Today’s stock market is all about data. There is plenty for the the average investor to digest, and not all of it paints a clear picture. The ADP report showed gains, but its trend of increases has officially been broken. Not enough to create havoc in the NFP report on Friday, but enough for investors to take a step back and wonder.
“We had hoped for a slightly stronger reading but this is good enough, if replicated in the official employment numbers tomorrow, to keep the Fed on course to announce tapering later this month,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a research note.
Taper looks to still be on, but it remains a question of when. One has to wonder if the Federal Reserve would announce a move if the US is engaged in a conflict with Syria at the time. That may push the possibility of a September announcement off the table.
The chief tell will be the NFP report on Friday. Expectations are for a gain of 185,000. Will that be enough for the Fed to pull the trigger? Other data released today including the ISM numbers showed the employment gauges picking up. Still not quite the trend it needs for a substantial recovery, but it could give the Fed the cover it needs to start the scaling back of the QE program.
Stocks Moving in Late-Morning Trading
Prospect Global Resources, Inc. (NASDAQ:PGRX) is up 24.6% this morning at $2.68. Prospect Global announced yesterday an update to its drilling program. The company has successfully completed 7 drill holes so far. Three of the seven were “step-outs” aimed at expanding their resource base. Four of the in-fill holes have shown visible KR-2 seam potash and two of the three step out drill holes showed visible KR-2 seam potash.
Prospect Global also announced a reverse stock split yesterday at a 50 for 1 ratio.
Kaydon Corporation (NYSE:KDN) is up 22.9% today at $35.53. Kaydon Corp is up nearly 23% today after SKF Group said they would buy them for more than $1 billion. Under the acquisition agreement, SKF Group will pay $35.50 per share for Kaydon.
The deal has been approved by the boards from each company. It should close sometime in the fourth quarter, pending regulatory approval.
Local Corporation (NASDAQ:LOCM) is up 19% in early trading at $1.95. Local Corp is heading higher today after news came out they were providing location-based data to Microsoft. Microsoft will use this data to enhance local product search results in Bing.
Shares of Local Corporation spiked as high as $2.30 in early trading today.
MiMedx Group, Inc. (NASDAQ:MDXG) is up 18.2% today at $4.55. MiMedx will be holding a conference call later today to talk about the FDA’s “untitled letter” and reiterate their guidance. They will reiterate revenue guidance for 2013 and 2014.
Envivio, Inc. (NASDAQ:ENVI) is up 20.7% today at $3.38. Envivio announced their second quarter results yesterday. For the second quarter, Envivio reported revenue of $11.5 million, up from $7.5 million in the first quarter and up nearly $1 million from last year.
GAAP net loss came in at $0.09 per share, narrower than a $0.18 per share in the first quarter.
“In the second quarter, we began to see the fruits of our efforts to improve sales execution, particularly in North America,” said Julien Signes, President and CEO, Envivio. “We are encouraged by our results, which were principally driven by large orders from two tier 1 North American cable customers, one of which was a new customer.