Tag - Ruth

Stocks are looking up during Friday trading after the Federal Reserve released details of how it conducted bank “stress tests.”

At 3:00 pm ET, the Russell 2000 (NYSE:IWM) is up nearly 3%, while the Dow is up 1.96% and the S&P 500 is up 2.04%.

Small caps making large moves today include Ruth’s Hospitality Group (Nasdaq:RUTH), up over 31% on very heavy volume ahead of its earnings release on May 5.

*****Today is the day Treasury Secretary Geithner lets us in on the criteria he’s using for the bank “stress test” to determine the health of these financial firms going forward. Stocks have already responded well to his comments that most banks are well-capitalized.

But even if they are well-capitalized now, that status could change going forward. Consider these stats from Bloomberg:

Pittsburgh-based PNC Financial Services Group Inc. saw nonperforming assets -- those no longer accruing interest -- jump more than fivefold in the first quarter from a year earlier. They more than quadrupled at U.S. Bancorp in Minneapolis. At 13 of the largest U.S. banks, bad assets increased 169 percent on average from a year ago, according to first-quarter data compiled by Bloomberg.

Clearly, so long as the economy doesn’t improve, non-performing assets will rise. That will mean fewer loans from banks and fewer investments in the financial sector from private investors,

*****Ford (NYSE:F) lost $1.4 billion in the first quarter. The company . . .

The Russell 2000 (NYSE: IWM) futures are a little higher and the small-cap index will likely open with a small rise.

There is no major economic news scheduled for today, but the Dallas Federal Reserve President’s speech at 1:30 p.m. ET is likely to make headlines.

Among small-cap companies, Ballard Power Systems Inc. (Nasdaq: BLDP), which makes fuel cells, said that it expects to ship twice as many units in 2008, bringing in total revenues of between $65 million and $75 million.

Small-cap stocks staged a dramatic bearish reversal Thursday, as the Russell 2000 rejected a promising morning rise to shed 13.74, or 1.94% to 696.28 by the close. The market continues to reflect indecision within the recent range – unwilling to sustain a dynamic move in either direction.

The market will be able to navigate through today's session unencumbered by outside economic news. It will be interesting to see if the Russell starts to falter below the 700 swing line after four sessions of see-saw action along that point so far this week. Look for support Friday at 694, 688 and 680; resistance comes in at 703.50, 712 and 717.

 

The Russell 2000 small-cap index and the Dow are in positive territory this afternoon. At 2:26 p.m. ET the Russell 2000 was up 2.37 points, or 0.28%, to 852.50. The Dow Jones Industrial Average had gained 38.36 points, or 0.28%, to 13,604.20.

Shares of Epoch Holding Corp. (Nasdaq: EPHC) are appreciating following news the provider of investment advisory services has increased its assets. As of June 30, the assets under management were $6.0 billion, a rise of 12%, compared with assets of $5.4 billion as of March 31, the New York-based company said after Thursday’s close. Shares are up $0.67, or 5%, to $13.69.

Restaurant chain Ruth's Chris Steak House, Inc. (Nasdaq: RUTH) expects revenue between $76.9 million and $77.1 million for the three months ended June 24 – below Wall Street expectations of $78.1 million.

After Thursday’s closing bell, Texas Attorney General Greg Abbott sued Mannatech, Inc. (Nasdaq: MTEX), accusing the nutritional supplements maker of an illegal marketing scheme. Abbott’s claim, which could cost Mannatech at least $20,000 for each violation, alleges that the Coppell, Texas-based company inflated claims about the therapeutic benefits of its products for people with cancer, Down syndrome, cystic fibrosis and other illnesses to boost profits.

The following are the most actively traded companies in Friday pre-market trading among those with market capitalizations under $500 million:

Shares of DivX Inc. (Nasdaq: DIVX) fell by $2.00, or 10%, to $18 on heavy volume in after-hours trading today after the San Diego, Calif.-based digital media company reported first-quarter earnings that came in below analysts’ estimates. For the three months ended March 31, DivX reported net income of $3.7 million, or $0.10 per share, on revenue of $20.2 million, compared with net income of $3.3 million, or $0.11 per share, on revenue of $14.1 million in the 2006 first quarter. Seven analysts polled by Thomson First Call had estimated earnings per share of $0.14 on revenue of $19.8 million. In just the first half-hour of extended-hours trading, more than 1.36 million shares had changed hands, compared with an average three-month daily volume of about 657,000 shares.

Shares of Novatel Wireless Inc. (Nasdaq: NVTL) rose by $0.79, or 4.2%, to $19.50 on heavy volume late today after the wireless broadband access solutions provider raised its 2007 non-GAAP earnings guidance by more than 50% to $1.00 to $1.05 per share. Twelve analysts polled by Thomson First Call were expecting earnings per share of $0.64 on revenue of $365.9 million. For the first quarter ended March 31, San Diego-based Novatel reported non-GAAP net income of $12.1 million, or $0.40 per diluted share, on revenue of $110 million. Analysts had estimated earnings per share of $0.28 on revenue of $98.3 million.