Bank technology stocks were mixed last week, despite the market's rebound amid a lack of immediate inflation concerns.
The market reversed course Friday after stumbling earlier in the week. The Labor Department's producer price index, released Friday, showed a modest, lower-than-expected rise of 0.2% in September.
The Commerce Department also weighed in with data on September retail sales, which rose 0.7% versus the 0.3% economists had expected.
Experts said the price and sales reports eased concerns that a hike in interest rates could be imminent.
Beth Marino, economic research analyst at Huntington Bancshares, commented, "Investors seemed to like both numbers that came out" Friday. But uncertainty is "still lingering in the market," she said, especially with the September consumer price index due out Wednesday.
The Dow Jones industrial average recovered 47.71 points Friday, to close at 5,969.38, off 23.48 points for the week. The Nasdaq composite index, which incorporates many technology firms, edged up 0.72 point, to close at 1,248.28.
Transaction Network Services Inc., Herndon, Va., which supplies network services for financial transactions, reported third-quarter income of $1.9 million, or 15 cents a share. That was short of Wall Street's consensus estimate of 17 cents.
John J. McDonnell Jr., president and chief executive officer, attributed the shortfall to First USA Paymentech's purchase of Gensar Holdings Inc. in August. Both companies are customers of Transaction Network Services.
A clause in Paymentech's credit card processing contract extended its more favorable processing charges to Gensar's volume, he said.
"We've been banged to the tune of about $300,000, top and bottom line," Mr. McDonnell said. "We had no clue Gensar was on the market."
On the other hand, he said, Transaction Network Services' contract with First Data Corp., the biggest processor in the card market, "is still strong" and assures "built-in growth." Securities analysts revised their estimates of the company's earnings.
Transaction Network Services' stock price was up 87.5 cents for the week, to $14.50.
Total System Services Inc., the credit card processing unit of Synovus Financial Corp., said third-quarter net income rose more than 53%, to $11.3 million. At nine cents a share, it exceeded consensus estimates by a penny. The Columbus, Ga.-based company's stock ended the week at $29.375, up 62.5 cents.
Pegasystems Inc., Cambridge, Mass., continued its meteoric rise since going public in July. The company, which sells customer service software for banks and mutual funds, has seen its stock price climb an average of 17% a week since early September.
"Investors have a very good feeling about the future of the company's revenues and growth," said Robert Austrian, an analyst at Montgomery Securities, San Francisco.
The shares closed Friday at $33.625, a 171% increase since the initial public offering at $12.375.