Tag - Slb

Small-cap stocks are expected to open higher, still riding a wave of better-than-expected earnings results, while basking in the glow of a sharp pullback in crude oil prices this week. The Russell 2000 (NYSE:IWM) was up sharply in after-hours trading, well ahead of the pace in other index products and is expected to open near 700.50.

Although crude oil prices have collapsed some $16 dollars a barrel this week, they were higher overnight, rising about $1.50 dollars back above $130, which is no surprise ahead of a weekend. As long as crude oil doesn’t rally much more during the session today, it should allow investors to focus on earnings numbers.

Speaking of earnings, the news on major large-cap issues was mixed overnight, but traders seem to embrace the good news over the bad. The good was highlighted by Citibank (NYSE:C), as the nation’s largest bank posted a smaller-than-forecast loss and jumped well over 5% in overnight trading. Also, Schlumberger (NYSE:SLB) was up about 3% as revenue topped expectations.

As for the bad, Merrill Lynch (NYSE:MER), the third-largest investment bank, tumbled about 3% overnight when earnings disappointed. Also, tech stocks Google (Nasdaq:GOOG) and Microsoft (Nasdaq:MSFT), were down in after-hours . . .

Small-cap stocks pushed higher Tuesday, bolstered by a sharp pullback in crude oil prices that allowed a little breathing room toward inflation fears and the consumer spending picture. In addition, Federal Reserve Chairman Ben Bernanke said that the central bank could extend the emergency lending window to strapped financial institutions, which took a little heat off the credit crunch — at least momentarily. The Russell 2000 (NYSE:IWM), gained 24.46, or 3.72%, to 682.72, generating the largest one-day gain since March 18 and the third largest one-day percentage rally of the year.

Small-cap stocks were noticeably stronger than their large-cap brethren, which were dragged down by significant losses on key oil stocks such as Exxon Mobil (NYSE:XOM), which was down 0.7% heading toward the close, Chevron (NYSE:CVX), off 1% and oil services stock Schlumberger Ltd. (NYSE:SLB), which shed 3.7%.

Before the stock market open earlier today, Bernanke’s comments erased solid overnight losses in stock index futures, and helped alleviate mounting worldwide concern about the health of the banking system. Before the Bernanke rescue, European shares were sinking, paced by a slide to five-year lows in bank stocks, and elsewhere around the world global stock index products slipped into bear market territory.

Even though the tone improved with today’s recovery in equities, the market is still clearly in a tenuous position fretting about high energy costs amid sluggish . . .

The Russell 2000 (NYSE:IWM) is expected to open slightly lower, pulled down by weakness in European shares overnight, and by analyst downgrades in the banking sector. The Russell 2000 and S&P 500 futures were both off about 0.1% this morning, which would translate to an opening near 723.50.

Bank of America trimmed its outlook for some key firms in the banking sector, including Lehman Bros. (NYSE:LEH), Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS), all three of which were trading lower in after-hours action.

As usual, crude oil remains a key focus for equities to start the holiday-shortened week. Crude oil prices jumped back up near $133 dollars a barrel overnight, lifted by unrest in Africa, which could curb supplies.

Deutsche Bank lowered its rating overnight on ...

In the past, industrial customers maintained broad supply chains, contracting with numerous local distributors. This method is changing, though. Motivated by the need to reduce costs and improve inventory turns, most industrial customers are consolidating their supply chains and relying on first-tier distributors that can provide one-stop shopping. These customers are also demanding value-added services such as integrated supply, system design, and equipment fabrication, installation and maintenance. 

This supplier consolidation is creating budding opportunities for DXP Enterprises, Inc. (Nasdaq: DXPE) a leading U.S. supplier of maintenance, repair and operations (MRO) services, and KHD Humboldt Wedag International, Ltd. (NYSE: KHD), a global provider of plant design and equipment procurement services.    

KHD Humboldt provides industrial plant engineering services and equipment to mineral processors. It is a leading supplier to the global cement-manufacturing market and offers its customers proprietary technologies, plant and equipment design, and customized systems for process control and equipment optimization.

Formerly a merchant bank, KHD shifted its focus to industrial plant engineering in 2006. Since then, it has established operations in India, China, Russia, Germany, the Middle East, South Africa and the United States.

During the first nine months of 2007, KHD’s revenues grew 75% year-over-year to $418.8 million from $239.6 million and income from continuing operations climbed 102% to $38.6 million, or $1.27 per share, from $19 million, or $0.63 per share. New orders rose 123% in the September quarter to $240 million and exceeded $569 million for the nine-month period. Backlog totaled $762 million; nearly 90% of backlog was contracts in China, India, Russia and other emerging economies. KHD expects a 70% increase in full-year 2007 earnings to be between $1.70 and $1.75 per share.