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

The Labor Department said new claims for jobless benefits rose more than expected to 551,000, evidence that the labor market is struggling and jobs remain scarce. Economists polled by Thomson Reuters had predicted claims to rise to 535,000.

The increase comes after three weeks of declines, and just before the Labor Department's September unemployment report. Economists forecast that report will show the unemployment rate rose to 9.8 percent from 9.7 percent in August. Most economists expect the rate to top 10 percent by early next year.

Meanwhile, the Commerce Department said consumer spending surged by the largest amount in nearly eight years in August, as personal income growth lagged. Even so, economists worry whether that rebound can be sustained with U.S. households facing rising unemployment and tight credit conditions.

The Institute for Supply Management says its index of manufacturing activity in September slipped to 52.6 from 52.9 in August. The index was forecast to come in at 54. Readings above 50 mean the sector is expanding.

The worse-than-expected report is overshadowing a better reading on housing. The National Association of Realtors says pending home sales in August rose 6.4 percent from July to 103.8. Economists surveyed by Thomson Reuters expected the index would rise to 98.6.

The Dow Jones industrials are down 119 at 9,592, after being down about 65 points prior to the data. The Standard & Poor's 500 index is down 13 at 1,043, and the Nasdaq composite index is down 33 at 2,088.

Yesterday’s Top Performing Small Cap stock:

On4 Communications Inc. (OTC BB: ONCI) was a SmallCapVoice.com top performer yesterday closing up over % on trading volume of  shares.

On4 Communications Inc. announced that it has entered into negotiations for the acquisition of www.pets911.com. Pets911.com is an industry leading website focused on the retrieval of lost pets, pet adoption and all aspects of pet welfare. Adding Pets911.com to On4's current lineup of pet location and rescue products will be a significant addition and help position On4 as a leader in the industry.

Today’s SmallCapVoice.com Hot Stock to Watch:

Muscle Flex, Inc. (Pink Sheets: MFLI)

Muscle Flex Inc. announced today that it will produce and air a 2 minute direct response commercial for its Muscle Flex VATA Brasil(TM) Sports & Active Wear Collection (www.MuscleFlexVATA.com) ahead of its 30 minute TV program. Muscle Flex expects to launch the Muscle Flex VATA Brasil(TM) Collection in October 2009 and the Exclusive Muscle Flex Premiere(TM) Collection by VATA Brasil(TM) early in the New Year. The Muscle Flex VATA Brasil 2 minute commercial will be a "drive to the internet" strategy that is intended to initiate substantial ecommerce revenue as well as introduce the sassy, sexy and exciting styles of this one-of-a-kind active wear collection. The Muscle Flex VATA Brasil 2 minute commercial will be aired in cities where the BUDDY Tablet Caddy(TM) and the Beagle StepFit(TM) have already established significant Muscle Flex brand awareness and loyalty to enhance revenue and website traffic numbers.

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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.

Small Cap Voice SCV is an electronic publication, and is for informational purposes only. The stocks profiled by SCV are only company profiles and are not intended to be and should not be accepted by you as recommendations to buy or sell in these securities. These profiles are compiled from publicly available sources. Our sources include, but are not limited to, online research, company profiles, member suggestions, magazines, newspapers, analyst suggestions, broker recommendations, contact with the company, company rumors, press releases and other similar information sources. All profiles are based on information that is accessible by the public. Investing in stocks involves risk. SCV is not and does not hold itself out to be a registered broker or dealer or other licensed securities professional. You should consult a qualified, licensed financial advisor or stock broker before making any decisions to invest in the securities of any company that is described in these profiles.  For compensation and complete disclaimer click here.

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