The markets have slowly tried to gain momentum this morning to no avail. The Dow is currently down 56 points while the S&P 500 is down 2.8 points. The Nasdaq is the only index of the big three showing gains and those gains are a meager 2 points. This is the second day in a row where the markets have failed to gain any ground amid the deadlocked talks surrounding the nations debt ceiling. While many may feel that some sort of compromise will be reached before the dreaded August 2nd deadline, the larger concern facing economist is whether the nations credit ratings will be affected by the solution. And while the debt ceiling is the immediate problem the long term one is this nations credit rating. If by chance our country’s credit rating is dropped interest rates will increase causing costs throughout the country to skyrocket. This scenario is one that could cause a major economic downturn. While there is plenty of negativity to focus on there is a group of stocks that are posting strong gains lets look at those companies.
Pinnacle Data Systems Inc. (AMEX:PNS) shares have more than doubled today climbing 112% to $2.93 per share with an intraday high of $3.33 per share. Volume is also up with nearly 2.7 million shares traded on news that PNS has entered into an OEM agreement with IBM (NYSE:IBM). The agreement provides PNS with the ability to design, manufacture, and sell products based on IBM’s System’s (x) and (p) technologies.This will allow PDSi to utilize IBM’s technology across several target markets including telecommunications and medical markets.
S1 Corporation (Nasdaq:SONE) shares are up this morning 31% to $9.38 per share. Volume is extremely high with nearly 22 million shares traded on news that ACI Worldwide (Nasdaq:ACIW) has offered to buy S1 Corp for $540 million in cash and stock shares. ACIW offered $9.50 per share for SONE stock a 33% premium over the previous close. The proposal includes a clause allowing S1 share holders to receive cash or stock for their shares.
Radioshack Corporation (NYSE:RSH) shares have risen this morning 22.5% to $16.03 per share. Volume is trading four time more than normal on news that the electronics retailer will begin to offer Verizon wireless services at retail outlets. While picking up the sale of Verizon Wireless products Radioshack plans on dropping T-Moblie USA products from its retail chains. Verizon Communications is currently the second-largest U.S. phone company. This announcement trumps the previous announcement that RSH missed its estimate for the second quarter.