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Stocks Fall As Investors Await Bailout Plan Details
Wall Street fell in early trading Monday as investors nervously awaited further news about the government's plan to buy $700 billion in banks' mortgage debt. The Dow Jones industrials were down more than 150 points while the credit markets remained nervous, but not showing the signs of panic that Treasury trading saw last week.
Investors are relieved that federal authorities are taking action to relieve the nation's banks of their toxic assets. But it is not sure yet how successful the plan will be in loosening up the credit markets and propping up the sinking housing market.
In midmorning trading, the Dow Jones industrial average fell 158.26, or 1.39 percent, to 11,230.18.
Broader stock indicators also declined. The Standard & Poor's 500 index fell 19.59, or 1.56 percent, to 1,235.49, and the Nasdaq composite index fell 30.44, or 1.34 percent, to 2,243.46.
The market did get some good news from Microsoft, which said it plans to repurchase as much as $40 billion of its shares. The software maker said it completed a previous $40 billion buyback plan. The company also raised its quarterly dividend to 13 cents from 11 cents. Microsoft rose $1.09, or 4.3 percent, to $26.25.
The dollar fell against most other major currencies, while gold prices rose.
Light, sweet crude for October delivery rose $4.32 to $108.87 a barrel on the New York Mercantile Exchange. On Friday, crude oil jumped by more than $6 a barrel to break back above the $100-a-barrel mark.
Wednesday’s Top Performing SmallCapVoice.com stocks:
Shares in major gold mining companies continued to climb as gold prices rose and the dollar fell against the euro.
The price of gold climbed $34.30 to $899 Monday morning on the New York Mercantile Exchange.
Gold prices exploded Wednesday -- posting the biggest one-day gain ever in dollar terms -- as fears of more credit market turmoil unnerved investors and triggered a flood of safe-haven buying.
Some industry experts are looking for gold to move higher through 2009 and 2010 and are forecasting gold prices to average $950 and $1,000 an ounce respectively. But if the macro environment deteriorates, analysts think gold could rise to uncharted territory.
Today’s SmallCapVoice.com Hot Stock to Watch:
New Asia Gold Corp. (Pink Sheets: NWAG) is today’s hot stock to watch.
New Asia Gold Corp announced that data obtained as a result of exploration of the Kapur project through drilling and trenching is complete enough and of excellent quality to show that there are promising smaller deposits on the leases. In the current 43101F independent engineering report, it has been estimated that there are 330,000 proven ounces of gold with a value of $132 million assuming an average value of gold of $600 per ounce, with recovery costs of $200 per ounce. Currently analysts are projecting that gold will reach at least an average of $1000 per ounce over the next 5 years. These reserves are based on the initial drilling program where there was only enough density of data to assign reserves to 3 of 6 zones. In one of the zones that has been assigned probable reserves, there is a drill hole with 37 meters (110 feet) of silicified rocks identical to the main silica cap (180,000 proven ounces of gold) with relatively high grades of gold.
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