Stocks turned lower in early trading Thursday as disappointing reports on jobs and retail sales deflated some of investors' optimism about the economy.
Investors sent the major indexes slightly higher at the opening, but stocks failed to hold on to the gains and extend Wednesday's big rally, which followed upbeat comments from the Federal Reserve.
Falling retail sales put a damper on hopes the recession will end sooner rather than later. The Commerce Department said retail sales fell 0.1 percent in July, significantly worse than the 0.7 percent increase that was expected by economists polled by Thomson Reuters.
Results would have been even worse had it not been for a boost in auto sales thanks to the Cash for Clunkers autos trade-in program. Excluding autos, retail sales fell 0.6 percent, compared with expectations for a gain of 0.1 percent.
Retail sales are considered a strong indicator of economic recovery because consumer spending accounts for more than two-thirds of all economic activity.
A weekly report on unemployment also came in worse than projected.
The Labor Department said the number of newly laid-off workers filing claims for unemployment benefits rose unexpectedly to a seasonally adjusted 558,000, from 554,000 the previous week. Analysts were expecting new claims to drop to 545,000.
In early trading, the Dow Jones industrial average fell 50.26, or 0.5 percent, to 9,311.35. The Standard & Poor's 500 index fell 4.57, or 0.5 percent, to 1,001.24, while the Nasdaq composite index fell 11.49, or 0.6 percent, to 1,987.23.
Yesterday’s Top Performing Small Cap stock:
Sunergy, Inc. (OTC BB: SNEY) was a SmallCapVoice.com top performer closing up over 6% on trading volume of 70,700 shares.
Sunergy, Inc reports the following update on the planning and preparation for operations on our 150 sq. km. Nyinahin mining concession, located in Ghana, West Africa. During Q'4 2009 we plan to test and evaluate the alluvial gold recovery potential along the Ofin River which runs through the eastern portion of the concession for about 45 km. We plan to do this by bulk sampling the numerous existing artisan pits along the river on our concession. Our planned budget is around $300,000.00 US which could recover an estimated 1,000 oz./gold generating around $900,000.00 of revenue from the program. Our plan involves either leasing a suitable gold recovery plant or joint venturing with another operator with suitable equipment. The permitting for the operation will commence shortly.
Sunergy is an aggressive junior mining exploration and development Company that is production oriented at the earliest possible profitable opportunity. We control 100% of the 150 SQ. Km. Nyinahin mining concession with a full prospecting license. The concession is surrounded by several operating mines and is adjacent to Newmont Mining's property. This concession has the Ofin river flowing through our eastern portion and there are numerous artisan pits ready for testing and evaluation for near term production. The Ofin river is known for good alluvial gold production. Artisans usually recover about 30% of the available gold through primitive hand methods, leaving 60-70% to be recovered by modern mechanical operations.
Today’s SmallCapVoice.com Hot Stock to Watch:
HearAtLast Holdings, Inc. (OTC BB: HRAL)
HearAtLast Holdings, Inc., a leading provider of suitable affordable solutions to clients with hearing needs in the billion dollar hearing loss market, announced today financial results for the Fiscal Year ended March 31, 2009.
Total revenues for the year ended March 31, 2009 increased 77% to $2.42 million, compared to $1.36 million for the previous year. Gross margin was 57.58% for the latest year, down from 58.71% from the same period in 2008.
In spite of the substantial increase in revenues for the latest fiscal year, this was below the Company's potential revenue and profitability targets, mainly due to the fact that only 17% of the Hearing Stores opened, are just approaching 2.5 years of operation. HearAtLast is still in their growth stage and the majority of these locations are not yet considered to be operating as mature or seasoned stores. There are currently 5 Hearing Stores that we consider to be termed as 'seasoned locations,' representing only 17% of the total stores operating. However, these Clinics contributed approximately 33% of the total revenue for the year ended March 31, 2009. The remaining HearAtLast locations are maturing at the projected pace and are expected to contribute to the overall revenues at a similar rate.
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