Tag - Gksr

G&K Services Inc. (Nasdaq:GKSR) is down 5% after falling to a new 52-week low this morning on the news that its fiscal first-quarter revenue will be lower than expected and that it will be implementing a series of cost-cutting measures.

In a statement issued after the bell on Monday, G&K Services blamed ongoing economic softness for the moves. The Minneapolis, Minn.-based provider of branded identity apparel programs and facility services said it plans to close three plants, cut jobs and outsource certain plant functions in an effort to reduce expenses.

For the fiscal 2009 first quarter, the company now expects earnings of $0.07 to $0.09 per diluted share and revenue to be in the range of $245 to $246 million.

Analysts polled by Thomson First Call were expecting earnings per share of $0.56 on revenue of $251.6 million.

By midday, G&K Services is at $28.81, down $1.20 from Monday's close, after having fallen as low as $24.49 earlier in the day. Previously, the stock had traded between $28.08 and $44.46.

For detailed price information and news stories on G&K Services, click GKSR.

Small-cap stocks slipped back into the red after opening solidly higher. The opening brush into the green was powered by news that the Federal Reserve would open a commercial paper window that should help businesses fund operations. Additional support was tied to oversold conditions and bottoming patterns on daily chart studies after Monday afternoon’s recovery bounce that attracted some cautious bargain-hunting. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.24, or 0.21%, to 594.67.

The Fed’s announcement on commercial paper appeared to be the punch that truly packed power this morning, sparking some thought that this move could help unclog credit lines. Those concerns remained very much in play into this morning’s trading when inter-bank lending rates were still tight overnight. In addition, the commercial paper facility could take some of the edge off the calls for an emergency rate cut, which already seemed unnecessary at this stage since Fed funds have been trading below the target 2% level often in recent days anyhow.

That said, central bankers in Australia announced a stunning 100-basis-point decline in rates overnight, which did spark optimism for hefty coordinated rate cuts in the West as well. PIMCO, which manages the largest bond fund in the world, has already been calling for the Fed funds target to be slashed by 100 bps, preferably in concert with cuts by other worldwide central banks.

Price gyrations in futures markets right before the opening were volatile and extreme, with S&P 500 futures soaring 12 handles, tumbling 14 handles, then jumping 20 handles in the 30 minutes before the real opening. At first the market was underpinned by oversold conditions, then pulled down on disappointment when the Fed simply announced the timing for auctions already planned, then it roared back again when the Fed said they would start a new commercial paper facility. Tossed into the wacky seesaw trading were headlines that Iran forced down a U.S. fighter . . .

Digi International Inc. (Nasdaq:DGII), LCA-Vision Inc. (Nasdaq:LCAV) and G&K Services, Inc. (Nasdaq:GKSR) were among the new 52-week lows established during Tuesday's trading among companies with market capitalizations or values under $750 million.

RadiSys Corp. (Nasdaq:RSYS), United America Indemnity, Ltd. (Nasdaq:INDM) and Escalade, Inc. (Nasdaq:ESCA) were also among the 52-week small-cap lows.

Here are Tuesday's 52-week small-cap lows:

Small-cap stocks edged lower Tuesday, with the Russell 2000 (NYSE:IWM) sinking 6.44, or 0.89%, to 718.93. Small caps had plenty of good news to embrace Tuesday, but a wave of sloppy earnings and cautious profit-taking from longs ahead of Wednesday’s FOMC announcement kept the buyers at bay. Small caps noticeably underperformed relative to the Dow and S&P 500, which is a caution signal for the market heading toward huge economic calendar event risk the rest of the week.

Losses were limited by a firm U.S. dollar, which pushed about 0.6% higher versus the euro, rising to the highest point in three weeks. The firm greenback played a role in a sharp retreat in crude oil prices, which tumbled 2.5% in the shadow of yesterday’s record high level. Retail, transportation and airline stocks received a boost from the pullback in energy prices. The commodity spectrum in general was lower Tuesday, with the Commodity Research Bureau Index of commodity prices down 1.8%, pulled lower by the slide in energy and also by a corrective dip in grains a day after corn prices hit record levels.

Within broad market sectors, food retail stocks were up 5%, airlines up 3% and education services were up almost 3%. Meanwhile, fertilizer shares were down 8%, metals and mining were down almost 5%, and agricultural products were down about 4%.

The stock market has been on an impressive upside push since March lows, with the Russell rising about 12%, the Dow up 9.5% and the S&P 500 up about 10%. Given the solid return generated for bulls lucky enough to have caught this brush higher, it’s . . .

Intevac, Inc. (Nasdaq:IVAC), Digi International Inc. (Nasdaq:DGII) and Royal Bancshares of Pennsylvania, Inc. (Nasdaq:RBPAA) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $750 million.

LCA-Vision Inc. (Nasdaq:LCAV), G&K Services, Inc. (Nasdaq:GKSR) and TheStreet.com, Inc. (Nasdaq:TSCM) are also among the top small-cap percentage losers.

Here are Tuesday's biggest percentage losers among small caps:

Small-cap stocks opened lower, slightly trimmed losses after the Consumer Confidence report came out at 10:00 a.m. ET, but then retreated right back to pre-release levels. The report showed an upward revision to the March report, which provided a brief bid to the market, but it was not enough to catch hold (at least immediately). At 10:01 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.84, or 0.25%, at 723.53.

The Consumer Confidence report was pegged at 62.3 in April, which was in line with the forecast of 62, but the March number was revised upward to 65.9 versus 64.5. Still, the April figure was the lowest in five years.

Next on line … President Bush is slated to hold a press conference at 10:30 a.m. ET, where he is expected to talk about the economy.

The opening action was soft in line with overnight declines on a dip in European shares as Deutsche Bank posted its first quarterly loss in five years, and French tire company Michelin tumbled 9% on sloppy earnings.

Large-cap companies influencing trade this morning included drug company Merck & Co. (NYSE:MRK), which was down 7% on news that the FDA rejected a new cholesterol drug. From an overall stock market picture, the news had a somewhat muted impact, because it lifted Merck competitor Abbott Labs (NYSE:ABT) by 4%. In addition, Visa (NYSE:V) posted decent earnings ahead of the opening, but the financial firm was down 3% in early action.

The S&P 500 stalled approaching the 1,400 level on the latest push upward, and that key figure resistance will be closely watched through the rest of the week’s major economic events. In the Russell 2000, the market yesterday climbed . . .