Investors dumped stocks and sought safe-haven assets like the dollar and Treasurys following signs that the global economy is still struggling.
Reports in Britain and Germany showed that manufacturing remains weak, while Japan's government approved $81 billion in stimulus measures to keep its economy out of recession. Meanwhile, a leading credit rating agency has cut its ratings on six Dubai state-linked companies due to worries about their growing debts.
A disappointing earnings forecast from Dow Jones industrials component 3M Co. and a weak sales report from McDonald's Corp., another Dow company, also pulled stocks lower.
Investors sent the dollar and Treasury prices higher in response to the day's news. Commodities fell as the dollar rose. A stronger dollar makes commodities more expensive for buyers overseas, and also hurts profits at companies that have large international operations.
After the massive rally in stocks and commodities this year, investors are looking for clues about where the economy is headed and how best to position their portfolios for next year. Investors are uncertain of how long the environment of low interest rates and a weak dollar that helped fuel the market's rally will last.
At the same time, there are still plenty of doubts about the economic recovery to drive cautious investors to pad their portfolios with safe havens. With the Standard & Poor's 500 index up 63.1 percent since early March, many investors are looking to protect their gains.
In midmorning trading, the Dow fell 108.15, or 1 percent, to 10,281.96. The Standard & Poor's 500 index fell 10.77, or 1 percent, to 1,092.48, while the Nasdaq composite index fell 20.66, or 0.9 percent, to 2,168.95.
Yesterday’s Top Performing Small Cap stock:
Biomedical Technology Solutions Holdings, Inc. (OTC BB: BMTL) was a SmallCapVoice.com top performer yesterday closing up over 13% on trading volume of 344,717 shares.
Biomedical Technology Solutions Holdings, Inc., located in Englewood, Colorado sells the Demolizer II through its wholly owned subsidiary Biomedical Technology Solutions, Inc. BMTS' patented Demolizer Technology converts infectious biomedical waste into non-infectious material. BMTS' products provide biomedical waste treatment solutions for the over 1,000,000 low to medium volume medical waste generators in the US and a global market five times larger than the US.
Today’s SmallCapVoice.com Hot Stock to Watch:
GWS Technologies, Inc. (OTC BB: GWSC)
GWS Technologies, Inc., an alternative energy company developing renewable energy solutions, announced today that it will begin accepting orders for their own proprietary solar panels beginning January 1, 2010.
"Our new panels are efficient and set at very competitive price points," said GWS Technologies, Vice President, Michael Coskun. "Our panels will be guaranteed to have 90% power output assurance for 10 years, and 80% power output assurance for 25 years," Mr. Coskun added.
GWS Technologies will offer two different panels to start, with more to follow in the early spring. The first panel is a 220 watt Monocrystalline panel and the second a 180 watt Monocrystalline panel, both of which will be UL listed and TUV certified. The panels will also include a 25 year warranty on power output and a 5 year warranty on the panel itself.
The panels are exceptionally lightweight with an aluminum frame designed for ease of installation. Global demand for solar panels is growing at about 50 percent per annum, according to industry sources, with government programs in Germany, Japan, and the United States accelerating the demand.
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