Austin, TX 9/23/2009 11:34:35 PM
News / Business

Daily Small Cap Market News and Stock Highlights from SmallCapVoice.com

Stocks are little changed as investors await Fed decision

Investors are waiting for word from the Federal Reserve before making any big moves in stocks.

 

Major market indicators barely budged early Wednesday, holding steady at their highest levels in 11 months. The Dow Jones industrial average is less than 200 points away from 10,000, a mark it hasn't been above since October.

 

The U.S. central bank is expected to keep its benchmark interest rate at a record low of near zero, but investors are hoping for a clearer indication of when the Fed may raise rates in the future. Investors will also be looking for more clues about the strength of the economy's recovery in the statement to be released at the conclusion of the Fed's two-day policy meeting Wednesday afternoon.

 

Low interest rates have helped spur the nearly seven-month rally in stocks, weakening the dollar and providing the market with access to cheap financing for investments. The obstacle the Fed faces is determining the appropriate time to raise rates and exit some of its stimulus programs. If the government hikes rates too soon, it risks upsetting the recovery. Rates left low for too long, however, could lead to inflation down the road.

 

With all the major market indicators up more than 50 percent since early March, investors are worried that stocks have become overvalued, especially with the strength of the economy's recovery still in question.

 

Despite investors' doubts, breaks in the stock market's rally have been few and brief. With so much cash in the system, and so many investors still underinvested, money keeps flowing into the market.

 

In morning trading, the Dow dipped 7.25, or 0.1 percent, to 9,822.62. The Standard & Poor's 500 index fell 0.80, or 0.1 percent, to 1,070.86, while the Nasdaq composite index added 0.50, or 0.02 percent, to 2,146.80.

 

Yesterday’s Top Performing Small Cap stock:

 

The Wyncrest Group, Inc. (Pink Sheets: WNCG) was a SmallCapVoice.com top performer yesterday closing up over5 % on trading volume of 1,625,264 shares.

 

The Wyncrest Group, Inc. recently announced that it expects commissions earned from the sales of insurance and other financial products by its Dallas-based realtor and financial services target acquisition will be $5 million in 2009. During 2008, it generated gross premium sales of $15 million, resulting in $100,000 of EBITDA. Keith Lanzara, President of Wyncrest, commented, "We believe this piece of the puzzle complements our existing business lines well, and further helps to broaden our geographical and product offering diversity with the addition of nearly two dozen new sales representatives to our team."

 

Today’s SmallCapVoice.com Hot Stock to Watch:

 

U.S. Geothermal, Inc. (AMEX: HTM)

 

U.S. Geothermal, Inc. CEO Daniel Kunz was interviewed by The Wall Street Transcript.

 

The Wall Street Transcript has just published its Alternative Energy/Clean Energy/Power Generation/Utilities Report report offering a timely review of the sector to serious investors and industry executives. This 83 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers.

 

About SmallCapVoice.com

 

SmallCapVoice.com is a recognized corporate investor relations firm, with clients nationwide.  Known for its ability to help emerging growth companies build a following among retail and institutional investors, SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its client's financial news releases. SmallCapVoice.com also offers individual investors with all the tools they need to make informed decisions about the stocks they are interested in. Tools like our stock charts, stock alerts, and our investor fact sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets.

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