Modest Gains For Markets Despite Disappointing Data

The markets closed modestly higher with the Dow gaining 40 points to 8018 despite another contraction in the services industry and a slight gain in the unemployment rate.  Nasdaq climbed 19 points to 1622.

On the upside

The American Urological Association has reserved a spot on its annual conference program for Dendreon (Nasdaq: DNDN) to present data from a late stage clinical trial of its prostate cancer treatment Provenge.

Shares of Cubist Pharmaceuticals (Nasdaq: CBST) surged over rumors that Novartis (NYSE: NVS) may be interested in acquiring the company.

Global research firm Lipper awarded three of Principal Financial Group's (NYSE: PFG) funds the prestigious Lipper Fund Award for outstanding multi-year performance.

Citigroup analyst Tereza Mello said that Brazilian sugar producer Cosan (NYSE: CZZ) will benefit from higher sugar prices and a weak local currency. 

Assured Guaranty (NYSE: AGO) announced that the company has insured 36% more public finance new issue transactions than in the first quarter of this year than last year.

On the downside

Aehr Test Systems (Nasdaq: AEHR) blamed hefty charges for swinging to a significant third quarter loss.

In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by nearly 8 to 5 on Nasdaq.  The Russell 2000 which tracks small cap stocks gained 6 points to 456.