Tag - Cost

Stocks were poised to open lower today and but for a brief few minutes in early trade they generally lived up to the prediction. The Dow shaved 34 points to close at 8,439. The S&P 500 sank 1.5 points to 919, while the Nasdaq closed up 9 points to end the day at 1,838.

Stocks in the Russell 2000 Index, a composite of the 2,000 largest small-cap stocks, bucked the downward trend for the index to close at 513, up 0.78%.

While there was good news about a very modest increase in spending rates, investors seemed most concerned about the boost to the U.S. savings rate to 6.9 percent, up from 5.6 percent in April and significantly up from rates below 1 percent for the period 2005 through 2007. While this could bode well for the longer term economic health of the U.S. economy many analysts see it merely as a side effect to consumer concerns about layoffs, cutbacks, and furloughs.

The increase in the savings rate has come at the expense of consumer spending, which accounts for roughly 70 percent of the U.S. economy. Indeed, many retailers have been battered over the past several quarters as Americans concerned they may receive a pink slip any day shut their wallets to defer spending and switch to lower cost brands for necessities.

Among the stand-outs in retailing are Wal-Mart (NYSE:WMT), Target (NYSE:TGT), and Costco (NYSE:COST). Despite more consumers turning to discount retailers, both WMT and COST have seen year to date share price declines. TGT shares are up nearly 20% for the year.

Despite the modest increase in household spending, retailers are girding for continued earnings pressures as American families prepare for unemployment to reach 10% later this year, up from the current 9.4%.

Leading small-cap gainers today was Zion Oil & Gas (AMEX:ZN) up 76%. Zion runs as a development stage oil and gas exploration firm. Based in Dallas, Texas, the firm holds exploration licenses for onshore development in Israel.

Other small-cap leaders included Cardium Therapeutics (AMEX:CXM) up 48%; Schmitt Industries (Nasdaq:SMIT) up 45%; and Caraco Pharmaceutical Laboratories (AMEX:CPD) up 35%.

Decliners were lead by Design Within Reach (Nasdaq: DWRI), a San Francisco-based furniture store, down 41% after announcing that it expects to delist from the Nasdaq on July 16 with trading ceasing July 6. DWRI has had trouble keeping its share price above $1.00 (a key Nasdaq requirement) for most of 2009 and has indicated that it does not have the working capital to meet the Nasdaq's requirements for staying listed.

Besides DWRI, small-cap price decliners were lead by NewBridge Bancorp (Nasdaq:NBBC) down 37%; Cano Petroleum (AMEX:CFW) down 25%; and Cumulus Media (Nasdaq:CMLS), also down 25%.

Yesterday, the Fed scaled back two of its liquidity-providing programs and announced it would let a third one expire on July 1, 2009.  

Each program was designed to provide liquidity to securities dealers and money-market funds that couldn't raise funds in the capital markets. The Fed noted that none of the programs were used anywhere close to capacity. And the improving economy and loosening of credit markets has made the programs less necessary. 

Investors took this as good news because it suggests the economy and financial system is starting to stand on its own. It's also good news because it shows the Fed is willing to be somewhat proactive in shutting off liquidity.  

To me, this is more important. 

*****In one form or another, the U.S. government has made (read:created) something like $11 trillion available to fight this recession. (I'm not sure anyone knows the exact number.) The government has been widely praised for its response to the financial crisis. Its moves are credited with averting a more serious problem.  

But that's only half the job, and it's the easy half, at that. I expect many of you have seen how a toddler reacts when it's time to give up the pacifier. Kicking and screaming is an understatement. And that's exactly how it will happen when the Fed really starts taking away the liquidity pacifier for good.  

Alan Greenspan never had the stones to give the U.S. economy the tough love it needed. And Wall Street became a spoiled bunch of delinquents.  

Will Bernanke have what it takes to guide the U.S. economy from dependent child to responsible adult? We'll see. And we better hope so, because I suspect the stakes are even higher this time around…  

*****While the U.S. is creating debt to support its economy, China is using its currency surplus to secure raw materials. I mentioned yesterday that China's state-run oil company Sinopec (NYSE:SNP) is trying to acquire an oil exploration company for $7.2 billion. And it wasn't that long ago that China tried to take a $19 billion stake in mining giant Rio Tinto (NYSE:RTP).  

When you're an investor, you have to be worried about opportunity cost. That's the cost of profits that you could have made, if your investment capital wasn't tied up in under-performing or illiquid assets.  

Right now, and probably into the future, the U.S. will be suffering opportunity cost as so much of our resources are tied up in simply supporting our economy. 

*****Case in point: Iraq. Iraq is one the verge of opening the deal-making process for international oil companies to upgrade Iraq's oil fields. This promises to be a very convoluted process - the Kurds and Parliament want input and the current oil minister appears ready to bypass them both.  

All Iraqis realize how important oil, and oil revenue, is to their future, and they're all fighting to get a piece of the action and avoid the exploitive situation that occurred before Saddam Hussein kicked Big Oil out of Iraq. 

For this reason, the proposed development contracts are not guaranteed. There is the risk that a subsequent Iraq government could nullify them and there would be no recourse.  

The risks are high enough that Exxon-Mobil (NYSE:XOM) isn't even sure yet if it will enter the bidding process. But I'll bet you dollars to doughnuts that Sinopec's parent company, China National Petroleum & Chemical Corp. will be bidding.  
Now, obviously, the recession has nothing to do with Exxon's uncertainty. But for China's state-run oil companies, national interests are sometimes more important than profits. And that can be a good thing.

*****Now, here's Jason Cimpl's video analysis of this week's action and look ahead to next week. So far he's batting a thousand. You can view the video HERE or go directly to trademasterstocks.com/videoreport. 

 

Small-cap stocks hovered near steady levels in early trading, with pressure from weak corporate profit news countered by bargain hunting, overseas gains and a private employment report that wasn’t as bad as feared. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.26, or 0.06% at 452.64.

The ADP Employment Survey reflected a loss of 522,000 jobs from non-farm payrolls and projected the Labor Department report Friday would show a decline in jobs of 525,000, which was slightly above the median forecast of 500,000. That said, the market took the ADP figures in stride, with a “it could have been much worse” mentality in play. It’s worth noting that the ADP report was veering way offline for many months before they shifted methodology last month and got back on a tighter track with the Labor Department survey.

In overseas trading, European shares pushed higher despite disappointing December retail sales. The gains were a little dynamic in Asia, where Chinese shares climbed 2.7% as the government started to release funds for stimulus programs and Indonesia cut interest rates. Tech stocks, electronics makers and auto stocks were among the better performers in Asian trading overnight.

Here in the United States, much of the individual corporate profit news was gloomy this morning, including disappointments from The Walt Disney Co. (NYSE:DIS), Costco Wholesale Corp. (Nasdaq:COST) and Time Warner Inc. (NYSE:TWX). Shortly . . .

U.S. stocks are expected to open flat to slightly lower, pressured by sloppy corporate profit reports, which should offset modest gains in Europe and Asia in overnight trading, with the latter region boosted by Chinese stimulus spending and rate cuts in Indonesia.
However, gains in Europe were sliced after Russia’s debt ratings were cut. The ADP Employment Report came out in line with expectations and appeared to have only minor impact on pre-market trading. The Dow was called 25 points lower while the Russell 2000 (NYSE:IWM) was seen flat to slightly lower at 452.50.

The ADP report reflected a loss of 522,000 on non-farm payrolls and the survey projected the U.S. report Friday to show a loss of 525,000. Friday’s Labor Department report is expected to show a loss of 500,000 non-farm jobs and a jobless rate of 7.5%.

On the earnings front today, The Walt Disney Co. (NYSE:DIS), Costco Wholesale Corp. (Nasdaq:COST) and Time Warner Inc. (NYSE:TWX) all were seeing sizable losses in pre-market trading after releasing weak profit reports. Small-cap chip designer Rambus Inc. (Nasdaq:RMBS) fell some 20% in extended trading Tuesday on news that a judge postponed a patent trial dispute.

The chart picture for small caps shows that the Russell has nestled into another trading range, punctuated by moderate to light volume. The push back above 450 on Tuesday was a supportive signal, and the overall trading range pattern has a mild . . .

A bleak picture of the nation’s employment picture sparked a solid opening decline for small-cap stocks. Bearish momentum was furthered by a batch of weak profit reports and outlooks for various companies, but another firm tone in commodities offered up support. At 9:57 a.m. ET, the Russell 2000 (NYSE:IWM) was down 4.03, or 0.85%, at 472.37.

The weekly unemployment claims report headline figure came in at 573,000, which swamped the forecast of 525,000 and which was a cycle high so far in the economic malaise. What’s more, it also marked the highest claims number in 26 years. Even more scary is that the number of continuing claims, which tracks people who are out of work and just can’t get a job, rose to 4.429 million, way above the 4.1 million forecast and the highest point since November 1974. It has been fashionable to rally on “bad” economic news lately amid ideas that the market will be forward looking and rally away from the lows long before the news bottoms out, but it is difficult to look past numbers as bad as today’s claims report – especially if you don’t see things getting better for some time to come.

“Although the labor force is much larger now that it was 25 years ago, the number of people actually covered by unemployment insurance has declined substantially,” Steven Wood, chief economist with Insight Economics, said in an email. “More importantly, the deterioration in initial claims, continuing claims, and the insured jobless rate has been as bad as they were during the 1981-1982 recession, which was the most severe in the post-World War II period. Although these data are not for the survey week, they suggest another substantial decline in payroll employment and another jump in the unemployment rate for December.”

The International Trade report also came out this morning and the deficit widened to $57.19 billion, well above the forecast for a deficit of $53.5 billion. The U.S. dollar extended overnight losses against the euro after the report, with the . . .

Small-cap stocks pushed lower Friday, as optimism over government approval for a massive bailout of financial bad debt gave way to somber economic data on the employment picture. It was a strange session from a market movement standpoint, but in the end the Russell 2000 (NYSE:IWM) stumbled 18.27, or 2.87%, to 619.40, the lowest weekly close since May 2005. Even more startling is that the Russell 2000 collapsed 12.1% this week, clearly one of the largest one-week debacles in history. For the year, the Russell is down 19.2%, while the Dow is off 22.1% and the S&P 500 is down 25.1%.

In some ways, it was an unusual session as the market initially shrugged off the negative employment report, instead rejoicing about a large banking merger deal between Wells Fargo (NYSE:WFC) and Wachovia (NYSE:WB). In addition, stock traders appeared to be basking in the glow that the House would certainly OK the rescue plan this time around. Earlier this week, House Republicans shocked the market by narrowly rejecting the $700 billion “Paulson Plan” but with the economy careening toward recession and a couple of tax break sweeteners added to the deal, there was little choice in an election year from lawmakers but to embrace (perhaps with gritted teeth) the rescue plan.

In typical “buy-the-rumor, sell-the-fact” market action, equities rallied into the House vote, then promptly reversed course and sold off in the afternoon. There was some sense that if the market weren’t so oversold and if talk wasn’t circulating that a potential emergency rate cut by the Federal Reserve might be in the works that the slide would have been even greater.

As for the employment report, 159,000 non-farm jobs were shed in September, the largest one-month decline in some five years, while the unemployment rate held steady at 6.1%. The market was looking for a loss of 100,000 jobs, so the number was worse than feared, but there were “whisper” numbers ahead of the release that were even worse. The bad news is that most economists are predicting the next two months will be even more painful as the economy deals with the credit crisis and the recent loss of huge financial firms. So, from a price standpoint today, . . .

Small-cap stocks reversed course Thursday, pulling back into the recent range as the credit crisis moved to the forefront, punishing financial stocks. The selling mood was also stirred by soft economic data and worries about consumer spending after sluggish sales at benchmark retailer Wal-Mart Stores (NYSE:WMT). In the end, the Russell 2000 (NYSE:IWM) shed 12.48, or 1.72%, to 713.42.

Large-cap financial stocks were getting hammered in the afternoon today, extending a gloom that began after Wednesday’s close when insurance giant American International Group (NYSE:AIG) reported hefty quarterly losses amid write-downs of bad mortgage loans. The whole mess with AIG rekindled fears about the credit crunch and investors dumped shares in a wide swath of financial names. AIG tumbled some 18% on the day. The nation’s top bank, Citigroup Inc. (NYSE:C) stumbled amid news that the firm would buy back some $7 billion in auction-rate securities and pay a $100 million civil fine to settle a suit that it misled investors on the risk of the investments. Citigroup lost about 6% on the day. Merrill Lynch & Co. (NYSE:MER) lost 8%, Lehman Bros. Holdings, Inc. (NYSE:LEH) tumbled 13%, JP Morgan Chase Co. (NYSE:JPM) was down 4% and mortgage finance firms Fannie Mae (NSE:FNM) and Freddie Mac (NYSE:FRE) were down 14% and 9%, respectively. The Financial Select SPDR was down 5%--and it’s not as if those declines are limited to the large-cap banks and brokerage houses. There are dozens of small- and mid-cap banks out there, and they have even more trouble accessing credit during the crunch than the big firms.

As you might expect...

Small-cap stocks opened lower, succumbing to a series of bad news events overnight, including massive quarterly losses at insurance firm American Insurance Group (NYSE:AIG), disappointing sales at discount giant Wal-Mart Stores Inc. (NYSE:WMT), a bounce in crude oil prices and sobering economic data on the jobs front. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was down 6.09, or 0.84% at 719.80.

The market was already on the defensive ahead of the weekly claims report this morning and when unemployment filings topped the forecast, it generated another leg down in futures ahead of the regular opening. Weekly claims were pegged at 455,000, which marked the largest weekly figure since March 2002. What’s more, the number was well above the forecast of 420,000 and simply adds another layer to ongoing concerns about the labor market. The continuing claims number rose to a fresh cycle high at 3.311 million. The Labor Department said that claims were goosed by a program to extend benefits, but it’s not exactly like the people who need an extension have found a job yet.

“Continuing claims, which are inversely related to job creation, jumped this week to their highest level since December 2003,” Steven Wood, chief economist with Insight Economics, said in an email. “This is an indication that hiring has weakened,” he said.

The pending home sales report, which came out at 10:00 a.m. ET, was up 5.3% and appeared to have limited impact on the market. Even with a gain during June, the number was still down 12% from last year...

The Russell 2000 (NYSE:IWM) is expected to open lower, pulled down by disappointing same-store sales from Wal-Mart Stores Inc. (NYSE:WMT), huge quarterly losses by insurance giant American Insurance Group (NYSE:AIG), troubling weekly unemployment claims and a jump in crude oil prices overnight. The Russell 2000 was down about 0.5% in after-hours trading, suggesting an open today near 721.50.

The weekly claims report came in at 455,000, which was well above the forecast for a decline to 420,000. The 4-week moving average for claims shot to 419,500 and continued claims are at 3.311 million. The recent surge in claims provides a troubling picture of the labor market, and undercuts hopes for economic recovery.

There was an expectation ahead of the July same-store sales reports that discounters like Wal-Mart and Costco (Nasdaq:COST) would outperform more expensive fare from the big department stores as we approach the “back-to-school” sales push. However, if WMT struggles, it sets a nervous tone for the entire group. It should be noted that COST did beat the forecast for sales, which takes a little of the edge off WMT’s disappointment...

After falling off slightly after the opening, small-cap stocks staged a swift rally but then deflated somewhat as oil continued to pull back for a second straight trading session amid mixed corporate earnings reports and as President Bush and the House came to an agreement on a housing bail-out plan.

At 12:30 p.m. ET, the Russell 2000 (NYSE:IWM) was up 0.68, or 0.09%, at 717.50 amidst a broad market rally. The Dow was up 4.39, or 0.04%, to 11,606.89, while the tech heavy Nasdaq gained 9.1, or 0.39%, to 2,313.06 as investors welcomed the deflation in oil prices, which may ease pressure on the consumer and businesses.

Crude oil prices slipped roughly $0.60 dollars a barrel to $127 midday, marking the second consecutive day the commodity has lost its mojo. Today, an increase in U.S. gasoline stockpiles added to the downward pressure on crude. The energy market has been sinking this week as Hurricane Dolly veers away from key production areas in the Gulf of Mexico and on worries about demand for high-priced crude oil amid sluggish economic conditions in the United States and new usage curbs in China.

As crude oil prices have slipped in recent sessions, the U.S. dollar is turning green again, rising against the euro and the yen in mid-day action. The assent in oil, has contributed to the dollars demise this past year, so naturally that correlation has reversed itself today. A stronger dollar often has a bearish impact on global commodity values since so many products are priced in dollars. Also on the commodities front, grains markets are expected to trade sharply lower today amid improving Midwest weather and the firm dollar tone.

President Bush dropped his veto against the House’s housing package that bails out struggling homeowners by offering $3.9 billion for areas containing the most foreclosures. The House is expected to vote on the bill as early as today. Additionally, lawmakers came to a mutual agreement that permits Treasury Secretary . . .

Small-cap stocks hovered near steady levels in early trade, pulled down modestly at times by sporadic profit-taking from short-term traders who caught the rally Tuesday and by a mixed tone on the earnings front. However, selling was limited by an extension in the crude oil pullback and by gains in overseas stock markets. At 9:50 a.m. ET, the Russell 2000 (NYSE:IWM) was up 1.24, or 0.17%, at 718.06.

Crude oil prices were down about $1 dollar a barrel shortly after the open, supportive to stocks, but the bounce above overnight lows took some of the upside steam away from equities. The energy market has been sinking this week as Hurricane Dolly veers away from key production areas in the Gulf of Mexico and on worries about demand for high-priced crude oil amid sluggish economic conditions in the United States and new usage curbs in China.

The decline in energy prices overnight was a boon to equity markets around the world, with Hong Kong shares up 2.7%, Taiwan up 3.5%, Japan up 1%, Australia up 2%, Singapore up 3%, South Korea up 1.9% and India up 5.9%.

In conjunction with the pullback in crude oil prices, the U.S. dollar has caught a bid the last couple of days. The greenback was up about 0.3% against the euro this morning and about 0.4% versus the yen. A stronger dollar often has a bearish impact on global commodity values since so many products are priced in dollars. Also on the commodities front, grains markets are expected to trade sharply lower today amid improving Midwest weather and the firm dollar tone.

The early glimpse of “big-name” corporate earnings was a mixed bag this morning, with fast-food giant McDonald’s Corp. (NYSE:MCD) topping the forecast and rising 1% overnight, but slipping into the red shortly after the open. Also, Pfizer Inc. (NYSE:PFE), the maker of Viagra, reported solid results and rose 2.8%. Conversely, Washington Mutual (NYSE:WM) reported sloppy earnings and was down 1.2%, while Costco (Nasdaq:COST) warned they would miss the Street’s forecast . . .

Small-cap stocks are expected to open higher, lifted by an extension in the crude oil pullback, solid action in the U.S. dollar and a decent tone on the earnings front. The Russell 2000 (NYSE:IWM) was up about 0.3% in after-hours trading, which suggests an open near 719.

Crude oil prices continued to slide after Tuesday’s big decline, and were down about $2 dollars a barrel heading toward the U.S. stock market open, with benchmark crude prices around $126.50. The decline in energy levels was tied to ideas that Hurricane Dolly would not threaten a large portion of production in the Gulf of Mexico.

The downdraft in energy prices this week has been accompanied by a resurgent U.S. dollar, which was up about 0.2% against the euro and 0.4% versus the yen just in front of the stock market open.

On the earnings front, McDonald’s Corp. (NYSE:MCD) topped the forecast, was up about 2% in after-hours trading and should provide a lift to large-cap index products. Pfizer Inc. (NYSE:PFE) was up about 3% after solid results, but Washington Mutual (NYSE:WM) was off about 3% before the opening bell after sloppy quarterly results. Also, wholesaler Costco Wholesale Corp. (Nasdaq:COST) was down . . .

Small-cap stocks took flight Thursday, soaring in response to strong chain store sales, and a bullish surprise on weekly unemployment claims. The Russell 2000 (NYSE:IWM) shot up 19.55, or 2.63%, to 763.26, the highest daily close of the year.

In the process, the Russell stormed through key long-term resistance at 750, a point that had been difficult to tackle in recent weeks. That area represented a 50% Fibonacci retracement of the entire bear market collapse, and sets the stage for a rally toward the final key retracement of 61.8%, which is near 775. The market could pause near 760, which is a logical chart-related resistance area on the way toward 775. A weekly close above 750 after jobs Friday would be an important benchmark within the ongoing rally off the March lows.

The strong performance was impressive in front of Friday’s employment report, which suggests that shorts were no longer willing to risk losing trades in front of the big release, and that new longs were comfortable taking on positions ahead of the jobs event.

The catalyst for today’s rally appeared to center on surprisingly stout monthly chain-store sales results. Apparently gasoline pump prices near $4 dollars a gallon didn’t stop consumers from heading out to the store to unload some of their tax rebate money from Uncle Sam. With the U.S. economy heavily dependent on spending for momentum, a show of strength from retailers is a welcome sign to the market.

Among retailers, discounters like Costco (Nasdaq:COST) and Wal-Mart (NYSE:WMT) had particularly impressive results, with Costco comp sales up 9% in May and Wal-Mart up 3.9%. Wal-Mart’s stock embraced the news, surging 3.5% to four-year highs. Costco was up 3.4%. And it wasn’t just a large-cap story on the retailer front. Small-caps Hot Topic Inc. (Nasdaq:HOTT) jumped some 16% as sales at the pop culture apparel and accessories store came in much better than feared. Also, Cache Inc. (Nasdaq:CACH) rose about 14% as sales at the specialty women’s apparel store . . .

Small-cap stocks pushed higher on the opening, supported by better-than-expected weekly unemployment claims numbers and solid May chain store sales figures. However, the market was still on edge about the re-emergence of credit crunch jitters and, to some degree, simply marking time before Friday’s big jobs report. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 5.91, or 0.79%, at 749.62.

The weekly claims report headline figure came in at 357,000, which was much better than the forecast of 375,000. Typically, the weekly claims data is a minor blip on the numbers agenda, but with the monthly employment report on tap Friday, investors had a little extra interest in the numbers this week. Also, the ADP payroll figures were surprisingly strong Wednesday, which raises hope that Friday’s big jobs release could carry a bullish surprise.

Chain store sales results have been pouring in this morning, sporting solid numbers for discounters in particular. Costco (Nasdaq:COST) same-store sales in May were up 9% and Wal-Mart (NYSE:WMT) reported a 3.9% rise in sales. Costco shares were up 1.9% after the opening, while Wal-Mart was up about 1.8%.

Investors are expected to keep a close watch on financial stocks again today, particularly Lehman Bros. (NYSE:LEH), which is at the eye of the latest credit crunch storm. Lehman Bros. shares were up 2.5% in early trading today. Federal Reserve vice chairman Donald Kohn is testifying about the banking system this morning before the Senate, Banking, Housing and Urban Affairs Committee.

The dollar relinquished overnight gains against the euro and is now down about 0.6% against that currency unit, but was still up nearly 0.8% versus the yen. A strong dollar should keep pressure on various commodity markets, and is seen as supportive to stocks at this stage of the economic cycle.

Speaking of commodities, crude oil prices were pushing higher into the stock market opening in line with the rise in the euro against the dollar, but were still well off the recent record highs and not that far away from four-week lows. The recent slide in energy prices has provided a little breathing room for airlines, which also stand to benefit from an analyst upgrade overnight on United Airlines (Nasdaq:UAUA) and Northwest Airlines (NYSE:NWA). United Airlines was up 6.8% after the . . .

Small-cap stocks were projected to open higher, lifted by solid chain store sales numbers so far today, a rise in the dollar and a better-than-advertised weekly unemployment claims report. The Russell 2000 (NYSE:IWM) rose about 0.4% in after-hours trading, which would translate to an opening near 746.70.

Weekly claims were released at 8:30 a.m. ET, and came in at 357,000, well below the forecast of 375,000. With the ADP payroll report showing a rise in jobs Wednesday, and the weekly claims better than expected today, it will heighten hopes for a jobs report Friday that is better than the median forecast.

Monthly chain store sales numbers were strong for discounters Costco (Nasdaq:COST) and Wal-Mart (NYSE:WMT), and both stocks were up over 1% in after-hours trading. May same-store sales numbers were up 9% for Costco and up 3.9% for Wal-Mart.

The dollar was firm overnight, climbing to the highest point since late February against the yen, and rising about 0.3% versus the euro.

On the inflation front, crude oil prices remained well off the record highs set last week, hovering near four-week lows. Meanwhile, gold slipped to a three-week low. The recent pullback in energy has been a supportive element for battered airline stocks, and United Airlines (Nasdaq:UAUA) and Northwest Corp. (NYSE:NWA) were . . .

Small caps edged higher Friday, underpinned on buying in the tech sector, benign economic data and by traders eager to put money back into stocks after a solid showing this week. Buying interest was curbed however, from those willing to book month-end profits and by lingering concerns about lofty energy and commodity prices. The Russell 2000 (NYSE:IWM) finished out the day up 2.73, or 0.37%, at 748.28.

For the month of May, the Russell rose 4.5%, climbing to the highest monthly close since December. Small caps trounced many of the large-cap index products this month. The Dow was actually down 1.4% in May, while the S&P 500 was up 1%.

The star performers today came from the tech arena, buoyed by impressive earnings from bellwether stock Dell Inc. (Nasdaq:DELL) and by chip designer Marvell Technology Group (Nasdaq:MRVL). The two stocks jumped 6.8% and 23.5%, respectively. The rise in tech stocks today bolstered investor psychology about consumer spending issues amid a difficult economy. Other big-name tech firms attracting buyers today included Cisco (Nasdaq:CSCO) and Hewlett-Packard (NYSE:HPQ). The Philadelphia Stock Exchange’s key index on semiconductor shares (CVE:SOX) jumped 2.3%.

Although tech generated much of the power for today’s move (the Nasdaq was up 0.6%, while the Dow was down 0.06% and the S&P 500 up 0.15%), the insurance business got a lift from American Insurance Group (NYSE:AIG), which gained 2.3% on an upgrade from analysts at Morgan Stanley.

Retailer and beverage shares weren’t joining the buying party however, with Costco (Nasdaq:COST) down 2.4%, Target (NYSE:TGT) down 0.4% and Pepsi (NYSE:PEP) off 0.5%. The S&P Retail Index was off about 0.5% for the day.

The market managed to dodge any potential data pitfalls today, as economic reports on income, inflation, manufacturing purchases and consumer sentiment all basically came in benign. Perhaps the biggest relief was on the inflation front, as today’s personal income report showed that the PCE deflator — considered the . . .

Small-cap stocks opened lower, pulled down when a fresh batch of economic reports failed to generate any upside surprises. The decline was short-lived, though, as prices pushed slightly into the green within 15 minutes of the opening. A small tug of war between those disappointed by the morning reports and those upbeat by an overnight drop in crude oil and rising retailer shares seemed to be underway. At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was up 0.67, or 0.09%, at 739.12.

Economic data on weekly claims and GDP came out before the opening today and while neither report was strikingly bad, they also didn’t carry any bullish news to sustain a mild overnight rise in stocks. The weekly claims report attracted the most attention because the number came in above the forecast at 372,000 versus 370,000 claims, and last week’s figure was revised upward by 3,000 to 368,000. The GDP report hit the median forecast for a rise to 0.9%, but didn’t carry the same kind of power it did last month when a mild rise in GDP was cause for celebration for stocks.

“The bottom line is that economic growth remained very weak at the beginning of the year. These data are ancient history, as Q2 is nearly two-thirds over. Data released so far for April and May suggest that Q2 growth will also be very soft and perhaps even negative. There is still a definite risk for an outright contraction in Q2,” Steven Wood, chief economist with Insight Economics, said in an email.

As for the weekly claims report, Wood said that the four-week moving average is settling in near 370,000, up about 45,000 than the average last year. He said that continuing claims, which are inversely related to job creation, jumped this week and have been rising steadily for almost two years, which suggests that hiring has weakened. The claims data take on a little extra punch this week because next Friday serves up the monthly employment report, and today’s data indicates another . . .

Small-cap stocks are expected to open slightly lower Thursday, pulled down by a rise in weekly unemployment claims data, and a GDP report that failed to deliver any upside surprise. The Russell 2000 (NYSE:IWM) was expected to open near 737.

The GDP headline figure matched the market forecast for a rise of 0.9%, but the claims report showed an increase in this week’s figure to 372,000, and an upward revision to last week’s report to 368,000, from 365,000. The initial reaction to the data spree was about a two-handle dip in S&P 500 futures.

The dollar was on firm footing overnight, which should be a supportive element in play for stocks this morning. Even after the market showed slight disappointment with the economic reports, the dollar still was up about 0.4% against both the euro and the yen.

Overseas stock market activity was mostly higher, which also could underpin U.S. equities early on today. Japan shares jumped 3%, while Hong Kong was up 0.5%, South Korea up 2.2%, Australia up 1% and Singapore up 0.8%.

Large caps in the news this morning include Sears (Nasdaq:SHLD), which posted a surprise loss in the first quarter, and whose shares took a beating overnight, at one point down about 4%. However, the retail news was mixed, with Costco (Nasdaq:COST) up about 1.9% on strong earnings numbers.

On the small-cap front, US Airways (NYSE:LCC) gained about 6% overnight . . .

Small-cap shares had an uneventful session Thursday, hovering near steady levels much of the day while posting one of the quietest daily ranges seen this year. In the end, the Russell 2000 (NYSE:IWM) gained 3.33, or 0.47%, to 719.55. Earnings results from American International Group (NYSE:AIG) came out about 15 minutes after the close, and how AIG fares overnight could play a key role in the opening mood for Friday for financial shares and the market in general.

Early on today the market found support by short-covering from quick turn traders who caught the slide yesterday. In addition, weekly chain store sales and the morning economic data were supportive, which brought some bids into play.

The chain store report reflected decent sales for Wal-Mart (NYSE:WMT) and Costco (Nasdaq:COST), and was expected to play a supportive role for retailers overall. However, the tone was mixed to soft much of the day for retailer shares, and in fact department stores, home improvement retail and general merchandise stores were all lower within the S&P sector groups.

As for the economic data, weekly claims were below forecast and the wholesale inventory data was also above the median projection. While weekly claims caught some attention as bullish news, the market was little changed in the immediate aftermath of both reports. In general, recent economic data out of the United States has tended to surprise on the upside, but with prices pulling back off three-month highs, perhaps traders will need to see more dramatic surprises to spark . . .

After a brief opening bounce, small-cap stocks are down slightly from Wednesday, but have been mostly steady in Thursday’s session. At 12:03 p.m. ET, the Russell 2000 (NYSE:IWM) was down 0.02, or 0.17%, at 716.04.

After skyrocketing crude oil sent stocks earthward during Wednesday’s action, sturdy results from Wal-Mart (NYSE:WMT) and Costco (Nasdaq:COST) offered early encouragement to traders. In the midday session, Wal-Mart is up 1.3% while Costco is down 0.1%. Also supporting bullish sentiments was footwear maker Crocs Inc.’s (Nasdaq:CROX) offered a solid outlook for the remainder of the year. CROX is up more than 16% shortly before noon.

Soaring crude oil futures eased somewhat to $122.53 a barrel after touching a record-high of $123.93. The dollar is stronger against the euro at $1.5395 after . . .

Small-cap stocks were treading water near steady levels, unable to sustain an opening bounce that was tied to short profit-taking from traders who caught the slide yesterday and by decent weekly chain store sales. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was up 0.19, or 0.03%, at 716.40.

The weekly chain store sales report was up 1.4% versus the same week last year and reflected a solid showing by Wal-Mart (NYSE:WMT) and Costco (Nasdaq:COST), which could provide a lift throughout retailer shares this morning. However, Wal-Mart was basically flat early on, and Costco was down about 1.5%. On the plus side on the retail front, plastic shoe maker Crocs Inc. (Nasdaq:CROX) jumped 24% on the opening after investors embraced the company’s outlook for the rest of the year. Crocs has been sinking like a rock since February, which puts today’s rally in a different perspective.

On the economic data front, the weekly claims data came in slightly better than the median forecast at 365,000 versus 375,000, but the report had very little impact on the market. The 10:00 a.m. ET wholesale inventories report came in soft at down 0.1% compared with the forecast for a gain of 0.5%. However, the wholesale inventory report is for March data, is considered dated by many traders and had almost no impact on prices when released.

Price action for small caps was bleak yesterday, with the Russell 2000 generating a bearish outside reversal on daily charts and faltering near a familiar zone that stopped the recovery back in early February. Some of the short-term players . . .

Small-cap stocks are expected to open in the green Thursday, lifted by an oversold bounce posted in overnight action. The Russell 2000 (NYSE:IWM) was up about 0.4% in after-hours trading, which would translate to a cash opening near 719.

Short-term momentum readings were overdone on the downside by Wednesday’s harsh decline, and day traders who caught the move could be quick to pocket profits. In addition, several retailer stocks appear to be on solid footing to start the day after Wal-Mart (NYSE:WMT) and Costco (Nasdaq:COST) posted decent sales. What’s more, the weekly chain store sales report rose 1.4% versus the same week from last year, and the numbers overall were better than expected. Crox Inc. (Nasdaq:CROX) shot up some 16% in overnight trading, as investors overlooked a first quarter loss to embrace the plastic shoe maker’s rosy Q2 and yearly outlook.

Overseas equities markets were flat to lower, with European shares hovering near steady levels moving toward the U.S. opening. Asia shares were on the . . .

Monterey Gourmet Foods Inc. (Nasdaq: PSTA) has over the past 18 years transformed itself from a local purveyor of fresh pastas sold out of a Monterey, Calif., storefront to a publicly traded diversified prepared foods business that enjoys steadily growing revenues from a number of major food chains in the United States and abroad.

And investors have still not grasped its success. The Salinas, Calif., company’s stock established a 52-week low of $3.60 just last week, about six months after the year-high of $4.83 was put into place. On Wednesday Monterey closed at $3.65. 

Clearly, there have been some challenges over the past year, most notably an aggressive realignment in which sales and marketing operations for the company’s multiple brands were consolidated and manufacturing was streamlined. Costs associated with this realignment helped produce a $3.1 million net loss last year.

But the company is now generating quarterly profits and is projected to become profitable for all of 2007, suggesting that its consolidation costs are mostly behind it.
Two analysts who follow Monterey have a mean estimate for a $0.13 per share profit this year, compared with a loss last year of $0.19. They project revenues will grow to $105.5 million in 2007 and $118.8 million in 2008. The company’s revenues totaled $94.3 million last year, up from $85.3 million in 2005 and $65.2 million in 2004.

Earlier this month, Monterey reported a second quarter net profit of $464,000, or $0.03 per share, compared with $146,000, or $0.01 per share, a year earlier, and said revenues grew to $24.5 million from $23.1 million.

The stock price of Retalix Ltd. (Nasdaq: RTLX), which supplies software for retailers, fuel stations and foodservice organizations, has been rising like the price of gasoline at the beginning of a warm summer season.

Since the beginning of the year, its stock has risen 37%, from about $16 at the end of December to around $22 today. On May 21, Retalix announced earnings that handily beat analysts’ expectations, and the stock was pushed up nearly 8% in two days, from $20.80 to $22.40.

But don’t get too excited yet. Those numbers reflect a partial recovery from a dismal 2006. And a closer look at its most recent earnings statement suggests that it still isn’t fully back in the express lane.

Retalix started out as a supplier of software for point-of-sale (POS) systems for retailers. Its software is used in POS platforms from companies such as International Business Machines Corp. (NYSE: IBM) and NCR Corp. (NYSE: NCR), although those companies also compete with Retalix with their own software. The Israel-based company sells products in more than 50 countries, and is operating in over 16,000 grocery stores in the United States and 42,000 worldwide. Its customers include The Kroger Co. (NYSE: KR), Costco Wholesale Corp. (Nasdaq: COST), Super-Sol Ltd. (Israel’s largest grocery retailer) and BP plc’s (NYSE: BP) chain of gas-and-convenience stores.

A couple years ago, Retalix started expanding into other software solutions for its niche markets. It made a couple acquisitions to move into back-office software to help manage inventories, customer relationships and supplier relationships, among other things. A warehouse management system, for example, is more efficient if it can easily synch up inventory numbers as POS terminals record a new sale.

The company is also helping to bring grocers into the Internet age. A Retalix subsidiary, StoreNext Retail Technologies, provides hosted electronic payment systems to independent grocers. In early May, StoreNext announced a collaboration with Earthlink, Inc. (Nasdaq: ELNK) subsidiary New Edge Networks, allowing StoreNext to resell New Edge’s broadband networking and internet services to North American grocery stores.