The Commerce Department said the gross domestic product grew at an annual rate of 5.7 percent during the fourth quarter, easily topping economists' forecast for growth of 4.5 percent.
The strong GDP report could get the market back on track after a 10-month rally came to a screeching halt over the past week. Shares have been falling since hitting a 15-month high last week.
Concerns have been mounting that potential new regulations coming out of Washington could upend a fragile economic recovery. President Barack Obama's calls last week to restrict trading by big financial institutions helped spark the sell-off. He has provided scant details about the bank overhaul plan to help alleviate any concerns.
The president is planning to announce further details about a plan to provide small businesses with tax credits that boost hiring. High unemployment -- it remains at 10 percent -- is one of the biggest obstacles the country faces as it tries to recover from the worst recession since the Great Depression.
Analysts have been saying for months the market has been climbing too high, too fast. The uncertainty brought on by Washington could be giving investors a reason to pull back. The S&P surged 60.3 percent during the 10-month rally.
The strong fourth-quarter provides the strongest sign yet the economy is recovering. The report showed consumer spending increased and there was a sharp jump in business spending on equipment and software.
However, some say the economy will slow from the torrid pace seen during the fourth quarter because much of the growth was tied to companies replenishing low inventories. Restocking of inventories usually only provides a temporary bump in economic growth.
In early morning trading, the Dow Jones industrial average rose 30.15, or 0.3 percent, to 10,150.61. The Standard & Poor's 500 index rose 3.66, or 0.3 percent, to 1,088.19, while the Nasdaq composite index rose 16.73, or 0.8 percent, to 2,195.73.
Yesterday’s Top Performing Small Cap stock:
Vega Promotional Systems Inc. (Pink Sheets: VGPR) was a SmallCapVoice.com top performer yesterday closing up over 44% on trading volume of 9,494,330 shares.
Vega Promotional Systems Inc. engages in the production and sale of biofuel products worldwide. The Company manufactures energy efficient pellet fuel made from organic waste by-products. It offers bio-mass and bio-diesel products for power generation units.
Today’s SmallCapVoice.com Hot Stock to Watch:
Attitude Drinks Incorporated (OTC BB: ATTD)
A New Audio Interview Featuring Roy Warren, CEO of Attitude Drinks Incorporated, Is Now at SmallCapVoice.com. The interview can be heard here at http://smallcapvoice.com/blog/1-28-10-audio-interview-with-attitude-drinks-incorporated-otcbb-attd/.
Roy Warren, CEO of Attitude Drinks Incorporated, stated, "We are delighted to work with Small Cap Voice to introduce our corporate focus on Functional RTD milk. Phase III Recovery is our first milk introduction and represents years of development and research targeting Sports and Exercise Recovery. We are proud to announce that this revolutionary new milk beverage is the first of its kind using "state of the art" milk processing technology and scientific research regarding recovery aids. Phase III was produced for commercial sale for the first time this week and we are aggressively marketing it to the retailers, distributors, fitness centers and colleges and universities, many of whom have already expressed interest from pre-sale introductions."
Mr. Warren continues on to state, "Phase III delivers 35 grams of protein in 14.5 ounces and is made from low fat milk with reduced sugar and lactose. The balance of 35 grams of milk protein and 36 grams of carbohydrates delivers the perfect combination to maximize sports recovery and increase protein synthesis. There are many other natural nutrients and minerals that work to support the recovery functionality of Phase III including the electrolytes and hydration attributes found naturally in our filtered milk. Because we do not add any protein or minerals to accomplish this blend, the nutrition panel is free of exotic supplements and the finished drink tastes like regular flavored milk, clearly superior to any other protein drink on the market today."
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