WESTON, Fla., June 29, 2004 (PRIMEZONE) -- Investors continue to bid up stocks even as the Federal Reserve convenes its two-day meeting to decide the future of interest rates this afternoon. Equities are still climbing their way off the lows of the last two months, consolidating the gains they have forged over the past year and a half. But continuing concerns over the situation in the Middle East and Iraq continued to weigh on investors. The Nasdaq Composite was up 12.28 points, to 2,032.43, while the Dow Jones industrial average was higher by 35.42 points, to 10,392.87.
Crude oil futures eased back below $42 per barrel in the past couple of weeks, after scaring analysts into thinking they might pop above $45. The price of crude oil rose after the U.S.-appointed head of the Iraqi Governing Council, Ezzedine Salim, was killed near the U.S. headquarters in Baghdad, and with continued troubles in the U.S.'s efforts in Iraq. Also damaging investor confidence were Commerce Department figures showing the U.S. trade deficit recently widened by 9.1 percent to a record $46 billion, much higher than what analysts were expecting.
Stocks on the move include Catalyst International, Inc. (OTCBB:CLYS), a global provider of customer-driven software and services that optimize the enterprise supply chain, which announced that it has signed an agreement with ComVest Investment Partners ("ComVest"), an institutional investment firm, which will result in the acquisition of all outstanding shares of Catalyst.
Air T, Inc. (Nasdaq:AIRT) which recently reported consolidated net earnings of $1,738,000 ($0.64 per diluted share) for fiscal 2004, which ended March 31, 2004, compared to a consolidated net loss of $1,224,000 (($0.45) per diluted share) for fiscal 2003. Fiscal 2004's net earnings was comprised of $2,164,000 ($0.80 per diluted share) in earnings from continuing operations, offset by a $426,000 (($0.16) per diluted share) loss from discontinued operations.
Euro Tech Holdings Company Limited (Nasdaq:CLWT) which reported financial results for the 12-month period ended December 31, 2003 and announced a stock dividend to the holders of its Ordinary Shares.
And Trico Marine Services, Inc. (Nasdaq:TMAR) which announced that the Company has reached an agreement with General Electric Capital Corporation ("GECC") to provide $1.7 million in cash in lieu of letters of credit to secure the payment and performance pursuant to its master bareboat charter agreement with GECC dated September 30, 2002.
The previous Federal Open Market Committee meeting was held on Tuesday, May 4, 2004, where the FOMC changed its tune somewhat, saying in its statement that "The Committee perceives the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal," the FOMC said in its statement. "Similarly, the risks to the goal of price stability have moved into balance. At this juncture, with inflation low and resource use slack, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured."
In plain terms The Fed is saying that conditions have improved to the point that rates can start moving up from their current historically low levels, but will probably do so at a measured, and even pace . . . no 50 and 75 basis point hikes in the near future. The Fed also said it "continues to believe that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity." Regardless, many analysts are saying the first rate increase may come as early as June.
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