Stocks drifted lower early Thursday as news of an improving job market failed to offset the market's disappointment over sales at Wal-Mart Stores Inc.
The Labor Department said new claims for unemployment insurance fell to a seasonally adjusted 502,000 from an upwardly revised 514,000 the previous week. That's the fewest claims since the week ending Jan. 3, and below economists' estimates.
The news is evidence the job market is slowly healing.
But investors are more concerned by Wal-Mart's lower than expected third-quarter sales, a sign of weak consumer spending.
While the nation's biggest retailer reported third-quarter earnings that beat analysts' expectations, it said sales at stores open at least a year dropped during the quarter. Wal-Mart also said sales at existing stores would range from a drop of 1 percent to a gain of 1 percent in its fourth quarter, a disappointment for investors. Sales at stores open at least a year are an important indicator of a retailer's strength.
Because of its size, Wal-Mart is seen as a key indicator of consumer spending trends. Investors are concerned about consumers' ability to lift the economy into a strong recovery.
Meanwhile, Kohl's Corp. said higher sales helped third-quarter profit rise 21 percent.
In early trading, the Dow Jones industrial average fell 15.27, or 0.2 percent, to 10,275.99. The broader Standard & Poor's 500 index fell 3.42, or 0.3 percent, to 1,095.09, and the Nasdaq composite index fell 2.15, or 0.1 percent, to 2,164.75.
Yesterday’s Top Performing Small Cap stock:
PowerVerde, Inc. (OTC BB: PWVI) was a SmallCapVoice.com top performer yesterday closing up over 30% on trading volume 33,628 of shares.
PowerVerde, Inc., a leading manufacturer of high performance pressure and gas expansion products, today announced the successful test of its new Organic Rankine Cycle (“ORC”), the PowerVerde 25/50 KW electric power system. The new system, a next generation design, is capable of producing 25 kilowatts of electrical power on any low grade heat (180 degree F). This test was conducted at the company’s facility, Arizona Research and Development, last Wednesday. This renewable energy heat recovery power generation system will operate on any adequate heat source. The system was designed principally for solar, geothermal, biomass, or waste heat, the latter of which can be captured from manufacturing processes or fossil fuel driven motors.
Today’s SmallCapVoice.com Hot Stocks to Watch:
Vivakor, Inc. (OTC BB: VIVK)
Vivakor, Inc. today announced it has completed an exclusive distribution agreement with consumer product specialist, Regeneca International, Inc. (www.regeneca.com) for one of its proprietary, cutting-edge nutraceutical formulations. In conjunction with this agreement was an immediate purchase order from Regeneca for 25,000 units of the product. Both companies hope this agreement initiates a long term relationship for product commercialization. This purchase also represents to another substantial revenue stream for Vivakor’s emerging nutraceutical division. Vivakor CEO Tannin Fuja expressed his enthusiasm for the transaction. “We are very excited for the possibilities of Vivakor’s line of nutraceutical products. Worldwide demand for nutraceutical products is expected to exceed $15 billion and Vivakor plans on being a substantial player in that market.”
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