Wholesale inflation rose more than expected in November, led by a surge in energy costs.
The increase likely will be discussed as Federal Reserve policymakers begin a two-day meeting on interest rates. The Fed is expected to keep rates unchanged when it releases a policy statement following the meeting Wednesday.
The Labor Department said wholesale prices jumped 1.8 percent last month, more than double the 0.8 percent gain analysts expected. Core inflation, which excludes energy and food, rose 0.5 percent, the biggest increase in more than a year.
A number of investors see a rate hike coming within the next year as the Fed takes a pre-emptive strike to keep inflation at bay. That would help shore up the value of the dollar, but also could trip up a rally that has pushed stocks sharply higher over the past nine months.
Investors also turned cautious after Best Buy said its fourth-quarter profit margins will face pressure as shoppers look for less expensive items. The comments came as the electronics retailer said its third-quarter earnings more than quadrupled.
Stocks fell overseas as the dollar rose against the euro amid continuing worries about Greece's debts and the financial health of Austria's banks.
In midmorning trading, the Dow Jones industrial average fell 38.84, or 0.4 percent, to 10,462.21. The broader Standard & Poor's 500 index fell 4.99, or 0.5 percent, to 1,109.12, and the Nasdaq composite index fell 10.10, or 0.5 percent, to 2,202.00.
Yesterday’s Top Performing Small Cap stocks:
Vivakor, Inc. (OTC BB: VIVK) was a SmallCapVoice.com top performer yesterday closing up over 11% on trading volume of 3,230,672shares.
Skymark Research, a leading provider of small- and micro-cap independent investment research, today initiated coverage on Vivakor, Inc. Skymark Research is currently offering a complimentary trial subscription.
Vivakor, Inc. is a biomedical/biotechnology company with transdisciplinary research that develops and acquires products in the fields of molecular medicine, electro-optics, biological handling and natural and formulary compounds that extend or improve life.
Biomedical Technology Solutions Holdings, Inc. (OTC BB: BMTL) was a another SmallCapVoice.com top performer yesterday closing up over 10% on trading volume of 177,525 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:
Solutions Group, Inc. (Pink Sheets: SOLU)
Solutions Group Inc. announced that it has been awarded a contract from CrowleyJones to head up a team that will study the feasibility of a ground-breaking technology for use in a new medical application.
The contract, which covers the viability of the technology for the specific application, manufacturability, and probability of FDA approval, is scheduled to be completed in the first quarter of 2010. Upon successful completion of the proof of concept, parties have agreed to terms of a follow-up contract for the development stage of the product which will include an equity position for SGI.
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