Tag - Ultr

Small-cap stocks pushed modestly higher on the opening, and were still holding in positive territory after a dreadful manufacturing report slashed away gains in large-cap index products. Today’s small-cap gainers are Ultrapetrol Limited (Nasdaq:ULTR), Seneca Foods Corp. (Nasdaq:SENEA) and Orion Marine Group Inc. (NYSE:OMGI).

Other Market Watch highlights today included:

• Now that ISM is out of the way, focus will return to debate about the U.S. elections. Since 1900, the stock market has averaged a gain of nearly 10% in the 12 months following a Democrat transition into the White House.  
• The ISM Manufacturing Survey came in at 38.9%, which was below the forecast of 42% and marked the lowest manufacturing activity index in 26 years.  
• Small-cap stocks pushed modestly higher on the opening, and were still holding in positive territory after a dreadful manufacturing report slashed away gains in large-cap index products.
• The ISM figure is expected to come in at 42%, well below the 50% line that indicates contraction.  
• Heavy week for economic data risk: things kick off at 10:00 a.m. ET today with the ISM Manufacturing Survey and finish with a flourish Friday morning with the big employment report.  

Small Cap Gainers:

• Ultrapetrol Limited is up almost 50% in pre-market ahead of its Q3 earnings release next week. See (Nasdaq:ULTR).
• Seneca Foods Corp. is up 25%, gapping higher on light volume. See (Nasdaq:SENEA).  
• Orion Marine Group Inc. jumped 24.9%. See (Nasdaq:OMGI).  
• Safe Bulkers Inc. is up 12.8%, climbing above the 20-day moving average for the first time since early September. See (NYSE:SB).  
• SourceForge gaining 8.5% in pre-market, guides in line, sets stock buyback. See (Nasdaq:LNUX).


Small Cap Losers:

• AtriCure Inc. is tumbling 43% on news that the firm is under investigation by the Department of Justice for potential false claims on the company’s surgical devices. See (Nasdaq:ATRC).  
• Ness Technologies profit rises 121%; shares down 5% in pre-market. See (Nasdaq:NSTC).  
• Phoenix Companies down 12% as it slips to a loss in Q3. See (NYSE:PNX).  
• GMAC's bonds tumble after plan to exchange debt, shares dive over 10%. See (NYSE:GMA).  

Small-cap stocks edged lower in morning trading, pulled down by follow through jitters from Tuesday’s financial-tied slide and a firm tone in energy as a batch of morning economic data failed to impress investors. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.61, or 0.22%, at 743.33.

The market was already struggling ahead of the economic reports this morning, and there simply wasn’t any upside surprise on the retail sales or import price fronts to spark a recovery move. Still, the retail sales figure was in line with expectations, while the import price surge isn’t exactly a surprise. Import prices soared 1.7%, which was above the forecast, and year-over-year prices were up 21.6%, the highest rate in 26 years, stealing some of the thunder away from retail sales. The jump on inflation reflected in the import price report sparked a modest pullback in Treasury futures, which frown on rising prices that devalue fixed income investments.

The dollar was little changed after the duo of economic reports, but did start to strengthen against the euro into the U.S. stock market open after slipping to six-month highs during Tuesday’s session. The greenback remained soft against the yen, however, and has been in correction mode since leaping to seven-month highs just three sessions ago. The firmness in the yen is a little surprising given a slide in GDP overnight that stirred a 2.1% fall in Japanese equities. Elsewhere around the globe, stocks were trading in weak fashion, with Hong Kong shares off 1.6%, Australia down 2% and India down 0.7%.

At 10:00 a.m. ET, the business inventory report came out at plus 0.7%, which was above the forecast for a rise of 0.4%. This particular data series is somewhat dated (June figures) and tends to have very little lasting impact on stock market traders.

With the economic data now out of the way, stock market traders here in the United States will likely keep a close watch on financials and on crude oil as . . .

Here are the biggest percentage gainers and losers in pre-market trading among companies with a market cap between $50 million and $750 million:

Biggest percentage gainers:

• Fuel Systems Solutions, Inc. (Nasdaq:FSYS), up 19% after reporting first-quarter results after Monday’s close that beat the street and raised full-year revenue guidance.
• Kenexa (Nasdaq: KNXA), up15% after the global provider of talent acquisition and retention services reported first-quarter earnings after Monday’s close that trumped the consensus on Wall Street, while revenues met. The company also issued full year guidance above analysts’ estimates and second-quarter revenues above the Street.
• Ultrapetrol (Bahamas) Ltd. (Nasdaq:ULTR), up 13% after the industrial transportation company reported first-quarter results Monday evening that beat the consensus on Wall Street. The small cap attributed the robust results to strong demand in all of its main lines of business.

Biggest percentage losers:

• ShopNBC (Nasdaq:VVTV), down 10% after the 24-hour TV shopping network said after Monday’s close that it expects to report a decline in first-quarter revenues below the consensus on Wall Street, as the company grappled with a difficult consumer economy and a slowdown in discretionary spending.
• Hoku Scientific, Inc. (Nasdaq:HOKU), down 7% after reporting fourth-quarter results this morning that fell short of the consensus view on Wall Street.
• Comverge, Inc. (Nasdaq:COMV), down 5% after reporting a first-quarter net loss that was wider than Wall Street expected, but narrower from the year-ago quarter. 

The Russell 2000 (NYSE:IWM) closed with a remarkable gain following news that the U.S. Federal Reserve has lowered its target interest rate. The small-cap index rose 31.45 points, or 4.83%, to 681.93. The Dow Jones Industrial Average (INDU) advanced 420.41 points, or 3.51%, to 12,392.66.

On a year-to-date basis, the Russell 2000 has retreated 10.98%, while the Dow is down 6.57% and the S&P 500 has let go 9.37%.

Small-cap stocks soared higher than their larger counterparts and added to their earlier gains on news after the start of trading that the U.S. Federal Reserve has decided to lower its target interest rate 0.75% to 2.25%.

“Recent information indicates that the outlook for economic activity has weakened further,” the Fed said in a statement. “Growth in consumer spending has slowed and labor markets have softened.”

The market had priced a full 1% of the federal funds rate, the rate at which commercial banks make overnight loans to each other, but policymakers expressed concern about inflation.

The Russell 2000 (NYSE:IWM) and the Dow are jumping on expectations of a rate cut and news that major investment banks beat quarterly profit expectations.

At 10:08 a.m. ET, the small-cap index had climbed 16.01 points, or 2.46%, to 666.49. The Dow Jones Industrial Average (INDU) was up 238.70 points, or 1.99%, to 12,210.95.

The bulls are roaring and stocks small and large are flying high following news before the opening that fiscal first-quarter profit at investment banking giant The Goldman Sachs Group, Inc. (NYSE:GS) fell 53% but beat Wall Street’s projections. Similarly, Lehman Brothers Holdings Inc. (NYSE:LEH) also beat expectations despite a decline in profit.

That’s good news for investors, who were looking to see if investment banks will be able to weather the financial turmoil, particularly after Bear Stearns’ (NYSE:BSC) spectacular demise.

Helping the bulls establish their dominance is anticipation that the U.S. Federal Reserve will lower its target federal funds rate at its regularly scheduled policy meeting. The market is pricing a full 1% cut in the federal funds rate, dropping it to 2% from the current 3%. A decision will be announced at about 2:10 p.m. ET.

The federal funds rate is the rate at which commercial banks make overnight loans to each other.

The Russell 2000 (NYSE: IWM) posted a big loss as news of liquidity problems at Bear Stearns spread credit fears. The small-cap index fell 16.81 points, or 2.47%, to 662.90. The Dow Jones Industrial Average (INDU) declined 194.65 points, or 1.60%, to 11,951.09.

On a year-to-date basis, the Russell 2000 has lost13.46%, while the Dow is down 9.90% and the S&P 500 has retreated 12.27%.

Stocks small and large tumbled today on news that Bear Stearns’ (NYSE: BSC) cash position has deteriorated significantly over the past 24 hours. The investment bank, which has been highly exposed to the subprime mortgage sector, turned to J.P. Morgan Chase & Co. (NYSE: JPM) and the New York Federal Reserve for short-term financing to alleviate its liquidity problems.

There’s speculation that Bear Stearns will soon be purchased by one of its larger rivals. News of the company’s problems spread fears of a severe credit squeeze, leading to a sharp sell-off.

International shipping companies are benefiting from steadily increasing global trade, rising imports/exports from China and other Asian countries, and expanding global demand for oil, coal, agricultural products and other commodities that are generally shipped via ocean tankers and container vessels.

Robust growth in shipping industry volume is evidenced by the increase in container shipments bringing products into China. More than 58 million containers passed through China’s ports in 2004. This number is forecast to more than double to 120 million containers by 2010. In addition to booming China traffic, container shipments are increasing because of above average GDP growth in the U.S. western coastal states. Industry investment in expanding U.S. terminal capacity is forecast to rise 5.1% annually between 2004 and 2010.

Accelerated offshore drilling activity is heightening demand for offshore supply vessels. These vessels transport dry and liquid cargos, including drilling equipment, pipe and drilling fluids to and from the offshore site. Day rates for these vessels have risen dramatically, from approximately $15,900 per day in 2004 to $30,400 per day in 2005 and $48,600 per day in 2006. In the first few months of 2007, day rates have averaged around $53,300.

Contract rates for the large oil tankers that move oil from one country to another also benefit from rising global oil demand and the limits of a fleet consisting of only about 6,800 vessels worldwide. Oil companies own some of these tankers but the vast majority are independently owned and operated. Charter rates for the larger tankers have risen significantly due to increased long haul trade to Asia and the United States and increased U.S. imports. One-year rates rose from $24,800 per day in 2003 to peak at $34,900 in 2005. While rates have since declined to $31,000 per day in early 2007, they remain at historically high levels.