Stocks sold off broadly Monday after China's main index plunged 6.7 percent, adding to a nearly 3 percent drop on Friday. The selling of Chinese shares has been fed by concerns over a tightening in bank lending that could hurt the country's economy. That in turn has weighed on markets around the globe this month. Markets in Japan and Europe were also lower.
There was little U.S. economic news expected Monday, but key readings come later this week on manufacturing and employment in August that have the ability to either sustain or upset the market's massive six-month rally.
After rising more than 45 percent from 12-year lows in March, the Dow Jones industrial average stands about 500 points away from 10,000. Investors have grown increasingly worried that the market may have gotten too far ahead of the economy. Without evidence of actual economic growth, analysts have warned that the market's rally could fizzle in the coming weeks, especially as traders head into September, historically a rough month for the stock market.
"There's enough jitteriness to set the stage for a decline," said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors. "The economic numbers could neutralize the nervousness, could put portfolio managers' worries to rest."
Two big deals between The Walt Disney Co. and Marvel Entertainment Inc. and oilfield services companies Baker Hughes Inc. and BJ Services Co. did little to support the market.
In late morning trading, the Dow Jones industrial average fell 74.22, or 0.8 percent, to 9,469.98. The Standard & Poor's 500 index fell 9.58, or 0.9 percent, to 1,019.35, while the Nasdaq composite index fell 19.90, or 1.0 percent, to 2,008.87.
Yesterday’s Top Performing Small Cap stock:
Green Star Alternative Energy, Inc. (Pink Sheets: GSAE) was a SmallCapVoice.com top performer closing up over 20% on trading volume of 122,175 shares.
A New Audio Interview with Mike Andric, CEO of Green Star Alternative Energy, Inc., is now at SmallCapVoice.com. The interview can be heard at http://smallcapvoice.com/blog/8-26-09-audio-interview-with-green-star-alternative-energy-inc-otcpk-gsae/
Today’s SmallCapVoice.com Hot Stock to Watch:
HearAtLast Holdings, Inc. (Pink Sheets: 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 the exclusive offering of the "The QSound EarBud" throughout its Hearing Store Clinics located across Canada.
The new QSound is based on the same miniature in ear platform as the Q Exsilent Hearing Aid, the worlds smallest Programmable Assistive Listening Device or CIC Hearing Aid, both available exclusively through HearAtLast in Canada.
"The Addition of the QSound to our EarBud offering is in response to a multitude of concerned iPod/MP3 wearers who want hi-fidelity at an affordable price only $99.00 per pair, without over amplification that tends to lead towards long-term hearing loss," states Matthew Sacco, President and CEO of HearAtLast Holdings, Inc.
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