Stocks Close Higher, Volume Lags
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The major indexes closed higher, although volume was mixed.
Based on preliminary figures, the New York composite rose 0.4% to an all-time high; the Dow’s 0.2% climb also achieved a record; and the S&P 500 added 0.4%. Nasdaq volume rose a tad, while NYSE’s came off a bit.
Huron Consulting Group () surged 2.35 to 66.59 in solid trade. But the stock got as high as 70.12, a new high, before cooling off and closing in the lower half of the day’s trading range. The financial and operational consultant reported 82 cents a share in its Q1, 82% more than its year-ago result.
Huron’s guidance also pleased the market: 53 cents to 57 cents for Q2, vs. views of 51 cents. And it looks for full-year 2007 to total $2.24 to $2.37, compared to a consensus of $2.22, according to Thomson Financial.
Nice Systems () added to its long and steady uptrend 1.74 to 38.92, a new high, in brisk trade. The Israel-based maker of recording and monitoring gear gapped up on the opening and maintained that edge throughout the day. The company announced a seven-year deal with the U.S. Federal Aviation Administration, worth up to $69 million, for air traffic control gear. The initial order under this contract was for $2.7 million.
Dawson Geophysical () gained 1.63 to 58.88, a new high. This was on top of Wednesday’s 11% surge. As recently as Tuesday, shares came within 85 cents of its 10-week moving average. The provider of data to oil and gas explorers reported early Wednesday 70 cents a share in its Q2. But that 23% gain from its year ago compares poorly with the previous quarter’s 137% improvement.
Internet marketing firm ValueClick () gapped down and fell 2.22 to 27.09 in triple its usual trade. The loss puts the stock below its 10-week line. If it doesn’t recover Friday, the weekly chart will show a bearish reversal. ValueClick beat earnings views. But it upped its ‘07 earnings guidance to 79 cents to 81 cents, below analysts’ consensus of 81 cents.
Shares of Irish air carrier Ryanair Holdings () gapped down and lost 2.98 to 44.42 in a busy session. The stock closed below its 10-week line. The company warned of smaller volumes and lower fares in the second quarter. That bad news couldn’t offset an upgrade by UBS.
4 p.m. update: Indexes Back To Session Highs In Late Trade
The main stock indexes revisited session highs in late trading, though buyers weren’t out in force.
The S&P 500, NYSE composite and Nasdaq were all up 0.4%. The Dow lagged with a 0.2% gain. NYSE volume was running about 4% lower and on the Nasdaq 1% slower. If the pattern holds, it would be the second-straight day of gains on weaker volume.
Still, a couple of noteworthy stocks moved past buy points.
Internet Gold () broke out of a nine-week cup-with-handle base. Shares rose 1.90 to 16.36 on heavy trading, passing a 15.58 buy point. The Israel-based company is an Internet service provider that also operates Web portals and e-commerce sites.
Inter Parfums () rose 0.62 to 23.67, clearing an eight-day consolidation that could be deemed to be a high handle. The stock had broken out of a cup base April 20. The perfume and cosmetics company reports earnings next Thursday. It had been in a long slump since March 2004.
On the downside, Andersons () gapped down below its 50-day moving average, losing 4.10 to 42.13. The grain and ethanol company late Wednesday reported earnings and gave a 2007 profit outlook below analysts’ consensus. Andersons had been recovering from a steep correction.
1 p.m. update: Stocks Hold Gains, Not Running Away
By DONALD H. GOLD
Stocks held onto modest gains in the early afternoon.
As of 12:52 p.m. eastern, the S&P 500 was up 0.3% — barely above that 1500 level. The Nasdaq was up 0.2% while the Dow had a fractional gain. Nasdaq volume was tracking 7% higher, while NYSE volume was pacing about even with Wednesday’s levels.
Railroads and other transportation stocks were among the day’s best performing. Insurance, fertilizers and steel were other groups climbing.
Armor Holdings () shot up 3.42 to 75.50 as volume surged to eight times its norm. If that pace holds for the day, Armor Holdings will put in its biggest one-day volume in months. The maker of human safety and survival gear and blast-proof vehicle armor broke out of a cup-with-handle pattern Feb. 1 over 61.50. Thursday’s surge is a strong rebound off its recent tests of its 10-week moving average. Armor Holdings announced Monday morning it had won a $32 million contract to provide the U.K. military with armored vehicles.
Dolby Labs (), which had been unraveling like a cheap suit, rebounded 2.45 to 37.50 on six times its average volume. Dolby, a big name in audio technology, reported 34 cents a share on $129 million in sales. The Street expected just 2 27 cents on $116 million, according to a poll by Thomson Financial.
Chipotle Mexican Grill (), which shot up Wednesday 18%, added 1.78 to 79.87 in high turnover, but not as high as Wednesday’s monster trade. The stock hasn’t yet taken out Wednesday’s peak, 80.75. But this surge is a fine rebound after spending time riding its 10-week line higher. The stock is still shining from its first-quarter results, issued late Tuesday.
On the downside, Tesoro () slid 8.22 to 115.61 in harsh action. The San Antonio, Texas-based oil refiner and marketer earned $1.67 a share on $3.88 billion in sales in the first quarter. That profit gain fell shy of views for $1.86. Sales, which were flat vs. a year ago, were expected to total $4.07 billion.
Jones Lang LaSalle () slumped 3.73 to 116.37 on three times its average trade. Shares of the company soared nearly 13% Wednesday — breaking out of a cup with a slightly high handle — on the back of a hot earnings report. Its 81 cents a share blew past views of a 7-cent gain. Jones Lang LaSalle provides real estate and money-management services worldwide.
Hotel and casino operator MGM Mirage () fell 2.25 to 66.07 in active business. It missed views by 4 cents in its just-ended quarter with 59 cents a share. A Citigroup analyst blamed the disappointing numbers on weak gaming income from Las Vegas and high costs for the construction of new projects.
11 a.m. ET Update: Positive Data Boost Stocks, Nudge S&P 500 To 7-Year High
Key economic data ran against expectations, launching stocks to early gains. That helped push the S&P 500 past the 1500 markits highest point since September 2000.
The NYSE composite was up 0.3%, the Nasdaq 0.4% at 10:53 a.m. ET. The Dow industrials rose 0.2%. Volume was tracking 20% above Wednesday on the NYSE, 11% higher on the Nasdaq.
The Shanghai composite rose 2.2% and the Nikkei 225 gained 0.7%.
Wages, measured in unit labor costs, climbed 0.6% in the first quarter. That gave support to the idea of a Fed rate cut this year. The Labor Department also reported a drop in jobless claims, from 326,000 to 305,000, for the week ended April 28. Forecasts called for a 1,000 rise in claims.
Business activity in the non-manufacturing sector moved up to 56 in April from 52.4 in March, according to the Institute for Supply Management. The index topped expectations of 54, according to Briefing.com. Index readings of 50 and above suggest economic expansion; below 50, contraction. The ISM said April was the index’s 49th straight month of growth. The services industries included in the group produce approximately 80% of U.S. economic activity.
NVE Corp. () gapped up and gained 5.68 to 35.31. The company reported Wednesday that Q1 earnings rose 154% to 33 cents6 cents above analysts’ consensus estimate. Sales grew 31%. The company, which makes sensors used in automobiles and aircraft, has turned in triple digits EPS growth and sales growth above 20% for the past four quarters.
Corrections Corp. of America () gained 2.03 to 59.28 after reporting first-quarter EPS rose 44%, topping analysts’ views by 13%. Sales rose 11%. Analysts expect 19% EPS growth for the year, and sales to slow to single-digit growth. The operator of private correctional facilities has beaten estimates in each of the past six quarters.
GFI Group () jumped 2.16 to 71.62 on news that Q1 EPS rose 34%. That was 13% above analysts’ views. Sales grew 29%. A brokerage and analytics services provider to institutional clients, GFI has turned in EPS growth of 27% or better in the past three quarters. First-quarter sales were slowest since 2005. Analysts see 25% EPS growth for the year. The company has topped forecasts since 2005.
Credit card heavyweight Mastercard () rose for a second day, gaining 3.93 to 130.28. The company reported a 67% EPS rise for Q1, beating consensus views by a full 35%. Sales rose 24%Mastercard’s best showing since 2005. Quarterly earnings have been hit-and-miss, but the company has steadily increased annual results since 2004.
On the downside, Town Sports International () gapped below its 50-day moving average and shed 2.38, or 10%, to 20.30 on fast trade. Late Wednesday, the fitness club operator said first-quarter profit surged 600%, but that was 3 cents shy of views. Sales rose 11% to $115.4 million, slightly below views. The company reiterated its full-year outlook of 79 cents to 83 cents in earnings. Analysts expected 82 cents.
Airgas () gapped down and slumped 3.02, or 7%, to 42.20. After the close Wednesday, the company delivered a 26% jump in fiscal Q4 profit, beating views. But it guided first-quarter earnings of 52 cents to 54 cents, below consensus estimates of 57 cents. The stock cut its 50-day line early on, but climbed back above it.