Stocks fell modestly in early trading after the ADP National Employment Report said employment fell by 298,000 in August following a revised loss of 360,000 jobs in July. It was the smallest drop since September 2008, but ADP said employment is likely to decline for at least several more months.
The ADP jobs report is a closely watched precursor to the Labor Department's crucial monthly reading on the jobs market, which is due Friday.
With the housing and manufacturing industries starting to show signs of healing, the biggest concern on Wall Street is layoffs. Job cuts have to slow for consumers to feel better about spending money, which the economy is depending on for a solid recovery.
The stock market was already on edge going in to Wednesday's session after a big sell-off the day before that took the major indexes down about 2 percent. Rumors of a major bank failure triggered the selling, adding to the growing anxiety on Wall Street that stocks are overvalued considering their run-up of more than 50 percent since March.
A separate report showing productivity rose at the fastest pace in nearly 6 years in the second quarter helped limit the market's decline.
In early trading, the Dow Jones industrial average fell 25.62, or 0.3 percent, to 9,284.98. The Standard & Poor's 500 index fell 3.68, or 0.4 percent, to 994.36, while the Nasdaq composite index fell 6.84, or 0.4 percent, to 1,962.05.
Yesterday’s Top Performing Small Cap stock:
Cobra Oil & Gas Co., (OTC BB: CGCA) was a SmallCapVoice.com top performer closing up 3% on trading volume of 3,101,000 shares.
An updated research report was issued yesterday on Cobra Oil & Gas Co. by Cohen Independent Research Group, Wall Street’s leading independent research firm, building off of July 21, 2009’s initial report. The latest report includes Cobra’s expansion of its Utah Oil Sands prospect and the addition of additional acreage, equating to a long-term price target of $4.42.
Today’s SmallCapVoice.com Hot Stock to Watch:
GWS Technologies, Inc. (OTC BB: GWSC)
GWS Technologies, Inc., an alternative energy company developing and marketing solar and wind-powered renewable energy products and solutions, today announced that it is working with Wind Pro Energy Systems in Circle, Montana to develop wind solutions throughout the state.
“We are very excited to be able to work with Wind Pro,” said Michael Coskun, Vice President of GWS Technologies, Inc. “Montana has terrific state and local incentives which will complement the current federal rebates, making this the perfect market to begin utility-scale installations and distribution.”
Last month a Harvard study found Montana to be the second windiest state in the nation, second only to Texas. According to state sources, Montana has developed wind energy faster than any other state in the nation over the last four years, with the goal of producing 20% of its electricity through wind energy by 2030. The state’s Energy Promotion and Development Division, created in 2007, is currently assisting and monitoring about 50 industrial wind energy projects of various sizes and stages of development with the potential to supply 4,000 megawatts of energy. New transmission lines are currently in the planning phase that would greatly increase the capacity of utility scale wind power. Globally, wind is the world's fastest-growing source of power generation with an average annual growth of 29% over the last ten years.
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