News about corporate takeovers is making investors more optimistic about the economy and giving them new reasons to buy stocks.
Stocks rose early Tuesday as investors were encouraged by news from overseas. Deutsche Telekom AG and France Telecom SA said they plan to combine their British mobile phone units -- T-Mobile UK and Orange UK -- to form that country's biggest mobile operator.
And while Cadbury PLC rejected a takeover bid from Kraft Foods Inc., companies' reviving interest in making acquisitions is being seen as a welcome sign for the economy.
The increase in corporate takeover activity suggests an improvement in businesses' confidence and reinforces views that the worst of the global economic downturn could be over.
Still, many investors doubt that a strong recovery can be sustained over coming months, as unemployment continues to rise, putting pressure on households' spending.
A weekend pledge by the world's 20 biggest economies to support the global recovery with stimulus efforts is contributing to the a positive tone in the markets.
In midmorning trading, the Dow Jones industrial average rose 40.43, or 0.4 percent, to 9,481.70. The broader Standard & Poor's 500 index rose 6.32, or 0.6 percent, to 1,022.72, and the Nasdaq composite index rose 9.46, or 0.5 percent, to 2,028.24.
Today’s Top Performing Small Cap stock:
GWS Technologies, Inc., (OTC BB: GWSC) was a SmallCapVoice.com top performer closing up 10% on heavy trading volume so far this morning of 29,100 shares.
GWS stands for GreenWindSolar. We are a renewable energy technology company developing and marketing solar and wind-powered renewable energy products and solutions. Our products and solutions are part of the new micro-generation movement that is transforming the way businesses and consumers provide for their energy needs. The company was founded in 2005 and is headquartered in Scottsdale, Arizona.
Today’s SmallCapVoice.com Hot Stock to Watch:
Cobra Oil & Gas Company (OTC BB: CGCA)
Cobra Oil & Gas Company is pleased to notify an approval by the Obama administration for a pipeline to carry oil-sands fuel from Canada into the U.S., sending a positive economic signal in a difficult economic period. The pipeline will amass 1000 miles and is designed to carry up to 800,000 barrels of fuel a day from Canada’s vast oil sands.
Enbridge Energy will take on the building of the pipeline as the U.S. aims to diversify oil supplies coming into the country and increase crude oil supplies from a major non-Organization of Petroleum Exporting Countries producer while shortening the transportation path for crude oil supplies.
“As the United States looks for more diverse oil supplies for domestic use, the Oil Sands will consequently gain importance,” stated Max Pozzoni, Cobra’s President. “The enormous oil sands potential within North America will help diminish the reliance on overseas oil.”
Cobra is currently finalizing the purchase of 40% contract interest on 23 Federal Leases covering 33,632 acres within the P.R. Spring deposit in Uintah County, Utah. Adjacent to the Utah oil sands prospect, Cobra also acquired a 37.5% working interest covering 640 acres, along with a 62.5% working interest on 640 additional acres.
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