Tag - Plxt

Stocks extended gains Wednesday after investors were encouraged by factory and home sales data that further solidified beliefs that the economy is stabilizing.

At 3:00 pm ET, the Russell 2000 (NYSE:IWM) is up 0.59% at 425.26, while the Dow is up 1.6% at 7,730.38 and the S&P 500 is up 1.18% at 807.26.

Small caps moving higher today include PLX Technology (Nasdaq:PLXT), up 18% after the small cap formed an alliance with Fusion-io on new products.

*****Even before they’ve had the chance to present a third (or is it fourth?) turnaround plan, President Obama has said bankruptcy is the best way for GM and Chrysler to deal with their problems.

GM would be able to restructure with bankruptcy protection, but apparently it’s a lost cause for Chrysler if the proposed Fiat merger fails. GM’s got around $47 billion in debt it has to deal with.

It’s likely that Obama’s mention of bankruptcy is intended to bring bond holders and union officials to the table for some serious negotiating. Bankruptcy proceedings could cost 4 GDP percentage points and 1 million jobs.

*****Hovnanian Enterprises (NYSE:HOV) is back in the green after the National Association of Realtors said pending home sales rebounded. Some are even calling bottom for the housing market. However, given the massive supply that still exists, I think it’s a little early to ring the bell. Let’s say the housing market is in a bottoming process. That way, when prices stay weak longer than expected, we can say it’s just part of the process. Hovnanian is up 7% in the early going.

*****As you know, it’s Newsletter Advisors Wednesday. Today’s interview follows …

Timothy Lutts is Cabot’s chief investment strategist and editor of Cabot Stock of the Month Report. I sat down with him recently to ask him about the . . .

Small-cap stocks pushed higher, recouping some of Monday’s big decline amid lower crude prices and positive economic data. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was up 9.95, or 1.43%, at 706.06.

The consumer confidence report came out at 51.9, which was above the forecast of 50 and which sparked a quick jump in the U.S. dollar while extending the morning rally in equities.

Earlier this morning, the Case-Shiller Home Price Index slipped at a record pace to minus 15.8% in May, which wasn’t a surprise to the market, but is sobering news to home owners who have seen four years of home equity wiped out during the recent downturn in housing.

Crude oil futures were pushing lower this morning, which provided some support to the stock market. The market for black gold was off nearly $2 dollars a barrel into the U.S. stock market open, backing down below $124 amid concerns about the demand picture. OPEC president Chakib Khelil said that current prices for crude were “abnormal” and that prices could fall to $70 to $80 dollars in the long-term picture if the U.S. dollar strengthens and political tensions ease. The greenback was up this morning about 0.6% against both the euro and the yen.

Traders will keep a close watch on the financial arena again today following news overnight that Merrill Lynch (NYSE:MER) announced plans to write-down $5.7 billion in debt and raise $8.5 billion in capital through new stock sales. Shortly after the open, MER shares were down 1%. Also within the financial spectrum, Citigroup (NYSE:C) was the target of negative analyst comments overnight and slumped 2.5% on the open.

Coming into the opening today, stock markets around the world were on tilt, sinking to two-week lows as the MER news sparked renewed fears about the credit crunch. Although European shares bounced off the lows, they were hit hard at times overnight, and Asian markets had a decidedly bearish result, with Japan down 1.4%, Hong Kong down 1.8%, China down 1.8%, Taiwan down 3.0%, Australia . . .

Shares of PLX Technology, Inc. (Nasdaq:PLXT) are being trounced in pre-market trading after the interconnect semiconductors supplier said after Monday’s close that it swung to a net loss in the second quarter after turning a profit in the first quarter. Quarter-over-quarter, the firm’s net loss narrowed slightly from 2007.

Adding insult to injury, the firm also guided third-quarter revenues below the consensus on Wall Street.

The Russell 2000 (NYSE: IWM) futures are falling and the small-cap index will open with a drop despite an interest rate cut.

The U.S. Federal Reserve has decided to lower the target for the federal funds rate to 3.50% from 4.25% to calm jittery financial markets and keep the economy from falling into a recession.

“The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth,” the Fed said in a statement. “While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households.”

The fact that the U.S. central bank has decided to lower the federal funds rate between its regularly scheduled meetings is a sign of the serious economic and financial problems we’re seeing.

The Fed has not moved to lower its target rate between meetings since September 2001, in the wake of the terrorist attacks. Its next regularly scheduled meeting is on Jan. 29 and 30.

PLX Technology, Inc. (Nasdaq: PLXT), Accredited Home Lenders Holding Co. (Nasdaq: LEND) and Marten Transport, Ltd (Nasdaq: MRTN) are the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage losers:

After hitting a 52-week-high, Ultra Clean Holdings Inc. (Nasdaq: UCTT) saw its stock plummet by $2.85, or 14.5%, to $16.75 on heavy volume in after-hours trading today despite posting record first quarter revenue. The Menlo Park, Calif.-based manufacturer of customized equipment used to make semiconductors posted net income of $5.2 million, or $0.24 per share, on revenue of $110.8 million. Three analysts polled by Thomson First Call had been expecting earnings per share of $0.27 on revenue of $108 million. Earlier in the day, Ultra Clean’s stock had reached a 52-week-high of $19.99.

Shares of iRobot Corp. (Nasdaq: IRBT) climbed $1.38, or 9.2%, to $16.38 in after-hours today after the Burlington, Mass.-based robot provider announced it has inked a deal with The Boeing Company (NYSE: BA). The two firms plan to develop and deliver a new, next-generation small unmanned ground vehicle to military, civil and commercial users.

Mindspeed Technologies Inc. (Nasdaq: MSPD) rose $0.22, or by 10.8%, to $2.25 in after-hours trading after meeting analysts’ expectations on second quarter earnings. For its fiscal second quarter ended March 31, Mindspeed posted a net loss of $4.4 million, or $0.04 per share, on revenue of $30.8 million. Eight analysts were expecting a loss of $0.04 per share on revenue of $31.2 million. The Newport Beach, Calif., supplier of semiconductor networking solutions for communications said it expects to return to non-GAAP operating profitability in its third fiscal quarter.