Daily Small Cap Market News and Stock Highlights from SmallCapVoice.com

Stocks fell Wednesday as investors remained skittish ahead of the president's State of the Union address and the conclusion of the Federal Reserve's latest interest-rate setting meeting.

The latest batch of earnings and economic reports were again overshadowed by concerns over proposed financial regulatory changes.

Traders watched a hearing on Capitol Hill where Treasury Secretary Timothy Geithner answered questions about the government's rescue of insurance giant American International Group Inc. last year. Geithner oversaw the bailout as head of the Federal Reserve Bank of New York.

The Fed is scheduled to wrap up a meeting later Wednesday where it is expected to keep interest rates at historic lows. Concern about whether Bernanke would be confirmed for another term as chairman contributed to the market's drop late last week. His term ends Sunday.

Bernanke has been a champion of leaving rates at historic lows to help drive economic growth, a policy that also supports the stock market.

While the Fed is unlikely to raise interest rates, investors will closely review the Fed's statement on the economy to determine when it might raise rates in the future and also when it might wind down more of its economic stimulus measures.

Among economic news, the Commerce Department said sales of new homes fell 7.6 percent in December. Sales came to a seasonally adjusted annual rate of 342,000, below the 370,000 forecast by a Thomson Reuters survey of economists.

In midmorning trading, the Dow Jones industrial average fell 28.71, or 0.3 percent, to 10,165.58. The Standard & Poor's 500 index fell 2.98, or 0.3 percent, to 1,089.19, while the Nasdaq composite index fell 1.75, or 0.1 percent, to 2,201.98.

Yesterday’s Top Performing Small Cap stock:

Lux Energy Corporation (OTC BB: LUXE) was a SmallCapVoice.com top performer yesterday closing up over 7% on trading volume of 30,425 shares.

Lux Energy Corp. recently acquired additional 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.

Lux Energy is an oil and gas production and exploration company focusing on developing oil and gas resources in North America.

Today’s SmallCapVoice.com Hot Stock to Watch:

American Eagle Energy, Inc. (OTC BB: AMZG)

Murphy Analytics (MA) has initiated coverage on oil and gas exploration and production company American Eagle Energy, Inc.. The 16-page Initiation Report contains a detailed discussion of AMZG’s recent achievements, short-term and long-term market dynamics, macroeconomic data and indicators, and risks. The Initiation Report is available at no charge at http://www.murphyanalytics.com/uploads/AMZG_Initiation.

Analyst Patrick J. Murphy, CFA notes in the report: “In the brief period of time during which Mr. Findley has been the President of AMZG, the Company has acquired an interest in oil and gas assets, demonstrated an ability to raise capital and engaged a consulting firm to identify additional acquisition targets… As illustrated later in this report, global demand for energy is expected to increase significantly over the coming decades, pushing oil and gas prices higher. Increasing demand over the shorter term also seems likely to put upward pressure on prices as economies recover globally… Although oil and gas development and production has many risks, the outlook for revenue potential for successful producers is bullish and AMZG is led by an accomplished industry veteran with a history of successful exploration and production.”

Small Cap Voice SCV is an electronic publication, and is for informational purposes

only. The stocks profiled by SCV are only company profiles and are not intended to be and should not be accepted by you as recommendations to buy or sell in these securities. These profiles are compiled from publicly available sources. Our sources include, but are not limited to, online research, company profiles, member suggestions, magazines, newspapers, analyst suggestions, broker recommendations, contact with the company, company rumors, press releases and other similar information sources. All profiles are based on information that is accessible by the public. Investing in stocks involves risk. SCV is not and does not hold itself out to be a registered broker or dealer or other licensed securities professional. You should consult a qualified, licensed financial advisor or stock broker before making any decisions to invest in the securities of any company that is described in these profiles.  For compensation and complete disclaimer click here.

Contact:

Stuart T. Smith

CEO

512-267-2430

ssmith@smallcapvoice.com
http://www.smallcapvoice.com