The market rose Monday as investors looked past a disappointing profit from Citigroup Inc. and bought health care stocks on hopes that a special election in Massachusetts will take away power from Senate Democrats and make it harder for President Barack Obama to make changes to health care.
The gains come after stocks fell Friday when JPMorgan Chase & Co.'s earnings fell short of expectations. The Dow Jones industrial average lost 100 points, its steepest slide of 2010. U.S. markets were closed Monday for Martin Luther King Jr. Day.
The rebound came as Kraft sealed an agreement to acquire Cadbury for $18.9 billion. That boosted hopes that corporate dealmaking, which is a sign of confidence in the economy, will increase.
Meanwhile, online brokerage TD Ameritrade Holding Corp. said lower interest rates and higher expenses contributed to a 26 percent drop in its first-quarter profit.
Citigroup reported a fourth-quarter loss of $7.6 billion loss. The bulk of the loss is due to expenses related to its repayment of $20 billion in government bailout money.
But the report, like JPMorgan Chase's, reflected consumers' struggle to repay their loans. Citigroup set aside $8.18 billion to cover bad loans during the quarter.
In the first hour of trading, the Dow rose 36.58, or 0.3 percent, to $10.646.23. The broader Standard & Poor's 500 index rose 4.90, or 0.4 percent, to 1,140.93, and the Nasdaq composite index rose 15.40, or 0.7 percent, to 2,303.39.
Yesterday’s Top Performing Small Cap stock:
Lux Energy Corp. (OTCBB: LUXE) was a SmallCapVoice.com top performer yesterday closing up over 33% on trading volume of 124,060 shares
Lux Energy Corp. has recently acquired an added working interest in the Barrhead production reservoirs located in West Central Alberta. These reservoir locations were initially explored and developed as natural gas plays. The most recent development well drilled for its' natural gas potential encountered a oil reservoir. The operator has advised that this oil zone is flowing at 40 barrels of high gravity crude per day including the gas cap which is producing at 320 mcf.
Today’s SmallCapVoice.com Hot Stocks to Watch:
SkyPeople Fruit Juice, Inc. (AMEX: SPU)
SkyPeople Fruit Juice, Inc., a processor and manufacturer of concentrated kiwifruit, apple, pear and other fruit juices and fruit products in China, today announced preliminary 2009 results and provided guidance for 2010.
SkyPeople anticipates revenues of between $58 million and $60 million for the full year ended December 31, 2009. This represents year-over-year revenue growth of between 39% to 44%, which was attributed to increased sales of SkyPeople's proprietary, Hedetang(R)-branded, fruit juice product line plus sales of fruit concentrate and fresh fruit to its growing list of China-based food and beverage distributors and manufacturers.
Preliminary 2009 net income is anticipated to be between $15 and $16 million for the year, representing between 50% and 60% year-over-year growth. The increase resulted from higher overall sales, including the Company's Hedetang(R)-branded fruit juices, for which the first nine months of 2009 yielded average gross margins of 38%.
2010 Guidance
Management is providing revenue guidance of $92 to $102 million and net income guidance of between $19 to $21 million for 2010. Growth is expected to be driven by enhanced distribution of its high-margin Hedetang(R)-branded juices, capacity expansion and increased orders from domestic and international customers of concentrates as global markets rebound.
Bark Group, Inc. (OTCBB: BKPG)
Bark Group Inc., an award-winning, multi-national European advertising company, today announced that Linie Aquavit, a leading international Norwegian spirit brand, has chosen Bark to represent the account.
Linie Aquavit is owned and produced by Norwegian Arcus, a multi-national company with wine and spirits. The account, which will be handled by the Bark Copenhagen office, includes strategic consulting as well as creative development and production in a number of countries.
Bark Group Inc. is an award-winning European company that delivers cutting-edge advertising and marketing campaigns to leading European businesses. Bark develops and delivers highly effective marketing campaigns on structural, strategic, and emotional and creative levels. Its integrated approach is revolutionizing the communications field while offering clients a higher return on their advertising investments. Bark's objectives are to achieve aggressive growth through acquisition and development of satellite companies around the globe, starting with Europe. The company is adamantly pursuing its ambitious goal to be ranked among the 10 best and most profitable communication companies in Europe within 4 years. In November 2009, Bark opened an office in New York City in order to penetrate the U.S. market.
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