Stocks rose Friday, following gains in markets overseas and a round of buying on Thursday. Better-than-expected economic data is suggesting that the U.S. economy might be in better shape than some investors had feared.
Traders drew some optimism from European Union leaders who said economic stimulus measures by governments and central banks are working by cushioning the worst effects of the downturn. They said the steps would allow a sustainable economic recovery and that no new stimulus is needed right now.
U.S. traders are bracing for heavy volume and bouncy trading Friday because of the occurrence of a quarterly "quadruple witching," which marks the simultaneous expiration of a number of different options contracts. Stocks are more likely to push higher during the expirations.
Health care, technology and retail stocks led the market, while consumer staples and utilities lagged.
Oil prices rose, a possible sign investors expect economic activity will pick up and increase demand. Light, sweet crude rose 49 cents to $71.86 per barrel on the New York Mercantile Exchange.
In early trading, the Dow Jones industrial average rose 55.85, or 0.7 percent, to 8,611.45. The broader Standard & Poor's 500 index rose 8.08, or 0.9 percent, to 926.45 and the Nasdaq composite index rose 25.80, or 1.4 percent, to 1,833.52.
Yesterday’s Top Performing Small Cap stock:
Green Star Alternative Energy Inc. (Pink Sheets: GSAE) was a SmallCapVoice.com top performer moving up over 25% on trading volume of 151,383 shares.
Green Star Alternative Energy Inc. received an updated Speculative Buy rating with a price target of $5.70 by Beacon Analyst, Victor Sula, Ph.D.
In the report, the analyst notes GSAE’s recent filing with the SEC to become a fully reporting publicly traded entity on Nasdaq’s OTCBB.
The analyst also writes, “GSAE is evaluating various locations across Serbia as commercially viable wind farm sites and evaluating potential acquisitions to build its wind farm portfolio. …the revenue potential of GSAE’s wind energy projects is significant. The Company is pursuing opportunities to develop 300 MW of wind energy and provide clean energy to Serbia and neighboring European countries. During Q2 2009, GSAE began negotiations for a 60 MW wind energy partnership project with Vintim representing $23 million in potential gross revenues annually.”
Today’s SmallCapVoice.com Hot Stock to Watch:
GWS Technologies, Inc. (OTC BB: GWSC)
On Wednesday, GWS Technologies announced plans for a new solar farm in the Phoenix area. Yesterday, GWSC announced that it has partnered with Dominion Real Estate Partners, Inc. (DREP) to provide solutions and technology integration on alternative energy projects in Texas and Arizona.
The market reacted strongly to both press releases driving GWSC significantly higher yesterday on strong volume. GWSC moved up over 38% on trading volume of 448,926 shares.
The recent breakout in price and volume for GWS Technologies continues to garner serious market attention.
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