Stocks fell Wednesday on concerns that modest drops in the number of bad loans at banks and tighter lending standards in China will prolong a recovery in the economy.
Bank of America Corp. said that economic conditions "remain fragile." However, not all the assessments were as cautious. Wells Fargo & Co. said a better economic outlook and improving credit statistics signal that conditions are strengthening.
Investors have been looking for reassurances during the early parts of earnings season that consumers are rebounding and the economy is strengthening.
With unemployment still at 10 percent and consumers unable to pay mortgages and other loans, it would be difficult for spending to rise sharply and provide a necessary boost to a fragile economic recovery.
Beyond bank earnings, concern grew that China's efforts to keep its economy under control could hurt a global recovery. A newspaper reported that some Chinese banks were ordered to stop lending for the rest of January after exceeding credit limits. The report came a day after a speech by Premier Wen Jiabao was seen as a sign the country might slow the flow of credit.
In early trading, the Dow Jones industrial average fell 130.82, or 1.2 percent, to 10,594.61, a day after rising 116 points.
The broader Standard & Poor's 500 index fell 12.18, or 1.1 percent, to 1,138.05, and the Nasdaq composite index fell 23.76, or 1 percent, to 2,296.64.
Yesterday’s Top Performing Small Cap stock:
Budget Center Inc. (Pink Sheets: BDGN) was a SmallCapVoice.com top performer yesterday closing up over 25% on trading volume of 669,413 shares
Budget Center Inc. announced that the Company’s plans for developing and launching its “Budget” brand group of websites targeting the growing number of thrift minded online travel consumers is well underway.
On Dec. 27, 2009, the Company launched www.budgethotels.com and since then the website has generated an impressive number of visitors and the initial feedback has been exceptionally positive. Revenues are growing daily 24/7 and the conversion rate so far is an impressive 45% which is much higher than expected as the industry average is a 10% conversion rate. Management is continuing to work with its industry IT experts, The Wendling Group LLC (www.wendling.com), and Sidney, Australia based Hotels Combined (http://www.hotelscombined.com/) to add new features and content in an effort to draw more new visitors and offer repeat customers a better overall online experience and help save them more money on their future travel bookings.
The Company expects to launch its second domain www.budgetresorts.com by the end of January 2010 in collaboration with Minneapolis, MN based Connexions CLTS, the preferred provider of San Francisco-based EzRez Software Inc. and the largest US based provider of travel solutions for loyalty programs. The site is expected to offer the largest inventory of travel content available on the internet all at “budget” prices for consumers.
Today’s SmallCapVoice.com Hot Stocks to Watch:
SkyPeople Fruit Juice, Inc. (AMEX: SPU)
SectorWatch.biz announces the availability of a commentary of interest to investors in SkyPeople Fruit Juice, Inc. and other China-related equities making news and driving markets today. Investors can view our free commentaries at: www.SectorWatch.biz – in association with FiSpace.net, a dynamic social networking site for investors.
China’s economic vitality has gained increasing importance globally partly because its growth remained robust even as the world’s developed economies suffered the steepest drop in trade and economic output in decades. Statistics released last week showed that China’s yearlong downturn in export growth reversed in December surging nearly 18% from 2008 - well beyond the median forecast by Dow Jones Newswire’s poll of nine economists. World Bank estimates suggest that China -- the world’s fifth-largest economy four years ago -- may soon surpass Japan to claim the No. 2 spot.
This is good news for exporters of products from China such as SkyPeople Fruit Juice, Inc., a leading exporter of concentrated fruit juices and related products for domestic and international consumers. In a short time, SkyPeople has grown from a moderately-sized domestic juice producer to one China's largest fruit juice and fruit product manufacturers with a market scope stretching to over a dozen countries around the globe.
A fact sheet on SkyPeople Fruit Juice, Inc. is available here:
http://www.smallcapvoice.com/spu/factsheet.html
SkyPeople Fruit Juice, Inc. is a holding company of Shaanxi Tianren, which is organized according to the laws of the People's Republic of China. Shaanxi Tianren's main products are concentrated apple, kiwifruit, pear and other fruit juices for domestic and international consumers. Its brand, HEDETANG®, is positioned as a high quality, healthy and nutritious juice concentrate and clear juice product used both as an ingredient in other products and an end-use juice concentrate product. Shaanxi Tianren utilizes the largest kiwifruit plantation in China and is a leading producer of concentrated kiwifruit juice in Asia.
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