The dip in stocks followed a sharp sell-off Tuesday that carried over into Asia overnight as concerns about foreign debt loads escalated and Japan said its economy grew at a lower rate than originally expected in the third quarter.
A weaker dollar, however, helped put some support under stocks. The dollar retreated after rising the day before to its highest level against the euro since early November.
The dollar has fallen steadily since March as investors take advantage of cheap financing to invest in riskier, higher-yielding assets like stocks and commodities. But in recent weeks, investors have been shuttling between stocks and the dollar as they try to determine the strength of the economic recovery and where they will be able to make the biggest returns.
While investors want to see the economy grow, they also know that the Federal Reserve could raise interest rates and remove its stimulus measures once the economy appears to be on solid footing. Higher rates could make stocks look less appealing as returns for other investments improve, potentially upsetting a nine-month advance in stocks that has lifted the Standard & Poor's 500 index up 61.4 percent.
On Tuesday, investors bought safe havens like the dollar and Treasurys and sold stocks after Moody's Investor Service, a major rating agency, warned that the U.S. and Britain are at risk of having their ratings downgraded if they don't get their public finances under control. Fitch, another ratings agency, downgraded its rating on Greece.
Foreign debt problems and a potential downgrade to the U.S. triple-A credit rating could make it much more difficult for the government to finance its stimulus programs and put the nascent economic recovery in jeopardy. The Dow Jones industrial average fell 104 points Tuesday.
In early trading, the Dow Jones industrial average fell 31.44, or 0.3 percent, to 10,254.53. The Standard & Poor's 500 index fell 4.77, or 0.4 percent, to 1,087.17, while the Nasdaq composite index fell 13.67, or 0.6 percent, to 2,159.32.
Yesterday’s Top Performing Small Cap stock:
GWS Technologies, Inc. (OTC BB: GWSC) was a SmallCapVoice.com top performer yesterday closing up over 13% on trading volume of 32,520 shares.
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.
Today’s SmallCapVoice.com Hot Stock to Watch:
VitaminSpice (OTC BB: VTMS)
VitaminSpice announced that VTMS was featured in Nutraceuticals World just this week. To read the article click on the following link - read article (http://www.nutraceuticalsworld.com/articles/2009/12/online-exclusive-spiced-up-vitamins). The article discusses how VitaminSpice fortifies everyday seasoning with essential vitamins and minerals.
The Nutraceuticals World Online Exclusive goes on in the article to explain how VTMS has found an innovative way to boost the nutritional quotient of everyday seasonings. The article went on to state, "If you think that combining vitamins and spices might be just a passing fad, think again. The idea won over former Wal-Mart president and CEO, Willliam Fields, who was recently added to VitaminSpice's Board of Directors. "Bill was the one generally credited with taking Wal-Mart from the tens of millions to hundreds of billions," said Mr. Bukstel. "[He] was Sam Walton's right-hand-man and we are thrilled to have him on board."
It was also explained in the article that VTMS' distribution is flourishing not just in grocery and natural food venues, but also in retirement homes and school districts. Nutraceuticals World is a well-respected peer reviewed journal that is a leading and informative source of innovative products to improve personal health and wellness.
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