SmallCapVoice.com, Inc., a recognized corporate consulting firm known for its ability to help emerging growth companies build a following among retail and institutional investors, provides the following market commentary and small cap stock highlights:
Stocks Soar After Fed's Bigger-Than-Expected Half-Point Cut in Interest Rate:
Following some midmorning uncertainty, enthusiasm roared back and stocks are trading at session highs after the Fed cut its benchmark interest rate by a larger-than-expected half a percentage point. Most investor’s were anticipating the Fed to only cut the discount rate by a quarter percentage point. The Fed cut the benchmark federal funds rate to 4.75 percent after keeping it unchanged for more than a year. It has not lowered this rate since 2003. It also reduced the discount rate which is what it charges banks borrowing from its discount window by half a percentage point to 5.25 percent.
The Fed responded to the spreading impact of credit market problems on the rest of the economy by saying, "the tightening of credit conditions has the potential to intensify the housing (market) correction and to restrain economic growth more generally.
The Dow Jones industrial averaged soared 251.35, or 1.88 percent, at 13,654.77. The Standard & Poor's 500 index jumped 32.57, or 2.21 percent, to 1,509.22, while the Nasdaq composite index was up 54.87, or 2.13 percent, to 2,636.53.
Bonds extended their declines after the announcement as investors pulled their money out of safe haven Treasury bonds and shifted it back into stocks. The yield on the benchmark 10-year Treasury note rose to 4.52 percent from 4.47 percent late Monday.
Yesterday’s Top Performing SmallCapVoice.com’s stock included:
Zippi(TM) Networks, Inc. (Pink Sheets: ZPNW) was SmallCapVoice.com’s top performer for 9/17/07 closing up 20% on trading volume of 118,504 shares.
The Alliance Enterprise Corporation (Pink Sheets: AETR) is today’s SmallCapVoice’s hot stock to watch.
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About SmallCapVoice.com
SmallCapVoice.com is a recognized corporate investor relations firm, with clients nationwide. Known for its ability to help emerging growth companies build a following among retail and institutional investors, SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its client's financial news releases. SmallCapVoice.com also offers individual investors with all the tools they need to make informed decisions about the stocks they are interested in. Tools like our stock charts, stock alerts, and our investor fact sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets.
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Stuart T. Smith
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ssmith@smallcapvoice.com
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