application Index rose 2.9%, bolstered by a pickup in refinancing, with the MBA’s refinance sub-index climbing 6.5%. The rise in activity was powered by a slide in mortgage rates, which hit the lowest point last week since June 2003. A recent spike in mortgage activity, coupled with talk that the Federal Reserve will target mortgage rates has been a boon to homebuilder stocks, with the ISE Homebuilder Index soaring 78% from the Nov. 21 low. This morning, however, homebuilders appear to be in correction mode with the overall market. On the company news front, small-cap homebuilder Hovnanian Enterprises Inc. (NYSE:HOV) missed the earnings forecast and HOV shares were off 7.5% shortly after the open.

Crude oil prices drifted back and forth between positive and negative territory into the stock market open today, as the market braced for a production cut from this week’s OPEC meeting. Emerging market stocks found support overnight, with Hungary’s beaten down stock market climbing 6% amid gains in oil and gas stocks. Commodities . . .

Iconix Brand Group Inc. (Nasdaq:ICON), Salix Pharmaceuticals Ltd. (Nasdaq:SLXP) and Human Genome Sciences Inc. (Nasdaq:HGSI) are among the  lead small-cap volume in pre-market in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: i2 Technologies Inc. (Nasdaq:ITWO), Cadence Pharmaceuticals Inc. (Nasdaq:CADX), Harmonic Inc. (Nasdaq:HLIT), STEC Inc. (Nasdaq:STEC), Progenics Pharmaceuticals Inc. (Nasdaq:PGNX) and Evergreen Solar Inc. (Nasdaq:ESLR).

Here are the  lead small-cap volume in pre-market among small caps:

Small-cap stocks tried in vain to dodge some serious data land-mines Thursday as investors anxiously await the big data bomb released with Friday morning’s employment report. Amid choppy seas, the Russell 2000 (NYSE:IWM) eventually finished down 4.34, or 0.60%, at 714.52, unable to shrug off dreadful unemployment claims, soft GDP numbers and a cautious tone from former Federal Reserve Chairman Alan Greenspan.

Day traders looking for a definitive direction in small caps today may have gotten a little seasick as the market see-sawed up and down, carried on the whims of economic data crunchers. The opening salvo (and the most dynamic move of the day) was a bearish tilt as weekly unemployment claims went through the roof. Although the survey period for Friday’s monthly jobs report was over before this week’s claims survey, it’s not exactly reassuring to see unemployment numbers spike way beyond expectations.

Just how bad was the claims report? The number came in at 448,000, swamping the forecast for a dip to 395,000 following last week’s already uncomfortably big 404,000 figure. To give it a little better perspective: it was the largest one-week claims figure for any week, of any month, in more than five years. If nothing else, the weekly claims report certainly shot more holes in Wednesday’s ADP employment report, which forecast job growth, nevermind recent reports of layoffs in financial and . . .

It’s been a rollercoaster ride thus far for small caps, most recently trending deeper into the red along with the S&P 500 and the Dow after a gloomy weekly unemployment claims report and a weaker-than-expected read on GDP dragged equities lower. 

At 12:46 p.m. ET, the Russell 2000 (NYSE:IWM) was down 3.44, or 0.48%, at 715.42, while the Dow down 0.98%, or 113.01, at 11,470.68.

The weekly claims number, reported this morning, spiked more-than-expected to 448,000 from last week’s 404,000 level. The claims number, which was substantially above the median forecast of a decline to 395,000, was pushed higher by an emergency unemployment program. The number was the single largest weekly claims figure in more than five years. Although this survey was taken after the numbers were collected for Friday’s monthly employment release, it has heightened jitters ahead of the Labor Department’s release tomorrow. 

The second-quarter number for GDP, also out this morning, wasn’t comforting either. The nation’s domestic growth clocked in at 1.9% for the second quarter, below the forecast of 2.3%. Additionally, GDP for the past 3 years was revised downward. Fourth quarter GDP was reduced to minus 0.2%, the first decline in quarterly GDP since 2001.

"The revisions were ugly and will fuel the recession debate," Andy Busch, global foreign exchange strategist for BMO Capital Markets, said in an email. "Today's numbers were a big disappointment and will rev up the doom-gloom crowd to call for the end of the world. July was brutal. Let's hope we can focus on the Olympics -- I'm still expecting/hoping to see a stabilization occur in August without the massive swings July presented."

Although the weak GDP number and claims took the limelight today, there was some hopeful economic news in the abyss. The Chicago Purchasing Managers report came in stronger than expected. PMI was 50.8, above the forecast of 49 and above 50 for the first time since January.

For the first time in awhile, gyrations in crude oil prices were not the focal point. Crude sold off this morning, after spiking over $4 Wednesday, and continues to tread in the red. A barrel of light sweet crude slipped $2.40 to roughly $124 mid-session.

The economic reports managed to smother uplifting merger and acquisitions news. Bristol-Myers Squibb Co. (NYSE:BMY) made a bid to acquire ImClone Systems Inc. (Nasdaq:IMCL) ...

Cadence Pharmaceuticals Inc (Nasdaq:CADX), Zones Inc (Nasdaq:ZONS) and PharmaNet Development Group Inc (Nasdaq:PDGI) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Famous Daves of America Inc (Nasdaq:DAVE), MasTec Inc (Nasdaq:MTZ), Richardson Electronics (Nasdaq:RELL), LHC Group Inc (Nasdaq:LHCG), iStar Financial (Nasdaq:SFI) and Dawson Geophysical Co (Nasdaq:DWSN).

Here are the biggest percentage gainers among small caps:

Small-cap stocks mounted a valiant comeback push after sinking 1% shortly after the opening, as tech stocks pushed higher, Chicago PMI beat the forecast and merger deals helped offset gloom tied to terrible weekly unemployment claims. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was down 3.25, or 0.45%, at 715.62. The tech-laden Nasdaq 100 was up 0.3%.

The weekly claims number came in at 448,000, far beyond the median forecast of 395,000, and a big jump from last week’s 404,000 number. How bad was this number? It was the single largest weekly claims figure in more than five years. Even though this survey was taken after the numbers were collected for Friday’s monthly employment release, it certainly won’t raise investor confidence about the labor market ahead of that release. It also will call into question some of the rise powered by Wednesday’s ADP employment report. The claims numbers were boosted by an emergency unemployment program, but even allowing for some data quirks, it’s a sobering report that does not paint a rosy picture of the labor market right now.

Most people came in to today’s session expecting the GDP report to claim top billing on the data slate, but economic growth was clearly upstaged by the weekly unemployment report. As for GDP, it was also a disappointment, as the headline figure came in at 1.9%, below the forecast of 2.0%. In addition, fourth quarter GDP was revised downward to minus 0.2%, the first decline in quarterly GDP since 2001.

Before the numbers came out, the stock market was higher in overnight trading, but the claims report sparked an abrupt 11-handle slide in S&P 500 futures, and triggered a big slide in the U.S. dollar and in Treasury yields. The yield on the benchmark 10-year note was down more than 2% into the stock market open, which suggested money flow away from equities toward safe-haven products. The dollar was down more than 100 basis points against the euro, slipping 0.7% after the . . .

Shares of Cadence Pharmaceuticals Inc. (Nasdaq:CADX) are soaring 64% in today’s pre-market after the U.S. Food and Drug Administration said the trials for the drug Acetavance are sufficient to submit a new drug application. Acetavance is the biopharmaceutical company’s intravenous formulation of acetaminophen for the treatment of acute pain and fever in adults and children, the company said. The San Diego company said it intends to complete the new drug application in the second quarter of 2009.

Ahead of today’s opening, shares are at $10.50 at 8:28 a.m. ET, up $4.08 from Wednesday’s close. Shares have ranged from $4.84 to $15.70 during the past year.

Logility Inc. (Nasdaq:LGTY), Financial Institutions Inc. (Nasdaq:FISI) and Cadence Pharmaceuticals Inc. (Nasdaq:CADX) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $750 million.

Orion Marine Group, Inc. (Nasdaq:OMGI), Virage Logic Corp. (Nasdaq:VIRL) and Independent Bank Corp. (Nasdaq:IBCP) are also among the top small-cap percentage losers.

Here are today's biggest percentage losers:

The Russell 2000 (NYSE: IWM) and the other major U.S. indices fell today on more financial problems and fears of a consumer slowdown. The small-cap index dropped 15.56 points, or 2.16%, to 704.65. The Dow Jones Industrial Average (INDU) retreated 246.79 points, or 1.92%, to 12,606.30.

On a year-to-date basis, the Russell 2000 has lost 8.01%, while the Dow is off 4.96% and the S&P 500 has shed 4.59%.

The bears were in the driver’s seat today as news of more pain at major financial firms sparked worries that the subprime mortgage mess could take its toll on the American consumer.

Small-cap stocks opened with a drop and never looked up on news that Merrill Lynch & Co., Inc. (NYSE: MER), the world’s largest brokerage house, may incur $15 billion in losses from investments in securities backed by mortgage loans.

Mortgage lenders nationwide frequently packaged loans and sold them as securities to financial companies, and as a result both parties have suffered billions in losses as U.S. home prices started to stagnate in the second half of 2006 and many borrowers defaulted on their loans and went into foreclosure.

Adding to the gloom was New York-based credit card issuer American Express Co. (NYSE: AXP), which announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies.

The Russell 2000 (NYSE: IWM) is falling on news of worse-than-expected earnings forecasts from major financial players. At 1:26 p.m. ET, the small-cap index had retreated 8.53 points, or 1.18%, to 711.68. The Dow Jones Industrial Average (INDU) was down 207.20 points, or 1.61%, to 12,645.89.

The bears are dominating trading as stocks small and large are losing ground on news that the strain from the problems in the subprime mortgage sector has spread.

Merrill Lynch & Co., Inc. (NYSE: MER), the world’s largest brokerage house, reported before the start of trading that it may incur $15 billion in losses from investments in securities backed by mortgage loans.

That’s more than twice what the New York-based company had initially projected and an indicator that the problems stemming from the stagnation in the U.S. housing market continue to ripple through financial markets.

More bearish news came from luxury jewelry seller Tiffany & Co. (NYSE: TIF), which lowered its guidance for the fiscal year, and credit card issuer American Express Co. (NYSE: AXP), which announced a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies.

The American consumer is still spending money, but retail sales have slackened due to high energy costs.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are falling on more news of financial trouble stemming from the subprime meltdown.
 
At 10:33 a.m. ET, the small-cap index had lost 9.64 points, or 1.34%, to 710.57. The Dow Jones Industrial Average (INDU) was off 184.12 points, or 1.43%, to 12,668.97.

Stocks opened in negative territory following news that Merrill Lynch & Co., Inc. (NYSE: MER) may suffer $15 billion in losses from investments in securities backed by mortgage loans.

The loss, which is twice what the New York-based investment bank had initially estimated, is an unpleasant reminder of how shockwaves from the stagnating U.S. housing market continue to ripple through financial markets.

There was more bearish news from the financial sector as credit card issuer American Express Co. (NYSE: AXP), announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies. The company said that it now expects fourth-quarter earnings below the level a year earlier.

Many mortgage lenders nationwide have taken a hit and even declared bankruptcy as U.S. home prices have stagnated and many borrowers have defaulted on their loans and gone into foreclosure. Lenders frequently packaged loans and sold them as securities to financial companies, which have in turn also incurred billions in losses.

The Russell 2000 (NYSE: IWM) futures are down and the small-cap index will open with a decline on news of more mortgage losses.

Small-cap stocks are set for a bearish opening following news that Merrill Lynch & Co., Inc. (NYSE: MER) may suffer $15 billion in losses from investments in securities backed by mortgage loans. The loss is almost twice what the New York-based investment bank had initially estimated and an unpleasant reminder of how shockwaves from the stagnating U.S. housing market continue to ripple through financial markets.

Providing more unpleasant news is credit card issuer American Express Co. (NYSE: AXP), which announced that it will absorb a fourth-quarter pretax charge of about $440 million due to slower spending by card members and an increase in delinquencies. The company said that it now expects fourth-quarter earnings below the level a year earlier.

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:

• AmCOMP Inc. (AMCP), up 41% on news it will be acquired by Employers Holdings, Inc. (NYSE: EIG).
• Columbia Bancorp (CBBO), up 20%.
• USANA Health Sciences, Inc. (USNA), up 16% on news an informal inquiry by the U.S. Securities and Exchange Commission has ended with no action.

Biggest percentage losers:

• Cadence Pharmaceuticals, Inc. (CADX), down 47% on news a clinical trial did not meet its primary endpoint.
• Opnext, Inc. (OPXT), down 14% on news that it expects fiscal third-quarter sales below Wall Street’s projections.
• Wavecom S.A. (WVCM), down 5%.

This year hasn’t exactly been a banner year for specialty pharmaceutical companies that analysts might have forecasted. Year-to-date, the overall sector has seen a measly 2.2% return, compared with 9% in 2006. Small-cap specialty pharmaceuticals returned just 10.1% year-to-date, compared with a ripe 34.4% return in 2006. The last 30 days in particular have shown considerable underperformance, clocking in at -4.1%.

Despite a disappointing 2007, analyst Angela Larson with Susquehanna Financial said that “[a] robust calendar leaves us room for optimism for 2008.” Looking at 2007, the analyst concedes that the low base incurred this year may mean greater room for growth in the coming year.

Larson says the key catalysts for moving valuation going forward (in order of priority) include, successful FDA approval and launch of new products, successful completion of Phase 3 studies, successful completion of Phase 2 studies that can lead to Phase 3 and partnership discussions, the acquisition of products and the clarity in funds to achieve outlined goals.

Among the companies she covers, Larson says all but two companies are hitting one or more of these milestones in 2008. Small caps Anesiva and POZEN are both expected to launch products that should bring a new market opportunities to their respective companies, Larson says. Additionally, ISTA Pharmaceuticals and Salix have products on tap for 2008 that could, according to Larson, expand or protect the companies’ existing franchises.

Significant news flow on the Phase 3 data release is also expected in 2008, according to Larson, from companies including Allergan, Barrier Therapeutics, Cadence, DURECT, Endo, Inspire, ISTA, NeurogesX, Obagi, POZEN, Salix, Sciele and Shire.

“News events in 2007 have tended to carry greater risk than reward due to the market offering a negative bias on performance and expectations on good news being priced in early,” Larson wrote in a research note today. “However, we believe the news flow is more robust and varied this year, which may help re-cast the group sentiment.”

The small-cap specialty pharmaceuticals Larson has a positive rating on include Barrier Therapeutics (BTRX), Barrier Therapeutics (CADX), ISTA Pharmaceuticals (ISTA), NeurogesX (NGSX), Obagi Medical Products (OMPI) and POZEN (POZN).