Tag - Fbn

Small caps closed up about 2% today, outperforming the Dow for the day yet still lagging the big-cap index for 2008, with the Russell 2000 (NYSE:IWM) off 41%, the Dow down 35% and the S&P 500 down 41%. Some of today’s small-cap gainers are QC Holdings (Nasdaq:QCCO), Polypore International (NYSE:PPO) and Furniture Brands International (NYSE:FBN).

Other Market Watch highlights today included:

• The ADP headline figure suggested the nation lost 250,000 payroll jobs in November, which was below the forecast for a decline of 200,000.
• The ISM Non-Manufacturing Survey came out at 10:00 a.m. ET, with the headline figure at 37.3%, which was way below the forecast of 42.8%.
• The ability to rally after a bad reading on the ADP Employment Survey ahead of Friday’s big monthly employment report was a positive sign. 
• Yields on Treasury products were higher as demand clearly was more focused on riskier fare today.
• The weekly MBA Mortgage Application index jumped 112% today to the highest level since mid-February, encouraging the rally.
• The ISE Homebuilders Index jumped 10% and small-cap homebuilders were among the best performers in the group.
• Crude slipped $0.17 a barrel to $46.79 and notched 3-1/2-year lows during the U.S. trading session despite a drop in inventory levels.
• Banks, brokerages and other financial firms were clearly a source of strength for stocks today.
• Energy stocks were a drag on stocks for most of the day, and the Energy Select Sector SPDR was basically flat right before the close. 

Small Cap Gainers:

• QC Holdings Inc. (Nasdaq:QCCO) jumped 54% on a volume spike without any apparent fresh news from the payday loan firm.
• Polypore International Inc. (NYSE:PPO) jumped 31% as the lithium-ion battery company announced that one of their subsidiaries received a $2.3 million contract.
• Furniture Brands International (NYSE:FBN) closed up about 26% . . .

Furniture Brands International Inc. (NYSE:FBN) is off 8% today after the company lowered its 2008 guidance after the close on Tuesday. The company now expects a net loss per share for 2008 of $0.49 to $0.55, compared with previous estimates of $0.40 to $0.60. The company lowered net sales to between $1.75 billion and $1.8 billion, down from prior forecasts of $1.9 billion to $2 billion.  

Furniture Brands is a St. Louis, Mo.-based home furnishings retailer, which has been hit hard by the slump in the economy and lower consumer spending. The stock is down more than 34% from a year ago. In today’s trading, shares are at $9.35 at 9:54 a.m. ET, down $0.87 from Tuesday’s close. Shares have ranged from $6.82 to $15.46 during the past year.

Virtusa Corp (Nasdaq:VRTU), Interactive Intelligence Inc (Nasdaq:ININ) and MGIC Investment Corp (Nasdaq:MTG) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Furniture Brands International Inc (Nasdaq:FBN), LIN TV Corp (Nasdaq:TVL), TowneBank (Nasdaq:TOWN), Orthofix International NV (Nasdaq:OFIX), Teche Holdings Company (Nasdaq:TSH) and MainSource Financial Group Inc (Nasdaq:MSFG).

Here are the biggest percentage losers among small caps:

After opening higher, small caps have cascaded into the red midday, despite a continued sell off in crude from its record levels throughout the session and ahead of second-quarter earnings.

At 12:51 p.m. ET, the Russell 2000 (NYSE:IWM) was down 8.35, or 1.25%, at 657.43, while the Dow was down 63.67, or 0.56%, at 11,224.87.

After breaching a new record level of above $145 a barrel ahead of the July 4th weekend, crude oil futures pulled back sharply today. Crude is off $5.12 to approximately $140 a barrel midday. The commodity is still up some 50% for the year.

Oil prices are seeing downward pressure, as tensions in the Middle East are deflating in the minds of oil traders. Iran's foreign minister Manouchehr Mottaki said in an interview with CNN on Sunday that Iran is now assessing western governments with a new point of view. The Iranian foreign minister also suggested Iran might entertain the idea of a compromise with its nuclear program. Also, the country is expected to meet with the European Union's head of foreign policy surrounding the country’s nuclear program.

Oil also sold off as the dollar rallied. The greenback was buoyed by weak output numbers in Germany and the United Kingdom as well as resistance to sell the dollar in the midst of the G-8 leaders open summit meeting today in Japan.

“For the U.S. dollar, it's a question of a global economic race to the bottom between Japan, Europe and the United States,” Andy Busch, global foreign exchange strategist for BMO Capital Markets, wrote in an email. “Whoever hits first and bounces wins.”  

Bottom fishers were prowling the Street earlier in the session, as valuations have been knocked down to the cheapest level since April. However, probable jitters that prelude second-quarter earnings results seemed to have superseded the low valuations that had clouded investors’ actions earlier today. Quarterly earnings results are expected to begin trickling in Tuesday, as Alcoa kicks off the season. Analysts expect this to be the fourth consecutive quarter of negative earnings. Analysts expect . . .

Furniture Brands International Inc. (NYSE:FBN) is skidding 20% in today's trading, as other furniture manufacturers fall along with it. The St. Louis-based home furnishings company, like many other furniture producers and marketers, has suffered from the sluggish economy and lower consumer spending. Furniture Brands International announced late in June it would close its High Point, N.C. plant, eliminating about 300 jobs. The company said industry pressures lead to the closure, and the plant is expected to shut by the year’s end.  

Furniture Brands International is at $9.75, about $2.38 lower than Friday's close. The company is down more than 30% from a year ago.

Shares of Furniture Brands International, Inc. (NYSE:FBN) are gaining on news before the opening that the furniture maker has sold its business furniture unit to HNI Corp. (NYSE:HNI) for $75 million.

“This transaction puts our focus solely on the home furnishings industry,” CEO Ralph Scozzafava said in a statement.

At 12:43 p.m. ET, the stock had added $0.90, or 8%, to $12.18.

The Russell 2000 (NYSE:IWM) raced ahead on news that a manufacturing index declined less than expected. The small-cap index advanced 17.29 points, or 2.60%, to 681.42. The Dow Jones Industrial Average (INDU) climbed 261.66 points, or 2.16%, to 12,361.32.

On a year-to-date basis, the Russell 2000 has shed 11.05%, while the Dow is down 6.81% and the S&P 500 has retreated 9.46%.

Small-cap stocks opened with a modest rise but picked up steam after 10 a.m. ET, when the Philadelphia Federal Reserve reported that its index of regional manufacturing activity showed a reading of -17 in March, while economists had forecasted -20. The reading for February was -24.

The report is the most-watched regional manufacturing index, considered to be a barometer of manufacturing nationwide. Investors disregarded the fact that the data represent the longest period of contraction in five years and pushed stocks higher.

In other bullish news, an analyst said that mortgage purchases by Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) will help right the mortgage market. Today the federal government adopted changes that allow the two companies to invest more in mortgages and related securities.

The Russell 2000 (NYSE: IWM) lost more than the other major U.S. indices as news of disappointing economic reports spread recession fears. The small-cap index declined 13.74 points, or 1.94%, to 696.28. The Dow Jones Industrial Average (INDU) fell 142.96 points, or 1.15%, to 12,284.30.

On a year-to-date basis, the Russell 2000 has declined 9.11%, while the Dow is down 7.39% and the S&P 500 has retreated 8.57%.

Small-cap stocks erased early gains and declined sharply as investors focused on news of a weak economy.

The U.S. Labor Department reported that jobless claims for the week ended Feb. 16 fell 9,000 to 349,000 from the preceding week’s upwardly revised total of 358,000.

Economists were expecting a rise to 349,000 from an originally reported 348,000.

However, the more stable four-week measure increased 10,750 to 360,500, the highest average in more than two years.

“The jobless claims number is consistent with a softening labor market,” said Arun Raha, vice president of Economic Research and Consulting for the North American operations of reinsurance company Swiss Re, in an email. “Firms have moved from not hiring to laying off workers.”

The Russell 2000 (NYSE: IWM) is falling on news of a weak regional manufacturing index. At 1:11 p.m. ET, the small-cap index had dropped 7.08 points, or 1%, to 702.94. The Dow Jones Industrial Average (INDU) was down 106.08 points, or 0.85%, to 12,321.18.

The Philadelphia Federal Reserve’s regional index of manufacturing conditions fell to -24 in February from a reading of -20.9 in January, according to an announcement after the start of trading.

Economists were expecting to see a slight increase from the level in January, which was the lowest reading since 2001. A reading above zero indicates an expansion.

The future general activity index turned sharply negative, declining to -16.9 from 5.2 in January.
The numbers point to economic weakness and again raised fears of a recession.

Small-cap stocks quickly erased all of their earlier gains and dropped to the flat line shortly before 11 a.m. ET. The Russell 2000 stayed level until 12 p.m. ET, when the bears gained control.

Furniture Brands International, Inc. (NYSE: FBN) shares are dipping after the St. Louis-based firm reported it swung to a third-quarter net loss of $13.7 million, or $0.28 per share, below analyst estimates of earning $0.01 per share and down 336% from a profit of $5.8 million, or $0.12 per share, a year earlier.

“Our financial results for the third quarter were as expected, as the home furnishings industry continues to show the effects of cautious consumer spending,” CEO Mickey Holliman said in a statement. “As one of the nation's largest residential furniture manufacturers with a diverse portfolio of respected brands, we are well-positioned to weather these challenges going forward.”

The parent company of Thomasville and Broyhill furniture makers reported quarterly sales of $516.3 million, above analyst estimates of $500.8 million and compared with $568.9 million a year earlier.

Holliman said the company’s strategic plan, which was announced last week, will return the business to profitability. The plan will entail selling its commercial furniture operation and a greater focus on mid- and high-end residential furnishings.

During the fourth quarter, he said the company expects charges related to retail store closings to total between $0.18 and $0.22 per share.

In afternoon trading, FBN shares are down 9.54%, or $1.15, at $10.90. Over the last 52 weeks, shares have ranged from $9.26 to $18.95.

Furniture Brands International, Inc. (NYSE: FBN) shares are soaring on news that a group of investors from Taiwan and Hong Kong is considering taking control of the company. Samson Holding Ltd., a Hong Kong-based investment holding company, has acquired 14.9% of Furniture Brands International, according to a regulatory report filed today.

Furniture Brands’ Securities and Exchange Commission filing also revealed that Samson approached the company in July with a merger offer, which Furniture Brands declined. The filing revealed that Samson is considering furthering its stake in Furniture Brands through privately negotiated transactions, open-market purchases or a tender offer.

Samson’s 14.9% stake, worth almost $72 million, makes the holding company Furniture Brands’ largest individual investor.

At closing, FBN shares were up 34.91%, or $3.54, at $13.68. Over the last 52 weeks, shares have ranged from $9.26 to $20.96.

Residential furniture company Furniture Brands International (NYSE: FBN) downgraded its third quarter guidance this morning due to recent adverse business trends.

Due to the continuation of a softening business environment and weakening order flow, the St. Louis, Mo.-based company said that it now expects net sales for the third quarter to decline 12% and anticipates a net loss in the range of $0.19 to $0.23 per share.

The company previously guided for a net loss of between $0.19 and $0.15 per share. Three analysts polled by Thomson Financial were expecting earnings of $0.05 per share.

Furniture Brands will report actual results for the third quarter, which ends September 30, on Oct. 31, 2007.

Shares of Furniture Brands (FBN) slid $0.52, or 4.81%, to $10.30 ahead of the opening.

Residential furniture company Furniture Brands International, Inc. (NYSE: FBN)  traded up 7.01% or $0.95 to $14.50 in after-hours trading Wednesday after the company announced that it expects second-quarter sales declines will be smaller than earlier estimated.

The St. Louis-based company now anticipates that earnings in the second quarter ended July 31, 2007 will clock in at a loss ranging from $0.03 to a loss of $0.07, compared with the analyst consensus of a loss of $0.08 per share. The expected loss includes $0.02 in restructuring, asset impairment and severance charges.  Net sales for the second fiscal quarter are expected to be down only 12%, compared with the company’s originally anticipated 15% decline.

“Retail conditions remain challenging across the industry,” said CEO W.G. Holliman. “We continue to pursue cost savings and strategic opportunities in light of these difficult conditions.”