Investors have reignited Wall Street's rally after hearing the government's plan to help banks remove as much as $1 trillion in bad assets from their books.
Major stock indexes jumped more than 3 percent in morning trading Monday, including the Dow Jones industrial average, which rose 250 points. Financial stocks led the advance.
Stocks extended a two-week rally after the Treasury Department announced a plan to revive lending that would rely on the government's $700 billion financial rescue fund, the Federal Reserve and the Federal Deposit Insurance Corp., as well as private investors.
The advance gained momentum after a surprise increase in sales of existing homes. Home prices fell sharply but traders were encouraged to see sales pick up rather than fall. That's the second bit of good housing news over the past week -- last Tuesday, the government issued a better-than-expected housing starts report.
But the prospect that banks might get help drove the market's advance. The goal of the government's plan is to buy toxic assets that are weighing on banks' balance sheets and are hampering banks' ability to resume more normal lending to consumers and businesses. The drop in lending has worsened and prolonged the recession.
In midmorning trading, the Dow rose 259.73, or 3.6 percent, to 7,538.11.Broader stock indicators also surged. The Standard & Poor's 500 index rose 28.18, or 3.7 percent, to 796.72, and the Nasdaq composite index rose 47.50, or 3.3 percent, to 1,504.77.
Yesterday’s Top Performing SmallCapVoice.com stock:
ZAGG, Inc. (OTC BB: ZAGG) was a SmallCapVoice.com top performer moving up over 3% on trading volume of 139,167 shares.
ZAGG Inc. will report its financial results for the Fiscal Year 2008, ended December 31, 2008, on Monday, March 30, 2009.
ZAGG Inc. designs, manufactures, and distributes protective clear coverings and accessories for consumer electronic and hand-held devices worldwide under the brand names invisibleSHIELD™ and ZAGGaudio™. The invisibleSHIELD is a protective, high-tech patented film covering, designed for iPods, laptops, cell phones, digital cameras, PDAs, watch faces, GPS systems, gaming devices, and other items. The patent-pending invisibleSHIELD application of clear protective film covering a device is the first scratch protection solution of its kind on the market, and has sold millions of units. Currently, ZAGG offers over 3,000 precision pre-cut designs with a lifetime replacement warranty through online channels, big box retailers like Best Buy, resellers, college bookstores, Mac stores and mall kiosks. The company continues to increase its product lines to offer additional electronic accessories and services to its tech-savvy customer base.
Today’s SmallCapVoice.com Hot Stocks to Watch:
Sports Supplement Group, Inc. (OTC BB: SRSP) continues to trend higher
SmallCapVoice.com, Inc. announced today that a new audio interview featuring Sports Supplement Group, Inc., a sales and marketing company formed to acquire brands and companies currently operating in the sports performance and weight management markets. The interview can be heard here at http://smallcapvoice.com/blog/3-19-09-audio-interview-sport-supplement- acquisition-group-otcbb-srs/.
Sports Supplement Group Inc. (Owner of ERGOPHARM Performance Nutrition) is a sales and marketing company formed to acquire brands and companies currently operating in the sports performance and weight management markets. Since its formation, Sports Supplement Group has been actively engaged in seeking out companies that management believes would integrate efficiently into its portfolio.
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