Investors are examining earnings reports from retailers, looking for signs of strength in consumers. A report showing a rebound in retail sales helped push major indexes higher on Monday.
Consumer spending accounts for about 70 percent of all economic activity in the nation, and a rebound in spending -- especially during the holiday season -- is necessary for a strong economic recovery.
Home Depot Inc., Saks Inc. and Target Corp. all reported better-than-expected third-quarter results Tuesday morning, but say they remain cautious of a potential rebound and ahead of the key upcoming holiday season.
Fed chairman Ben Bernanke reiterated Monday that an economic recovery is likely to be only moderate. He also said the pace of the recovery will keep unemployment from declining quickly. Consumers' anxiety about their job security has been the primary factor behind their modest spending.
Traders received a disappointing report on industrial production. The Fed said production at the nation's factories, mines and utilities rose 0.1 percent, less than the 0.4 percent predicted by economists polled by Thomson Reuters.
In morning trading, Dow Jones industrial average fell 15.04, or 0.1 percent, to 10,391.92. The Standard & Poor's 500 index declined 2.79, or 0.3 percent, to 1,106.51, while the Nasdaq composite index fell 6.30, or 0.3 percent, to 2,191.55.
Yesterday’s Top Performing Small Cap stock:
Rival Technologies Inc. (OTC BB: RVTI) was a SmallCapVoice.com top performer yesterday closing up over 14% on trading volume of 315,225 shares.
Rival Technologies Inc. announced yesterday that through our Colombian business partner, we are working towards commercialization of our proprietary heavy oil upgrading process with the largest Colombian oil company, Ecopetrol (USD $54 billion market cap.).
Previously announced technical due diligence completed by Ecopetrol has moved discussions towards completing a contractual arrangement for the purchase of a continuous feed pilot plant utilizing the TRU(R) technology. The contract will put the TRU(R) process at the forefront of an initiative to achieve increased production goals. Negotiations are expected to conclude with a contractual agreement soon.
Today’s SmallCapVoice.com Hot Stocks to Watch:
Lucas Energy, Inc. (AMEX: LEI)
Lucas Energy, Inc. (NYSE Amex:LEI), an independent oil and gas company based in Houston, Texas reports the financial results from operations for second quarter of fiscal year 2009-2010.
Mr. William Sawyer, CEO of Lucas Energy said, "We are happy to announce the return to positive EBITDA for the fiscal second quarter. The current quarter returns this trend to positive EBITDA and positive cash flow from operations and we are seeing higher production and strong oil prices. This combined with our focus on keeping lease operating expenses down will result in an even better third quarter. Our joint interest drilling program is in full swing and we are looking forward to the rest of the 2009-10 fiscal year with forecasted increased volumes and increased profitability ongoing."
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