Mr. Market looks hesitant this morning, following a slew of mixed second-quarter reports. While McDonald’s (NYSE:MCD) and General Electric (NYSE:GE) announced better-than-expected results, Microsoft (NASDAQ:MSFT) and Caterpillar (NYSE:CAT) came out with disappointing numbers. Since Caterpillar was the best performing stock on the Dow in 2010, investors now look to the company to indicate overall economic health. On perceived economic sluggishness, a number of transport stocks are dipping to 52-week lows, including Diana Shipping Inc. (NYSE:DSX), Covenant Transport (NASDAQ:CVTI), and US Airways Group (NYSE:LCC).
However, hope that a Greek debt settlement will stop the European debt contagion, and news that the U.S. is close to reaching an agreement on its debt situation, has helped bullish sentiment. As a result, a number of stocks, especially small-caps, are hitting 52-week highs, including DGSE Companies (NYSE:DGSE) and Team Staff (NASDAQ:TSTF).
A full synopsis is given below.
Stocks hitting 52-week highs
DGSE Companies (NYSE:DGSE): The gold, jewelry and rare coin seller is shining about 5% brighter this morning. As gold tests a record high, near $1,600, the high momentum small-cap stock has been receiving recent media attention, helping boost the stock price.
Team Staff (NASDAQ:TSTF): The small-cap staffing services provider for U.S. government departments received a 6% boost this morning after recently announcing three significant government contracts that will likely improve future revenues.
Acacia Research Corp. (NASDAQ:ACTG): The patent acquirer, licenser and enforcer has gained about 7% in trading this morning after reporting upbeat second-quarter results. Due to an increase in patent royalties and licensing fees, revenue hit a record high of $39.7 million, compared to $15 million in the year-ago period. Earnings turned positive, reaching 5 cents per share, compared to a loss of -12 cents per share in the comparable year-ago quarter.
Stocks hitting 52-week lows
Diana Shipping Inc. (NYSE:DSX): The Greek-based dry bulk shipping carrier has sunk about -4% so far this morning following a Bloomberg report that Clarkson Capital Markets cut tanker and commodity shipping earnings estimates by 19%.
Covenant Transport (Nasdaq:CVTI): The U.S.-based truck hauling company has taken a -2% hit this morning. Trucking companies have lagged the market this week. It is possible traders are selling the stock in anticipation of weak earnings. The company is due to report second-quarter results at the market’s close on Tuesday, July 26.
US Airways Group (NYSE:LCC): The international passenger and cargo air carrier has dropped about -2% in morning trading, following mixed second-quarter results. Although revenue increased 10.4% from the year-ago quarter, net income nose-dived 67% year-over-year, due to higher fuel costs.
As of this writing, Deborah O’Malley did not own a position in any of the stocks named here.
