Tag - Utx

Small-cap stocks pushed higher on the opening, powered by a decent corrective bounce in the wake of Wednesday’s epic collapse. Bargain hunters were back nibbling in stocks after this morning’s initial batch of non-manufacturing economic indicators came in relatively mild and didn’t serve up any stunners like Wednesday’s huge drop in retail sales. In addition to the tame economic data, Libor inter-bank lending rates slipped in European trading, which bolsters confidence that frozen credit lines and lending mistrust is thawing as governments around the world push liquidity into the system and guarantee loans. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was up 11.18, or 2.23%, at 513.28.

After wholesale prices (PPI) came in near the forecast Wednesday, consumer prices (CPI) were slightly better than projected, but it’s really no surprise that inflation fears have receded — after all, crude oil prices are at 13-month lows and commodities in general are at the lowest level in three years. More importantly, the weekly unemployment claims release was better than feared, with 461,000 people filing for unemployment insurance in the latest week, down from the forecast of 470,000. Still, 461,000 is a very big number historically and the four-week moving average on claims is still at a seven-year peak. Analytically, there is a case to be made that jobs data will continue to look awful for some time, but will be a lagging element on the recovery story. That argument will gain favor from investors looking for last week’s lows to be a major turning point for the stock market.

However, stock index futures started to trim away gains after a horrendous industrial production report came out just ahead of the opening at 9:15 a.m. ET. Output tumbled 2.8%, much worse than the forecast for a decline of 0.8% and the slide represented the biggest decline in nearly 34 years. Hurricane Gustav and a strike at aircraft maker Boeing exaggerated the decline in output. Industrial production data seldom sparks a big move in the market nowadays, and clearly investors were looking at other factors this morning if they were able to shrug off this weak report in favor of the relatively painless inflation and jobs reports earlier this morning. The Dow and S&P 500 slipped back into the red briefly after the Philly Fed survey came out well below the forecast, mirroring sobering news on the manufacturing front that we’ve . . .

Small-cap stocks generated another solid rally Thursday, boosted by decent earnings from key bellwether stocks and a downward spiral in crude oil prices. The Russell 2000 (NYSE:IWM) closed up 9.88, or 1.44%, at 696.63.

For the second consecutive session, investors were willing to dip their toes back into what had been chilly water surrounding the financial arena. The Financial Select Sector SPDR Fund rose 5.3% and pushed through the 20-day moving average for the first time since mid-May. Within the financial sphere, JP Morgan (NYSE:JPM) was the big catalyst for the bulls today, jumping 10% after reporting solid quarterly earnings that topped the forecast. Once again, embattled government-sponsored mortgage giants Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) produced a stout rally, which calmed investor fears about the banking system and lent a supportive tone as well.

Crude oil prices tanked again today, crumbling some $5 dollars a barrel to slip through $130 dollars as options expirations heightened a selling mentality that was already in play amid concerns about softer demand from the higher price structure. Lower energy costs would be a welcome sign not only to consumers already pinched from higher food and gasoline prices, but also from many businesses that have seen margins sliced away by higher input fuel costs. Elsewhere on the commodities inflation front, soybeans, corn, wheat, sugar and cocoa all were sharply lower, and the iPath GSCI Total Return commodities index tumbled 3.0%.

While JP Morgan’s strong results appeared to be a driving force behind today’s stock market rally, there was a raft of big name companies that had surprisingly stout quarterly earnings on display. For example, United Technologies Corp. (NYSE:UTX), the world’s largest maker of elevators and air conditioners, climbed a cool 5.8% after beating the Street’s forecast. Within the capital-goods industry, UTX . . .

Small-cap stocks pushed higher on the opening, lifted by solid earnings results from key names in the large-cap arena, which spilled over into the overall market psyche. In addition, economic reports have been a mild upside surprise this morning and stock markets overseas were higher overnight, which helped set up a platform to extend Wednesday’s big rally. At 10:03 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.35, or 0.49%, at 690.10.

In overseas trading, European shares were up about 2%, Japan was up 1%, Hong Kong rallied 2.4%, Taiwan surged 3.9%, India was up 4.2%, South Korea up 1.2%, Singapore up 1% and Australia up 0.6%.

Crude oil futures drifted higher after the stock market open, which drained away some of the morning gains in equities. Crude oil prices were lower overnight, and are down some $10 dollars a barrel off the recent highs, but traders remain sensitive to the volatile nature of energy markets, especially when recent declines have been short-lived.

Headline figures from economic data this morning have been much improved over the sobering inflation reports seen Tuesday and Wednesday. Weekly claims rose to 366,000 this week, but were below expectations for a rise to 380,000. Also, housing starts jumped 9.1%, which was far better than the forecast for a 1.5% dip. However, the housing starts report was boosted by data quirk adjustments and it will take more evidence in future reports to suggest that the housing market is anywhere near the recovery road.

The final piece of today’s data puzzle came in at 10:00 a.m. ET, with the July Philly Fed Survey, which came in softer than expected at minus 16.3 and appeared to pull stock index products off the morning highs.

The market is now deep into Q2 earnings season, and some of the “big” . . .

Small-cap stocks were on target for a solidly higher open, buoyed by decent earnings results from key large-cap names, gains in overseas equities markets and better-than-expected economic data this morning. The Russell 2000 (NYSE:IWM) was up about 0.7% in after-hours trading, which suggests an opening near 691.

On the data front, weekly claims came in at 366,000, which was better than the forecast for a number closer to 380,000. Also, the four-week moving average dipped as did the continuing claims numbers. Meanwhile, housing starts in June staged a stunning 9.1% rise instead of a forecast drop, climbing to 1.06 million units, well ahead of the forecast for a 960,000-unit pace. However, the number was “goosed” by a change in New York City building codes, and would have actually been lower without that data quirk. The immediate response to the economic numbers was an extension of overnight gains in stock index futures products.

Large caps setting a positive tone early on included Coca-Cola Co. (NYSE:KO), United Technologies (NYSE:UTX) and JP Morgan (NYSE:JPM), all of which posted better-than-expected earnings, continuing a theme set forward Wednesday when solid results from Wells Fargo & Co. (NYSE:WFC) set a big rally in motion.

The chart picture has improved tremendously this week, starting with a sound rejection of fresh move lows Tuesday, the formation of a doji reversal candle, and the required validation of that pattern during Wednesday’s rally. If the Russell . . .

A rollercoaster ride of trading today ended with the Russell 2000 (NYSE: IWM) gaining ground while the Dow fell after news of a temporary rise in the price of oil. The small-cap index added 1.54 points, or 0.19%, to 824.89. The Dow Jones Industrial Average (INDU) shed 20.40 points, or 0.15%, to 13,892.54.

On a year-to-date basis, the Russell 2000 has increased 4.76%, while the Dow has added 9.11%.

Stocks began on a bullish note following news of better-than-expected third-quarter earnings from tech sector heavyweights Intel Corp. (Nasdaq: INTC) and United Technologies Corp. (NYSE: UTX), but quickly shed those gains halfway through the trading session as the price of oil briefly rose to an intraday high above $88 a barrel.

Investors got jittery around noon ET, after the Turkish parliament overwhelmingly approved a military attack into northern Iraq in order to fight Kurdish rebels, causing the price of oil to clear $88 a barrel before moderating down to $87.40. A cross-border spat could disrupt Iraq’s oil supplies.

Nevertheless, small caps managed to sneak into positive territory just before the close, while the Dow languished in the red.

Meanwhile, U.S. housing starts fell to the lowest annualized pace in 14 years in September. The U.S. Census Bureau announced today that housing starts fell to 1.191 million, missing economists’ projections of 1.285 million. The level in August was an upwardly revised 1.327 million of privately owned housing units.

The stagnation in the housing sector seems to have no end in sight, as building permits, an indicator of future construction plans, also fell.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices are higher this morning as news of strong earnings overshadows unimpressive economic data.

At 10:42 a.m. ET, the small-cap index had added 4.32 points, or 0.52%, to 827.67. The Dow Jones Industrial Average (INDU) was up 24.31 points, or 0.17%, to 13,937.25.

The first bullish earnings news came out after the close on Tuesday when search engine Yahoo! Inc. (Nasdaq: YHOO) reported third-quarter profit that outpaced Wall Street’s projections. The Sunnyvale, Calif.-based company said that net income slipped to $151.3 million, or $0.11 per share, compared with $158.5 million, or $0.11 per share a year earlier. However, analysts were forecasting earnings of $0.08 per share.

The trend of tech sector heavyweights beating earnings projections continued today with Intel Corp. (Nasdaq: INTC) and United Technologies Corp. (NYSE: UTX) also announcing better-than-expected quarterly financials.

Futures were up and small and big caps were poised for even bigger gains when news that the U.S. housing sector continues to agonize pulled the bulls back.

The U.S. Census Bureau reported before the opening that housing starts for the month of September fell to their lowest annualized pace in 14 years.

The Russell 2000 (NYSE: IWM) futures are higher and the small-cap index will probably open in the green on news of strong earnings.

The bulls are poised this morning following news of better-than-expected earnings from the tech sector.

Search engine Yahoo! Inc. (Nasdaq: YHOO) got the ball rolling after the close on Tuesday when the Sunnyvale, Calif.-based company reported third-quarter net income that outpaced Wall Street’s projections.

This morning Intel Corp. (Nasdaq: INTC) also beat analysts’ third-quarter forecasts, while United Technologies Corp. (NYSE: UTX) announced that its net income increased 20% due to strong demand across the board and revenue rose 14%. Wall Street was expecting more modest gains.

However, holding the bulls down is news that September U.S. housing starts fell to the lowest rate in 14 years.

The Census Bureau reported that builders broke ground on 1.191 million units at an annualized pace in September, well below the 1.285 million units expected by economists. Housing starts were an upwardly revised 1.327 million in August.

In other economic news, the U.S. Labor Department reported that the consumer price index, the main measure of inflation, grew 0.3% in September, following a fall of 0.1% in August. Economists were expecting a slightly lower reading of 0.2%. Core inflation, which excludes the cost of food and energy, was 0.2%, in line with economists’ forecast.

The Russell 2000 (NYSE: IWM) and the Dow are posting slim gains with two hours left in the trading session. At 1:58 p.m. the small-cap index was up 1.42 points, or 0.18%, to 781.77. The Dow Jones Industrial Average (INDU) had added 16.42 points, or 0.12%, to 13,441.30.

Stocks spent the morning in negative territory but moved higher and pierced the flat line at about 12 p.m. ET, as investors put aside news of generally downcast economic statistics.

Industrial production increased 0.2% in August, the U.S. Federal Reserve reported before the opening bell. That’s less than the expected rise of 0.3% and below the upwardly revised increase of 0.5% in July.

Breaking down the numbers, manufacturing dropped 0.3%, interrupting five months of increases, while mining fell by 0.6%. On the plus side, unusually warm weather resulted in a 5.3% increase in the output of utilities.

Boulder, Colo.-based Dynamic Materials Corp. (Nasdaq: BOOM) is a leader in the explosion-welded clad metals market (a segment specializing in using an explosive process to fuse non-compatible metals—which cannot be welded by conventional processes—creating bonds that are stronger than the metals themselves). Dynamic Materials has made shrewd moves in the past few years, including key acquisitions in the United States and Europe. Today, the company controls as much as 40% of worldwide market share (predominantly in North America and Europe), though it still faces competition in Asia from Japanese player Ashai Kasei Corp. (OTC: AHKSY) and several Chinese companies.

Dynamic Materials supplies a diverse customer base, ranging from energy companies to shipbuilders to the aerospace industry. Key customers include Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), General Electric Co. (NYSE: GE) subsidiaries GE Energy and GE-Aviation, Rohm & Haas Co. (NYSE: ROH), divisions of United Technologies Corp. (NYSE: UTX) Betchel, and Pratt & Whitney.

The year 2006 was good to Dynamic Materials. The company saw profits rise 42% with revenue growth of 30% (its stock has averaged annual returns of 208% over the past three years), earning it a seat on Fortune's 2006 list of the “100 Fastest-Growing Companies.” After a banner year, Debra Fiakas, CFA, an analyst with Crystal Equity Research, said her firm initiated coverage of Dynamic Materials “based on its growing dominance of the metals cladding market. Strong cash flow generation and a pristine balance sheet provide resources for future growth initiatives."

DMC's revenues totaled $33.1 million in the first quarter of 2007, a year-over-year increase of 32%. The company's backlog in the first quarter was $68 million, compared with just $34 million two years earlier. A record backlog is expected in the second quarter. These impressive numbers have helped propel Dynamic Materials to the eighth spot on Business Week's annual list of “100 Hot Growth Companies.”