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 Decline on Weak Economic Reports and Fed Chairman Comments
Stocks remain weaker on renewed worries that the economy may be teetering on the edge of a recession after jobless claims unexpectedly jumped, while 4Q GDP was left unchanged compared to expectations of a small upward revision. The weak economic reports are sparking gains in Treasuries, while Fed Chairman Ben Bernanke is reiterating themes from yesterday's testimony.
The Commerce Department reported Thursday that the gross domestic product increased at a scant 0.6 percent pace in the October-to-December quarter. The reading -- unchanged from an initial estimate a month ago -- underscored just how much momentum the economy has lost. In the prior quarter, the economy clocked in at a brisk 4.9 percent pace.
In late morning trading, the Dow Jones industrial average dropped 130.01, or 1.02 percent, to 12,564.27.
Broader stock indicators also lost ground. The Standard & Poor's 500 index declined 12.91, or 0.94 percent, to 1,367.11, and the Nasdaq composite index lost 20.95, or 0.89 percent, to 2,332.83.
Treasury prices rallied Thursday after new reports showed the economy barely moved forward at the end of last year and that jobless claims rose last week.
The benchmark 10-year Treasury note rose 24/32 to 98 with a yield of 3.74 percent, down from 3.85 percent late Wednesday
Continuing declines for the dollar have exacerbated worries about foreign central banks diversifying away from Treasurys, their traditional reserve asset of choice, for instruments denominated in higher yielding currencies like the euro. On Thursday the euro traded above $1.51, after breaking above $1.50 for the first time on Wednesday.
Wednesday’s Top Performing SmallCapVoice.com stocks:
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Today’s Hot Stocks to Watch:
IMAGE Worldwide announced today the launch of a lucrative new division within the company, City Book Savings. IMGW also projected revenues are expected to reach $2.6 million annually in 2010.
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