Stocks edged higher Tuesday after better-than-expected data on home construction, building permits and inflation eased some of the fears that have dogged investors in recent weeks about the speed of a recovery in the economy.
The modest moves after Monday's big drop indicated that investors are still on edge that a three-month stock market rally could fizzle if the economy doesn't show more signs it is emerging from the recession.
The Commerce Department said home construction jumped in May by the largest amount in three months. Construction of new homes and apartments jumped 17.2 percent last month to a seasonally adjusted annual rate of 532,000 units. That topped the 500,000 economists had been expected. Construction had fallen in April to a record low of 454,000 units.
Applications for building permits, which are seen as a good indicator of future activity, rose by 4 percent in May to an annual rate of 518,000 units.
The Labor Department said wholesale prices rose less than expected in May as a large jump in the price of gasoline offset a drop in food costs. The Producer Price Index increased by a seasonally adjusted 0.2 percent from April. That was below the increase of 0.6 percent analysts expected.
Not all the news was upbeat. The Federal Reserve said industrial production fell a larger-than-expected 1.1 percent in May as the recession hurt demand for manufactured goods including cars, machinery and household appliances.
In early trading, the Dow Jones industrial average rose 26.68, or 0.3 percent, to 8,638.81. The Standard & Poor's 500 index rose 3.41, or 0.4 percent, to 927.13, and the Nasdaq composite index rose 9.08, or 0.5 percent, to 1,825.46.
Yesterday’s Top Performing Small Cap stock:
GWS Technologies, Inc. (OTC BB: GWSC) was a SmallCapVoice.com top performer soaring up over 76% on trading volume of 687,700 shares.
Richard Reincke, President and CEO of GWS Technologies, Inc., Updates Shareholders on Recent Company Progress and News at SmallCapVoice.com
The new audio interview is now available and can be heard here at: http://smallcapvoice.com/blog/6-11-09-audio-interview-with-gws-technologies-inc-otcbb-gwsc/.
Today’s SmallCapVoice.com Hot Stock to Watch:
Octus Energy (OTC BB: OCTI)
Octus Energy today announced it is joining the California Lighting Technology Center's (CLTC) California Smart Lighting Initiative. The Initiative was conceived by CLTC in association with industry partners, the University of California, California utilities, and the California Energy Commission with an aim to reduce maintenance, energy and operational costs for exterior lighting applications by 50% or more.
The Initiative establishes a statewide directive for all public building applications, including universities, colleges, municipalities and state buildings to adopt smart exterior lighting. Applications include parking lot, parking garage, pathway and building lighting.
"The CLTC spearheads innovation in the lighting industry, and we advocate their smart lighting initiative," said Chris Soderquist, Octus CEO. "We intend to proactively bring best-of-breed exterior lighting solutions to market as part of the Octus Smart Energy Platform (OctusSEP). Our collaboration with CLTC is a major step forward for our company and the Initiative."
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