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 Rally On Bank Rescue Plan
Wall Street extended a huge rally Friday as investors stormed back into the market, relieved that the government plans to rescue banks from billions of dollars in bad debt.
If a plan is put in place to help the banking industry, it could help alleviate the uncertainty that has been sending the markets into tumult over the past week. Lending has grinded to a virtual standstill in the wake of the bankruptcy of Lehman Brothers Holdings Inc. and the bailout of teetering insurer American International Group Inc.
The Federal Reserve said Friday it will expand its emergency lending and let commercial banks finance purchases of asset-backed paper from money market funds. The Fed will also buy short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
And to help calm investors' anxieties, the Treasury Department has decided to use a Depression-era fund to provide guarantees for
To help limit the freefall in financial stocks, the Securities and Exchange Commission announced it is temporarily banning the short-selling of nearly 800 financial stocks. Short-selling is the common practice of betting against company stocks by borrowing its shares, selling them, and pocketing the difference when they fall.
In morning trading, the Dow Jones industrial average rose 359.88, or 3.27 percent, to 11,379.57.
Broader stock indicators also surged. The Standard & Poor's 500 index rose 38.77, or 3.21 percent, to 1,245.28, and the Nasdaq composite index rose 57.46, or 2.61 percent, to 2,246.56.
Treasury prices dropped as investors poured money back into stocks. The yield on the 3-month Treasury bill -- a safe investment to which investors have rushed this week -- rose to 0.96 percent from 0.07 percent late Thursday. Yields move opposite from price. The yield on the benchmark 10-year Treasury note shot up to 3.76 percent from 3.53 percent late Thursday.
The dollar rose against most other major currencies in Friday trading. Gold prices fell. Light, sweet crude for October delivery rose $4.71 to $102.59 a barrel on the New York Mercantile Exchange.
Wednesday’s Top Performing SmallCapVoice.com stocks:
Back on July 30, 2008, OmniReliant Holdings, Inc. (OTC Bulletin Board: ORHI signed a Letter of Intent to acquire all the assets of Abazias, Inc. from an Abazias subsidiary. The transaction is subject to Board of Director and shareholder approval, in addition to customary closing conditions.
Today’s SmallCapVoice.com Hot Stock to Watch:
Seven Arts Pictures plc (OTC BB: SAPXF) is today’s hot stock to watch.
Seven Arts Pictures plc announced the delivery of Drunkboat directed by Bob Meyer, and starring John Malkovich and John Goodman. Initial revenues on the movie will be realized in this fiscal year 2009.
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