NEW YORK, July 23 (Reuters) - Mid- and small-cap stocks rose on Friday as better-than-expected corporate earnings continued to support the market.
Align Technology Inc rose 15.4 percent after the orthodontic product maker posted quarterly results that beat estimates and forecast a sunny outlook for the third quarter.
Shares in Riverbed Technology Inc rose 14.1 percent and touched a year high after growth in product revenue boosted its earnings. It also guided its third quarter above Wall Street's view.
Terry Morris, a fund manager at National Penn Investors Trust Company in Reading, Pennsylvania, said earnings above expectations were welcome but said there were still many companies boosting the bottom line by cutting costs.
'The theme is the same whether it's small mid or large -- companies seem to be continuing to meet or exceed expectations but through cost-cutting rather than top line growth, although I think it's improving,' he said.
The S&P MidCap 400 index rose 1.5 percent while the S&P SmallCap 600 index advanced 2.1 percent. In comparison, the benchmark S&P 500 gained 0.8 percent.
Acquisitions also helped stocks. Shares of oil and gas explorer Quicksilver Resources Inc rose 2.9 percent to $13.12 a day after the company agreed to sell its limited partnership in a deal that will help reduce its debt.
However, there were also some misses. Qlogic Corp fell 16.4 percent to $15.76 after the network equipment maker posted a first-quarter profit that beat analysts' expectations by a cent, but revenue trailed Wall Street's forecast.
Rosetta Stone, the language software provider, fell 14.3 percent to $21.86 after it forecast weak second-quarter sales, hurt by a slower-than-expected U.S. consumer business.
Shares of Lender Processing Services Inc fell 6.7 percent to $31.99. The company posted an in-line quarterly profit but forecast third-quarter profit below analysts' expectations and cut 2010 revenue outlook.
(Reporting by Edward Krudy; Editing by Dan Grebler) Keywords: MARKETS STOCKS/SMALLMID (edward.krudy@thomsonreuters.com; Tel: +1 646-223-6314; Reuters Messaging: edward.krudy@reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Align Technology Inc rose 15.4 percent after the orthodontic product maker posted quarterly results that beat estimates and forecast a sunny outlook for the third quarter.
Shares in Riverbed Technology Inc rose 14.1 percent and touched a year high after growth in product revenue boosted its earnings. It also guided its third quarter above Wall Street's view.
Terry Morris, a fund manager at National Penn Investors Trust Company in Reading, Pennsylvania, said earnings above expectations were welcome but said there were still many companies boosting the bottom line by cutting costs.
'The theme is the same whether it's small mid or large -- companies seem to be continuing to meet or exceed expectations but through cost-cutting rather than top line growth, although I think it's improving,' he said.
The S&P MidCap 400 index rose 1.5 percent while the S&P SmallCap 600 index advanced 2.1 percent. In comparison, the benchmark S&P 500 gained 0.8 percent.
Acquisitions also helped stocks. Shares of oil and gas explorer Quicksilver Resources Inc rose 2.9 percent to $13.12 a day after the company agreed to sell its limited partnership in a deal that will help reduce its debt.
However, there were also some misses. Qlogic Corp fell 16.4 percent to $15.76 after the network equipment maker posted a first-quarter profit that beat analysts' expectations by a cent, but revenue trailed Wall Street's forecast.
Rosetta Stone, the language software provider, fell 14.3 percent to $21.86 after it forecast weak second-quarter sales, hurt by a slower-than-expected U.S. consumer business.
Shares of Lender Processing Services Inc fell 6.7 percent to $31.99. The company posted an in-line quarterly profit but forecast third-quarter profit below analysts' expectations and cut 2010 revenue outlook.
(Reporting by Edward Krudy; Editing by Dan Grebler) Keywords: MARKETS STOCKS/SMALLMID (edward.krudy@thomsonreuters.com; Tel: +1 646-223-6314; Reuters Messaging: edward.krudy@reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.