Tag - Mrk

Stocks moved higher today after several positive reports reversed early downward trading trends. Investors initially drove down stocks on news that first time unemployment claims increased by 15,000 last week.

Gains were made in homebuilders like Lennar (NYSE:LEN), KB Homes (NYSE:KBH), and Toll Brothers (NYSE:TOL) as well as retailers like Bed Bath & Beyond (Nasdaq:BBBY), Kirkland's (Nasdaq:KIRK), and Pier One (NYSE:PIR). Both sectors have seen bankruptcies (Linens and Things, Circuit City, among others) and layoffs over the past year as the souring economy has brought housing starts to a crawl and forced consumers to pull back in discretionary spending.

The broader indexes were up today with the Dow finishing at 8,472.40, the Nasdaq showing positive gains to close up 37.2 points to close at 1,829.54, and the S&P 500 posting a 2.14% gain to close at 920.26.

Small-cap stocks in the Russell 2000 helped propel that index 2.87% to close at 509.14 today.

Leading small-cap gainer was Jazz Pharmaceuticals (Nasdaq:JAZZ) up 37% on news that the late-stage results for its fibromyalgia drug had met the company's main goal. The drug, Xyrem, is scheduled to be submitted for marketing approval. Gains in Jazz shares outpaced gains made by other, better known, pharmaceutical manufacturers including Pfizer (NYSE:PFE), Merck (NYSE:MRK), and share price losses posted by GlaxoSmithKline (NYSE:GSK).

As we've mentioned in previous updates, this follows a general trend of sector rotation as investors are looking for more defensive plays, like healthcare and pharma, over the summer.

Other small-cap gainers for today include CPI International (Nasdaq:CPII) up 32%; Tween Brands (NYSE:TWB) up 27% on news that Dress Barn (Nasdaq:DBRN) will buy it for roughly $157 million in stock; Royale Energy (Nasdaq:ROYL) up 32.5%, an energy company involved in development and exploration of natural gas and oil in California, Texas, and the Rocky Mountain region.

Small-cap decliners were lead by medical oral diagnostics maker OraSure Technologies (Nasdaq:OSUR) down 23% on news that it needs to conduct more additional clinical trials to get approval for its hepatitis C virus test. The exact timing and costs for these additional tests have not been disclosed by OraSure and investors drove down share prices based on this uncertainty.

A number full of other small-cap stocks were big decliners today including data marketing services provider Acxiom Corporation (Nasdaq:ACXM) down 22%; Capital Bank Corporation (Nasdaq:CBKN) down 20%; and Cordorus Valley Bancorp (Nasdaq:CVLY) down 19%.

The Fed has spoken. Interest rates are not going higher anytime soon. And the Fed announced no change to its $1.75 bond purchase program. Bonds sold off, suggesting that traders hoped the Fed would do more to put a floor under prices.  

The Fed made it a point to say that "…inflation will remain subdued for some time." But the Fed also hasn't made any comments about target levels of inflation, or what levels of inflation would make it uncomfortable. With the amount of money being pumped into the system, this is a concern to me. Especially with commodity prices rising and the spread between 10-year Treasuries and 10-year inflation adjusted bonds (TIPS) increasing over the last month.  

*****Nothing will kill whatever recovery the Fed and others see coming faster than higher interest rates fueled by inflation fears.  

Most signs point to an imminent economic recovery. No one thinks it will be strong. But two straight months of increase for Durable Goods orders has most convinced that recovery, and a small level of inflation, is here.  

The Fed, in the other hand, is still fighting deflation. Unemployment is still on the rise, and modest improvement in the housing market doesn't mean we're anywhere close to working off the massive inventory of unsold homes. 

Given the very low expectations for economic recovery, maybe 2% growth in 2010, how does the Fed hike interest rates and start sopping up liquidity? I believe inflation will have to become a concern before the Fed can act.  

*****In case you missed last night's special Internet Video Conference, called Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth, I have a replay ready for you. You can access it HERE.   

*****Reuter's reported yesterday that Rep. Barney Frank and another Democrat wrote a letter to the CEOs of Freddie Mac and Fannie Mae asking them to relax their standards for condo loans.  

Apparently Freddie Mac and Fannie Mae recently said they wouldn't give loans to potential condo buyers if the condo development was less than 70% occupied. Makes sense, these days. But Frank and his friend are worried the tighter standards will impair the housing market and constrict future developments. 

This is appalling. The only thing we need more than more condos is more Hummers.  
If the government truly thinks we can simply reflate our way back to prosperity, they are sadly mistaken. This recession is new animal, one where both consumers and corporations took on way too much debt. That debt now sits in the form of unsold homes, many of which have been foreclosed upon. 

These homes (and condos) must get sold. But they must get sold to people with the means to pay the loans. Simply lowering lending standards doesn't do it and may well prolong the pain of this recession. Isn't the lowering of lending standards much of what got us into this mess to begin with? 

*****China's still throwing its cash around, this time offering $7.2 billion for oil exploration company Addax Petroleum (LSE:AXC.L). It would be state-run Sinopec (NYSE:SNP) actually doing the deal. But after the attempt to buy a $19 billion stake in Rio Tinto (NYSE:RTP) it should be obvious that China is intent on securing the commodities it needs. 

And in a world starved for cash, don't be surprised when China gets what it wants.  

*****Last year, travel group AAA reported that car travel over the 4th of July was down 10.5%. This year, it will fall another 1.9%.  Airline travel is expected to be up nearly 5%.  

 

Stocks were up today in reversing the downward trend from the week with leadership from financials and healthcare. Most notably blue chips JPMorgan Chase & Co. (NYSE:JP), Goldman Sachs (NYSE:GS), Pfizer (NYSE:PFE), and Merck (NYSE:MRK) were up. Rounding out the leaders in financial were Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC).

The Dow ended the day's trading session up 0.69% to close at 8,555 while the Nasdaq declined 0.02% and the S&P 500 saw gains, closing at 918, up 0.84%.

Small-cap bellwether Russell 2000 Index, representing the 2,000 largest small-cap stocks, closed up 0.36% to 509.

Leading small cap gainers reflected the broader push top leaders in financials including National Penn Bancshares (Nasdaq:NPBC) up 31.4%; American Capital (Nasdaq:ACAS) up 27.1%. Other gainers include Myriad Pharmaceuticals (Nasdaq:MYRXV) up 15.7%; Nelnet (NYSE:NNI) up 30.5%; and Talbots (NYSE:TLB) up 16%.

Small-cap decliners were lead by Liz Claiborne (NYSE:LIZ) down 25.9%, on forecasts of larger than expected losses. The company gave no indication for the larger losses other than the message from all apparel companies that consumers are cutting back on what they consider nonessential purchases. Liz Claiborne reported a loss of 37 cents per share in the first quarter, excluding one-time items. Analysts had forecast 33 cent loss per share for the second quarter. No guidance was provided by the company as to what the revised forecast might be. This played into investor concerns as sellers look to unload shares as reflected in higher than normal volume.

In other news concerning Liz Claiborne, the company announced yesterday that it intends to offer $75 million in convertible senior note due 2014. It is the company's intention to use the proceeds to pay down a portion of borrowings under an amended credit facility. 

*****10 banks have paid back $68 billion in TARP loans. Including some smaller banks that have already repaid loans, the total is now over $70 billion. Even though the repaid money was raised from secondary stock offerings, which dilute shareholder value, it's still something of a positive sign, I suppose.

Now, what's going to happen to the money? Will it sit in the TARP fund? Will it be used to back other loans to small businesses?

This is an inflation issue. The money supply has increased by around $1 trillion in the last year (much of the bailout "funds" have been loan and asset guarantees that haven't increased the money supply, yet). It's the Fed's job to contract the money supply to keep price inflation in check.

This is the problem with creating money - you have to be willing to "uncreate" it at some point. With unemployment as high as it is, inflation is not yet a concern. But that will change eventually, and the Fed will have to have the resolve to contract the money supply when the economy starts showing signs of life.

As we've seen in the past, an economy that gets hooked on liquidity is very hard to wean. I personally have my doubts as to whether this Fed will be able to avoid the Greenspan legacy of allowing asset bubbles to form. So we want to be ready to profit form whatever asset bubbles arise in the future.

This is one of the topics we'll be discussing in next Wednesday's Video Conference. It's titled Inflation Busters: Discover the Stocks to Grow and Protect Your Wealth and will air on Wednesday, June 24 at 6:00 P.M. It's free to attend, you can sign up HERE

*****Stocks are trying to put an end to the sell-off that started with Monday's big decline. The S&P 500 is within a few points of its 200-day moving average. It's also less than 20 points from its 50-day moving average.

One of the simplest trend following systems focuses on the crossover of the 50-day and 200-day MA. When the 50-day MA crosses above the 200-day MA, it signals a trend change from bear to bull. When the 50-day MA falls below the 200-day MA, it signals a change from bull to bear.

So, the current trading is very significant to technical traders. The S&P 500 is flirting with a major buy signal. It should be noted that the Nasdaq flashed the moving average crossover buy signal a few days ago. I would view the moving average crossover on the S&P to be confirmation of the Nasdaq signal.

*****Jason Cimpl, technical analyst at TradeMaster Daily Stock Alerts, isn't waiting. He's expecting a strong bounce and recommended 3 upside positions to his readers yesterday. One of them, the Direxion Technology Bull (NYSE:TYH), is a leveraged ETF that seeks triple the daily gains on the Russell 1000 Technology Index. That trade finished the day with a 3% gain.

Don't forget the new Daily Profit feature - Jason will give us another video chart analysis session tomorrow. In last Friday's edition he pretty much nailed this week's trading so I can't wait to see what he has to say about next week.
 
*****I'm itching to recommend a new stock to Daily Profit readers. We did pretty well with Graham Corp (AMEX:GHM) and Hovnanian (NYSE:HOV) earlier in this rally. 

I can't say I feel comfortable recommending Molecular Insight Pharmaceutical (Nasdaq:MIPI), but the story that came out yesterday is pretty darned interesting. The biotech announced that it can both detect and treat prostate cancer with its imaging agent, Trofex. And instead of the usual 5 tests including MRI and ultrasound, Molecular Insight can collect the necessary data for diagnosis within 2 hours of the Trofex injection.

The stock was up 42% to $6.24 yesterday. Of course, like most small biotechs, Molecular Insight is burning through cash like a teenager at the mall. But if this technology is viable, the stock will go a lot higher than $6.24.

Just thought you'd like to know…talk to you tomorrow.

 

 

Early morning weakness in the markets was made up during the afternoon trading hours. The Dow closed just slightly down at 8,497 for a loss of 0.09%. The Nasdaq was up 0.66% for a close of 1,808 and the S&P 500 lost 0.14% to close today at 910.

Small-cap stock investors were rewarded with a 0.65% gain on the Russell 2000 index, a composition of the 2,000 largest small-cap stocks, that closed at 507 today.

Pharma continued it's leadership position in small-caps with Molecular Insight Pharmaceuticals (Nasdaq:MIPI) up 41.3% today as money continues to move into healthcare stocks. Blue Chip pharma stocks followed their upward trajectory, though not nearly as much as small-caps put in, with Abbot Laboratories (NYSE:ABT) up 2.7%, Merck (NYSE:MRK) moved up 1.5%, and Johnson and Johnson (NYSE:JNJ) posted a 1.2% gain.

The other small-cap leader in pharma was Savient (Nasdaq:SVNT) up 35.5% after receiving the recommendation from a panel of arthritis experts who suggested the Food and Drug Administration approved Savient's new gout drug. By a vote of 14 to 1 the panel recommended that the firm's drug, KRYSTEXXA, be granted marketing approval by the FDA. The action date for the FDA's decision is currently set for August 1, 2009.

Other small-cap gainers for today include Alvarion (Nasdaq:ALVR) up 18.3% on news of its $100 million contract with Open Range Communications; Cayman Islands based United America Indemnity (Nasdaq:INDM), a provider of property and casualty insurance products, up 16.4%; and Connecticut based MTM Technologies (Nasdaq:MTM), up 42.8%.

Decliners were lead by Star Scientific (Nasdaq:STSI) which shed 73% off it's opening price to close today at $1.13. Star lost its patent suit against No. 2 cigarette maker RJ Reynolds Tobacco, a unit of Reynolds American (NYSE:RAI). It alleged that RJ Reynolds had infringed in its patents related to the way of growing and treating tobacco plants to prevent nitrosamines from forming. It's believed that in reducing nitrosamines that the cancer-causing agents in tobacco can be significantly reduced. The jury ruled not only that the patents were invalid, but that they should not have been issues. Star said it would seek a new trial or appeal to the U.S. Court of Appeals.

Other small-cap decliners were lead by financials including National Penn Bancshares (Nasdaq:NPBC) down 23.2%; First Financial Service Corp. (Nasdaq:FFKY) down 18.5%; and Provident Community Bancshares (Nasdaq:PCBS) down 16.4%. Larger capitalization bank shares were not immune to the sell-off in financials with Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC) all declining today.

*****On Monday, an influential bank analyst raised his price target for Bank of America (NYSE:BAC) to $19. That implies a 40% jump for BAC. Curiously, this particular analyst didn't cite any improvements to the business or strength in the bank's balance sheet. Rather, he based his analysis on improving investor sentiment.

I don't know about you, but I'm not running out and buying a stock - especially a bank stock - just because investors feel better. No, I'm going to need to see actual evidence that conditions for banks are improving before I wade into those murky waters.

So far, the improvements we've seen in bank fundamentals have been based on accounting changes and government stimulus for the housing market. These measures don't fix the problem; they simply make the symptoms look better.

*****To underscore this point, S&P just cut its ratings on 22 banks because of the potential for further weakening in the sector. The S&P analyst had this to say:

"We believe the banking industry is undergoing a structural transformation that may include radical changes with permanent repercussions…Financial institutions are now shedding balance sheet risk and altering funding profiles and strategies for the marketplace's new reality. Such a transition period justifies lower ratings as industry players implement changes."

Bank of America was not among the banks whose outlook was cut by S&P. And I don't care. So long as the sector is weak and the economy is struggling I'm not going anywhere near banks stocks, improved investor sentiment or not.

*****I know Cold War politics are long over, and that Russia and the U.S. are no longer vying for supremacy, but I still can't help thinking "In your face, Russia" when I read that dollar denominated bonds sold by Russia, China and Brazil performed far better than bonds denominated in those countries own currency.

Russian and Brazilian bonds lost money. China's yuan denominated bonds posted small gains. In every case, dollar denominated bonds made money.

It should be obvious that the BRIC countries (Brazil, Russia, India and China) demand that the world's reserve currency should be manipulated to weaken the influence of the dollar is pure politickin'. Or in the words of a currency strategist quoted by Bloomberg, "It's not up to politicians to determine which currency will be the world reserve currency…In the end the market decides it."

In this case, it should be apparent that the market has spoken.

*****So I won't buy their debt, but I will buy Chinese stocks. Yesterday,   SmallCapInvestor PRO added another Chinese stock to the portfolio. China's one of the few countries in the world that's posting any growth. And investors should absolutely own some Chinese stocks right now. If you want to find out what we're holding in SmallCapInvestor PRO just click HERE.

U.S. stocks are expected to open flat as investors wade through a flood of earnings reports and watch for updates out of Washington on the stimulus package. In overseas trading, Europe markets were steady and Asia was mixed after the Bank of Japan promised to pump $11 billion into banks and Australia’s central bank slashed interest rates. The Dow is expected to open steady, while the Russell 2000 (NYSE:IWM) is seen slightly higher near the key swingline of 450.00.

Among the bevy of quarterly results already in the mix ahead of the opening, Merck & Co. (NYSE:MRK) beat the forecast and was higher in pre-market trading; AFLAC Inc. (NYSE:AFL) said they wouldn’t need to raise cash and also trended higher. On the soft side of things, Dow Chemical Co. (NYSE:DOW) missed the forecast and fell some 5% in pre-market action; SanDisk Corp. (Nasdaq:SNDK) missed the sales projection and will issue stock to raise capital, which sparked a slide in the maker of memory cards for digital cameras.

Carmakers will release sales figures today, which could move stocks not just for automakers, but also for the general market. The market is already anticipating some of the worst car sales numbers on record, so the bar is set pretty low as it is. Pending home sales data also comes out at 10:00 a.m. ET.

Crude oil prices were slightly higher in choppy trade ahead of the open; energy . . .

Small-cap stocks are expected to push lower on the opening, with support from a raft of rate cuts around the world overnight countered by concerns over profit outlooks and worries over monthly retailer sales tallies. Stock index futures were down about 1.5% in pre-market trading, which suggests the Russell 2000 (NYSE:IWM) will open near 447.50.

European stocks were higher after European Central Bank officials slashed 75 basis points off their benchmark lending rate, which was more aggressive than expected. However, European shares slipped into the negative after El du Pont de Nemours and Co. (NYSE:DD) revised their profit outlook downward this morning. The DuPont news added to a dreary tally of fresh profit/outlook concerns from several companies, including Merck & Co. Inc. (NYSE:MRK), Cirrus Logic Inc. (Nasdaq:CRUS), Intersil Corp. (Nasdaq:ISIL) and Jo-Ann Stores Inc. (NYSE:JAS).

Back to the rate cut news, the Bank of England, Sweden’s Riksbank, New Zealand authorities and even Indonesia cut lending rates overnight as central bank officials around the world strive to battle the economic downturn.

The weekly claims report this morning came in at 509,000, which is historically a big number, but which was actually below the forecast of 540,000. The four-week moving average on claims rose to 524,500 which was above 518,250 from . . .

Small-cap stocks remained solidly lower into midday trading, pressured by concerns that the latest batch of quarterly earnings were painting a difficult canvass moving toward 2009. Even the bullish earnings surprises seem tainted by worries that a prolonged recession will pull down corporate profitability for some time. At 12:47 p.m. ET, the Russell 2000 (NYSE:IWM) was down 12.71, or 2.39%, at 518.10.

At the lows today, the Russell was testing minor trendline support drawn off the recent lows. That line also forms the bottom edge of a pennant pattern, and a breakdown through today’s lows would suggest further downside probing toward that major low. Below today’s low at 514.42, there is very little chart support until we get close to the “figure” point at 500, which stands as another important test for any bulls who want to find value at the depressed levels.

As for the latest batch of earnings today, there were red flags from nearly every sector, with pharmaceutical firm Merck & Co. (NYSE:MRK) projecting a very cautious outlook. ConocoPhillips (NYSE:COP) was down about 6%, warning that exploration and output would slide and airplane maker The Boeing Co. (NYSE:BA) was down about 6.5% as a strike hurt profits.

The biggest declining sectors this morning came from coal, motorcycle manufacturers, metal and mining stocks, oil and gas drillers, aluminum, gold stocks and casinos. For the second day in a row, commodities were getting nailed as the prospect of global slowing takes a toll on physical markets and the companies that deal in those products. The Commodity Research Bureau Index of 19 physical markets . . .

Small-cap stocks slipped into the red into midday action Thursday, as pressure from the relentless slide in financial stocks was countered by gains in commodity and consumer stocks. At 12:44 p.m. ET, the Russell 2000 (NYSE:IWM) was down 1.07, or 0.16%, at 675.31.

This morning’s batch of fresh economic data came in mixed from a headline perspective, but the overall tone was supportive, which helped counter yet another slide in bank and financial shares. The Philly Fed survey came in at 3.8%, which was quite a bit better than the forecast for a reading of minus 10, and up from minus 12.7 last month. In fact, the survey came in at 10-month highs and played a key role in lifting stocks off the morning lows.

And even though the weekly claims headline figure came in above the consensus at 455,000 (the market was looking for 440,000), the continuing claims number took an unexpected dip, which took the sting out of the headline figure. The leading indicators number was softer than forecast, but those figures are a little dated and took a back seat to claims and Philly Fed.

Still, the market has been unable to escape the long, dreary shadow cast by slumping financial stocks. The Financial Select Sector SPDR was down more than 4% at midday, while the PHLX Banking Index was off some 4.5%. Morgan Stanley (NYSE:MS) remains the latest target of the bears, and was off some 21%, while Goldman Sachs (NYSE:GS) was down some 12%. The market found some solace in what appeared to be global central bank coordination to help out the credit crisis, but . . .

Small-cap stocks opened higher following Wednesday’s rout, which ended with a 4.8% drop in the index to the lowest daily close since July 15. At 10:06 a.m. ET, the Russell 2000 (NYSE:IWM) was up 1.48, or 2.18%.

News that the U.S. Federal Reserve and other major central banks around the world pumped billions of dollars into the global financial system was supportive, but uncertainty about the shaky U.S. financial system remained. Gold continued to strengthen after Wednesday’s record spike, while Treasury prices eased.

Before the opening the U.S. Labor Department said the initial jobless claims rose to a seasonally adjusted 455,000, up 10,000 from the previous week. Analysts were looking for a slight drop in claims; the government attributed the rise to the impact of Hurricane Gustav.

Shortly after the opening bell, SurModics Inc. (Nasdaq:SRDX) was down nearly 25% to $29.49 following news after the close Wednesday that Merck & Co., Inc. (NYSE:MRK) said it is discontinuing a license and research collaboration agreement the companies signed in June 2007.

A recent study by China's Ministry of Health and the Ministry of Science and Technology said a combination of smoking, poor diet and rampant pollution has caused the nation's cancer rates to swell 80% in the last 30 years, making the disease the leading cause of death in China today, claiming 1.5 million lives every year.

And according to another report published earlier this month, the nation's growing health woes and aging population have caused health-care expenditures to explode. Total health-care spending in China is expected to rise at a compound annual growth rate of 11% between now and 2012.

It should come as no surprise, given the size of the market and the ongoing debate over Chinese drug safety, that regulators at China's State Food and Drug Administration (SFDA) have intensified their oversight and testing measures for drugs. The regulators plan to work closely with their counterparts in the United States, Europe and Australia to coordinate inspections of factories in China that produce pharmaceutical raw materials.

One Chinese company capitalizing on the spike in health-care spending while avoiding drug safety problems is 3SBio Inc. (Nasdaq:SSRX), a Shenyang-based biopharmaceutical products company that specializes in high-quality, low-cost drugs. In stark contrast to the recent disappointing setbacks experienced by a number of other domestic players and multinational pharmaceutical giants such as Merck (NYSE:MRK) and Schering-Plough (NYSE:SGP), 3SBio is thriving.

The company dominates the domestic market (with close to 40% market share) for the drug Epoetin, commonly referred to as Epo, which is used to treat anemia associated with chemotherapy treatments and kidney dialysis by increasing red blood cell production. 3SBio's protein-based therapeutic recombinant human thrombopoietin (Tpo) products, which are used to treat iron deficiency (another side . . .

Small-cap stocks edged higher Monday, bucking a downdraft in other large-cap index products as more good news in the banking arena surfaced. In addition, movement into smaller energy and commodity stocks provided a lift to the Russell 2000 (NYSE:IWM). The small-cap benchmark gained 4.55, or 0.66%, to 697.63.

Large-cap indices also were pulled down by a slump in pharmaceuticals, with Merck and Co. (NYSE:MRK) and Schering-Plough (NYSE:SGP) taking a dive ahead of earnings on news that the cholesterol drug Vitorin didn’t deliver the goods in a heart study. The slide in pharma shares came despite a jump in Genentech Inc. (NYSE:DNA) shares on news of a buyout offer from Swiss firm Roche Holdings.

In today’s action, large-cap stocks also appeared to be more troubled by a bounce in crude oil prices than did small-cap shares. Crude oil prices rose $2.16 dollars a barrel, or 1.6% to $131 as the market braced for the first storm event of the year. Tropical Storm Dolly could reach hurricane status Tuesday as it moves into the Gulf of Mexico, but for now the storm track seems unlikely to create a major supply disruption out of Gulf production.

Energy markets also likely were underpinned by a soft tone in the U.S. dollar to start the week. The greenback slipped about 0.5% against the euro and about 0.2% versus the yen, which provided a lift to some commodities markets, including gold and copper. The iPath GSCI Total Return commodities index was up about 1.5% on the day.

Once again, the bullish side of things was dominated by a surprise earnings report in the banking sector. Last week, Wells Fargo & Co. (NYSE:WFC), JP Morgan (NYSE:JPM) and Citigroup (NYSE:C) all beat the Street’s forecast and today saw Bank of America (NYSE:BAC) top expectations. The recent spate of good news on the banking front has helped to shore up negative sentiment toward . . .

Small-cap stocks are treading higher in afternoon trading, boosted by healthy earnings on the banking front and mergers and acquisitions news. At 2:07 p.m. ET, the Russell 2000 (NYSE:IWM) was up 2.96, or 0.43%, at 696.04. As oil prices rose and two pharmaceutical blue chips delayed reporting their quarterly results, the broader market was down in afternoon trading. The Dow lost 36.88, or 0.32%, to 11,459.69.

The leading indicators report, which came out at 10:00 a.m. ET, was in line with the forecast for a dip of 0.1% and had almost no immediate impact on the market. Overall, this is a very light week for economic data, but it will be a huge week for earnings results.

Pharmaceutical giants Merck & Co. (NYSE:MRK) and Schering-Plough Corp. (NYSE:SGP) delayed releasing their second-quarter earnings until after the closing to let researchers report results from a study of a cholesterol drug marketed by the two companies in a joint venture.

In what has become an ongoing trend, a major U.S. bank has posted better-than-expected earnings. This time around, the good news was from Bank of America (NYSE:BAC), as the nation’s largest retail bank topped the Street earnings forecast and jumped 7% in the afternoon session. The earnings surprise follows on the heels of better-than-expected results last week from Wells Fargo & Co. (NYSE:WFC), JP Morgan (NYSE:JPM) and Citigroup (NYSE:C).

Within the financial spectrum, government-sponsored mortgage lenders Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) were solidly higher this morning in the wake of weekend comments from Treasury Secretary Henry Paulson, who said that he expects Congress to quickly pass his bail-out program for GSEs. Paulson . . .

ChemGenex Pharmaceuticals Ltd. (Nasdaq:CXSP) wants to share an ancient Chinese secret with the world, one that could provide a knockout punch to a form of leukemia resisting other treatment.

Recent announcements from the Australian company with a California research base triggered interest in the American Depository Receipts of ChemGenex — and given hope to those diagnosed with one of the four main types of leukemia.

For U.S. investors looking at ChemGenex’s Nasdaq-traded shares, or at the shares on the Australian Stock Exchange (ASX:CXS), it could be difficult to calculate the biotech company’s financial health. The SEC filings lack quarterly updates, and few analysts follow ChemGenex, though two in Australia rate it a “buy.”

Its homeland shares are trading around $1 Australian. On the Nasdaq, ChemGenex has risen 80% since January. Shares hit a 52-week low of $8.58 last Aug. 28, and a high of $26.99 on Tuesday. ChemGenex closed at $23.50 on Friday.

ChemGenex Pharmaceuticals was formed in 2004 from the merger of AGT BioSciences of Melbourne, with ChemGenex Therapeutics of Menlo Park, Calif. It united AGT’s focus on genetic discoveries in treating cancer, diabetes, obesity and depression, with ChemGenex Therapeutics’ application of genomic technologies to cancer treatment. A late 2007 spinoff of its metabolic disease business focuses on cancer.

With headquarters in Geelong, Victoria, ChemGenex is guiding omacetaxine mepesuccinate, derived from the Chinese yew tree, through final patient trials. The substance received U.S. fast-track approval for clinical trials to treat chronic . . .

Small-cap stocks are expected to open solidly higher, buoyed by short-covering ahead of this afternoon’s FOMC policy announcement amid ideas the market is oversold on short-term indicators. The Russell 2000 (NYSE:IWM) was up 0.6% overnight, which suggests an opening near 711.50.

Durable goods orders for May came in unchanged, which was slightly softer than the median forecast for a rise of 0.1%. Equity index futures were able to hold sway with overnight gains despite the soft number. Durables have a history of being volatile, so it typically is going to take a bigger surprise than 0.1% to spark a meaningful move in the market.

Earlier this morning, the MBA mortgage application survey came in at minus 9.3%, which was the lowest level since July 2001. In addition, the report showed that the purchasing index fell 7.4% to the lowest point since February 2003. Also, the refinance index tumbled 12.1% to the lowest level since July 2001. With the housing market still soft and rates firming, mortgage activity has slowed to a crawl. Data on new home sales is slated for release later this morning at 10:00 a.m. ET.

The crude oil market was down ahead of the stock market open, waiting for today’s weekly inventory data. The market is anticipating a drawdown on crude oil stocks. The U.S. dollar was up marginally overnight, gaining about 0.2% against both the euro and the yen. The greenback will likely be influenced by this afternoon’s FOMC statement toward the inflation picture.

Equities markets overseas were primarily higher overnight, which should lend a little support to U.S. stocks this morning. Europe shares were lifted by comments from ECB President Jean-Claude Trichet that he did not envision a series of rate hikes. In Asia, China stocks were up 4.1%, while Hong Kong rose 0.8%, Taiwan 1.5%, . . .

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 . . .

Small-cap stocks opened lower after the opening bell, experienced a slight bump after the Consumer Confidence report was released at 10 a.m., but are continuing to slide in midday Tuesday trading. At 12:37 p.m. ET, the Russell 2000 (NYSE:IWM) was down 8.19, or 1.13%, to 717.18.

The Conference Board reported that April’s Consumer Confidence Index slumped to 62.3, the lowest level in five years, from a revised 65.9 in March. Economists expected the index, which has declined fourth months in a row, to decline to 61.

During a morning press conference, President Bush said Congress should allow more domestic energy production. Higher production would lower record-high gas prices, he said. Bush said gas prices have risen $1.40 per gallon since the Democrats won a majority in Congress, and pointed to stalled efforts to open drilling in Alaska’s Arctic National Wildlife Refuge, which would “likely mean lower gas prices.” The president will consider proposals by Sen. John McCain and Sen. Hillary Clinton to suspend the federal gas tax, but did not provide backing for the proposal. The President also noted that the economic stimulus package is in on the way.

Large-cap movers this morning included drug company Merck & Co. (NYSE:MRK), which was down 8% 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 3%. In addition, Visa (NYSE:V) posted decent earnings ahead of the opening, and the financial firm is up 1% in midday trading after dipping in earlier action.

Within the small-cap spectrum, LCA Vision Inc. (Nasdaq:LCAV) is down 17%, gapping lower on weak earnings. Intevac Inc. (Nasdaq:IVAC) was down 23% as well, also on earnings news, and TheStreet.com Inc. (Nasdaq:TSCM) was off 13% on soft earnings. Digi International Inc. (Nasdaq:DGII) shares are slumping more than 19% after the Minnetonka, Minn.-based company reported early Tuesday that its second-quarter revenue totaled $43.1 million, which fell short of Wall Street’s expectation of $51.1 million.

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 . . .

Small-cap stocks are expected to open slightly lower this morning, in line with a very mild overnight dip in equities. The Russell 2000 (NYSE:IWM) was down about 0.1% in after-hours trading (trimming earlier declines), which would equate to near 724 at the start of today's trading.

Large-cap futures were pulled down overnight by soft earnings from Visa (NYSE:V), which was down some 4%. In addition, Merck & Co. (NYSE:MRK) was off more than 7% on news that the FDA rejected a new cholesterol drug from the pharmaceutical firm.

Overseas stocks were mixed overnight, with Japan flat, Hong Kong up 0.9%, and European shares down some 0.3% after Deutsche Bank generated its first quarterly loss in five years and Michelin tumbled about 8% on weak earnings.

Some of the buyer reluctance from late yesterday and overnight may be tied to jitters in front of today’s 10:00 a.m. ET Consumer Confidence report, especially . . .

Small caps are continuing to bleed red in Monday’s trading. At 1:46 p.m., the Russell 2000 (NYSE:IWM) is down 0.82%, or 5.9, at 715.17. After Friday’s big rally, the index slipped in early trading today, broached the 718 mark briefly, and then continued to slide.

The market is digesting results from drug makers Eli Lilly (NYSE:LLY) and Merck & Co. (NYSE:MRK), and from the second largest American bank, Bank of America (NYSE:BAC). Bank of America shares were lower after the regular opening, down about 2.5% as investors appear less willing to extend an olive branch to sluggish results, especially compared to the reaction last week that was seen on Citigroup’s (NYSE:C) earnings.

As for the drug makers, the news was mixed, with Eli Lilly tumbling about 4.5% on sloppy results, while Merck slipped about 0.1% despite beating the estimate.

Among small caps, Packeteer Inc. (Nasdaq:PKTR) is rising more than 12% on news that the company was set for acquisition, and North American Galvanizing & Co. (Nasdaq:NGA) was up about 7% into the opening as the company topped earnings forecasts.

On the downside, Aladdin Knowledge Systems Inc. (Nasdaq:ALDN) tumbled about 27% after missing the earnings forecast. MedCath Corp. (Nasdaq:MDTH) is down about 17% after the Charlotte, N.C.-based health-care provider estimated its second-quarter and fiscal 2008 earnings far below Wall Street expectations.

Small-cap stocks began Monday in the red: at 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 2.67, or 0.37% at 718.40. The index’s early low was at 716.72, slipping through the first line of defense from Friday’s big rally at 718, and now faces short-term chart support at 714, then down at 709.

The focal point early this week will likely be on earnings news and the credit crunch. Overseas, the Bank of England announced the opening of a credit window that would allow banks to swap out risky mortgage debt for U.K. government bonds, a similar function to what the Federal Reserve did several weeks ago to help bail out limping financial firms. The immediate response from European equities was lukewarm, however, so it may take more time to play out. The uncertain response to the Bank of England’s move means that the credit issue will likely remain on trader radar screens early this week.

The U.S. dollar was lower overnight, and crude oil shot to yet another record high price, which clearly puts a little bit of a damper on bullish psychology from last week’s big surge in small caps. The Lundberg survey of some 7,000 gas stations reported a new high pump price of $3.47 per gallon, up $0.04 from two weeks ago. Combine record oil prices with soaring food prices, sluggish home values and . . .

Small-cap shares are expected to open lower following modest losses in overnight action. The Russell 2000 (NYSE:IWM) was down about 0.3% heading into the regular opening, which would translate into a cash opening in the 718.90 range for the index. Initial chart support for the Russell is near 718. Below there, mild support for short-term day traders is at 714, then down near the gap fill point from Friday’s opening near 709. If the market can mount a turnaround, look for resistance near Friday’s high along the 724 zone, then at 731.

Given a dearth of economic news this week, the market appears set to juggle various earnings releases while keeping an eye on credit issues for trading direction early this week. The Bank of England announced a plan to swap U.K. government bonds for mortgage debt, in a move to take some fear out of the credit/Libor issue, but the initial take from European equity traders was lukewarm.

European stock indices were down about 1% for most of the major trading markets, but markets in Asia saw solid gains overnight. Japan’s Nikkei was up . . .

The Russell 2000 (NYSE: IWM) futures are lower and the small-cap index will open with a drop on news of a disappointing profit at Exxon Mobil.

The bears are dominant in pre-market trading following news that Exxon Mobil Corp. (NYSE: XOM) reported a bigger-than-expected drop in third-quarter profit and missed Wall Street’s expectations.

Irving, Texas-based Exxon Mobil, the world’s largest publicly traded oil company, booked a net income of $1.70 per share, down from $1.77 per share a year earlier and below analysts’ projected earnings of $1.75 per share.

In economic news, the U.S. Commerce Department reported that personal income increased at a seasonally adjusted rate of 0.4% in September, compared with a rise of 0.3% in August. That’s in line with economists’ expectations.

However, personal consumption in September increased 0.3%, below the projected rise of 0.4%. In August, personal consumption added a downwardly revised 0.5%.

Meanwhile, initial jobless claims for the week ended Oct. 27 fell 6,000 to 327,000 on a seasonally-adjusted basis. That’s a larger drop than the one expected by economists. But on the other hand, the four-week average—which is a more stable measure—increased 1,750 last week to 327,000.

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:

• Dynavax Technologies Corp. (DVAX), up 22% on news of a partnership with pharmaceutical giant Merck & Co. (MRK).
• Spreadtrum Communications Inc. (SPRD), up 15% on news of higher third-quarter earnings.
• i2 Technologies Inc. (ITWO), up 14% on news of a higher third-quarter profit.

Biggest percentage losers:

• Smith Micro Software Inc. (SMSI), down 22% on news of a decline in third-quarter profit.
• Vanda Pharmaceuticals Inc. (VNDA), down 17% on news it plans to offer $100 million of convertible senior notes due 2014.
• China Precision Steel Inc. (CPSL) down 11% on news it has agreed to issue and sell an aggregate of 7,100,000 shares of its common stock.

Shares of Ariad Pharmaceuticals Inc. (Nasdaq: ARIA) are gaining ground ahead of the opening bell after the developer of medicines to treat cancers reported that it has agreed to a special protocol assessment with the U.S. Food and Drug Administration for its oral deforolimus in patients with metastatic sarcomas, aggressive cancers of connective tissue in the body.

Ariad, which has partnered with Merck (NYSE: MRK) in the development of deforolimus as a treatment for cancer, said it expects to begin patient enrolment for the trial later this month.

Deforolimus is a small-molecule inhibitor of the protein mTOR, a “master switch” in cancer cells. Ariad said blocking mTOR creates a starvation-like effect in cancer cells.

Shares of Ariad jumped 6.98%, or $0.33, to $5.06 ahead of the opening bell.

The Russell 2000 (NYSE: IWM) was the only major U.S. index not to partake in the modest rally that followed news of major corporate deals. The small-cap index fell 0.82 points, or 0.10%, to 835.62. The Dow Jones Industrial Average (INDU) added 92.34 points, or 0.67%, to 13,943.42.

With a void of economic news, the bullish sentiment on Wall Street was primarily due to the latest mergers wave.

The Russell 2000 began the day with a healthy rise and briefly touched a level of 842 around 1 p.m. ET before slipping into negative territory shortly before the close.

Houston-based offshore driller GlobalSantaFe Corp. (NYSE: GSF) and city rival Transocean Inc. (NYSE: RIG) agreed to a merger of equals to create a $38 billion combined company. The deal is scheduled to close by the end of 2007.

The Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU) are higher on news of earnings and mergers.

At 10:52 a.m. ET the Russell 2000 had added 2.28 points, or 0.27%, to 838.72. The Dow Jones Industrial Average was up 71.37 points, or 0.52%, to 13,922.45.

Pharmaceutical heavyweight Merck & Co., Inc. (NYSE: MRK) reported unexpectedly positive second-quarter results. The Whitehouse Station, N.J.-based company saw its quarterly profit climb 12% due to higher demand for cholesterol-lowering drug Vytorin and cervical-cancer vaccine Gardasil.

The Russell 2000 (NYSE: IWM) futures are pointing up and the small-cap index is likely to open in positive territory following news of earnings and corporate deals.

Houston-based offshore driller GlobalSantaFe Corp. (NYSE: GSF) and city rival Transocean Inc. (NYSE: RIG) have agreed to a merger, according to an announcement this morning.

The Russell 2000 (NYSE: IWN) and the Dow Jones Industrial Average (DJI) are on track for a second day of record closes. At 3:12 p.m. ET the Russell 2000 was up 0.47 points, or 0.05%, to 855.65. The Dow had added 49.67 points, or 0.36%, to 13,911.40.

Shares of ARIAD Pharmaceuticals Inc. (Nasdaq: ARIA) are down despite news the Cambridge, Mass.-based company will team up with heavyweight Merck & Co., Inc. (NYSE: MRK) to develop an experimental cancer treatment. The new medication will attempt to block the growth of cancer cells by starving them, according to an Associated Press report after Thursday’s close.

Cambridge, Mass.-based ARIAD Pharmaceuticals Inc. (Nasdaq: ARIA) has entered into an agreement with industry giant Merck & Co. (NYSE: MRK) to develop and commercialize a new cancer treatment, the company said this morning. Merck will pay the drug developer $75 million upfront, up to $452 million in milestone payments and up to $200 million in sales bonuses. The stock is up $0.20, or 3%, to $6.25.

Shares of Multi-Fineline Electronix, Inc. (Nasdaq: MFLX) are down following news after Wednesday’s close that the electronic components maker saw its fiscal third quarter net sales decline unexpectedly. The stock is down $0.38, or 2%, to $16.77.

Known on Wall Street as Big Pharma, multibillion-dollar companies such as Pfizer Inc. (NYSE: PFE), Merck & Co., Inc. (NYSE: MRK) and Bristol-Myers Squibb Company (NYSE: BMY) dominate the prescription drug market. But a compelling argument can be made for investing in the biotechnology sector, since biotechs have consistently outperformed the pill companies for the past few years.

While Amgen Inc. (Nasdaq: AMGN) and Genentech Inc. (NYSE: DNA), biotech's biggest names, have fallen on hard times (Amgen's stock has plunged 26% from its January high while Genentech's shares are off 14%), some smaller biotech companies hold promise., some smaller biotech companies hold promise.

One such micro-cap is Antares Pharma, Inc. (AMEX: AIS), a $90 million specialized pharmaceutical company with patented drug delivery platforms including Advanced Transdermal Delivery gels (medications—hormones or other active ingredients—that are applied to the surface of the skin in gel form), reusable needle-free injection systems, disposable mini-needle injection systems and fast-melt oral tablets. In the face of direct competitive pressures from companies developing transdermal gels such as NexMed, Inc. (Nasdaq: NEXM), Bentley Pharmaceuticals, Inc. (NYSE: BNT) and Novavax, Inc. (Nasdaq: NVAX), and players like Bioject Medical Technologies Inc. (Nasdaq: BJCT), which produces needle-free injection systems, Antares has flourished.

U.S. stocks have recovered some of their early losses but are still trading in negative territory.  In small cap action, Bronco Drilling Company, Inc. (Nasdaq: BRNC) missed earnings expectations, while Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) widened its quarterly net loss.

At 2:22 p.m. ET the Russell 2000 was down 2.42 points, or 0.29 percent, to 829.45.  The Dow Jones Industrial Average has lost 10.89 points, or 0.08 percent, to 13,302.08.

April 19 (SmallCapInvestor.com) – The Dow closed at a record high for the second day in a row despite fears of overheating in China, while the Russell posted another loss.  Among small caps, a downwardly revised earnings forecast hurt shares of KVH Industries, Inc. (Nasdaq: KVHI) while shares of Maxco Inc. (Nasdaq: MAXC) will be delisted.

The Russell 2000 lost for the third consecutive day, dropping 5.06 points, or 0.61 percent, to 819.32, after setting a record high of 831.44 on Monday.  The Dow Jones Industrial Average improved on Thursday’s record close, adding 4.79 points, or 0.04 percent, to 12,808.63.

April 13 (SmallCapInvestor.com) – Stocks closed the day in positive territory as an upbeat profit forecast from pharmaceutical giant Merck overshadowed an earlier report of a drop in U.S. consumer confidence.  In small cap action, shares of Medis Technologies Ltd. (Nasdaq: MDTL) rose on news the company made sales to Microsoft, while news of a buyout lifted Cutter & Buck Inc. (Nasdaq: CBUK).

The Russell 2000 rose for the second straight day, adding 4.33 points, or 0.53 percent, to 819.38.  The Dow Jones Industrial Average rose 59.17 points, or 0.47 percent, to 12,612.13.