Austin, TX 6/22/2009 10:33:11 PM
News / Finance

Daily Small Cap Market News and Stock Highlights from SmallCapVoice.com

Stocks are lower as World Bank reduces 2009 forecast for global economy

Lowered expectations for the global economy are giving investors more to be wary about.

 

The major stock indexes retreated more than 1 percent in early trading Monday after the World Bank added to the market’s growing economic worries. The Washington-based global lender predicted that the world economy will shrink 2.9 percent in 2009. That estimate was worse than its previous forecast for a 1.7 percent decline.

 

The stock market is coming off its first weekly loss in more than a month after mixed economic readings last week deflated hopes for a quick U.S. recovery. No major economic reports are due Monday, but later in the week traders will get data on new and existing home sales, durable goods orders, gross domestic product and personal incomes and spending.

 

The Federal Reserve will also be in the spotlight after its two-day meeting on monetary policy that ends Wednesday. The central bank is expected to hold its key fed funds rate steady near zero, but investors want to know whether policy makers will buy more Treasury bonds than they initially planned to help keep interest rates down.

 

The Fed has been buying government debt at the same time the Treasury Department has been issuing record amounts of government debt. The Treasury is planning to auction $104 billion in debt this week.

 

In early trading, the Dow Jones industrial average fell 105.50, or 1.2 percent, to 8,434.23. The Standard & Poor’s 500 index fell 14.30, or 1.6 percent, to 906.93, and the Nasdaq composite index fell 29.80, or 1.6 percent, to 1,797.67.

 

Yesterday’s Top Performing Small Cap stock:

 

Safeguard Security Holdings, Inc. (Pink Sheets: SSHS) was a SmallCapVoice.com top performer moving up over 8% on trading volume of 1,324,255 shares.

 

Through its operating subsidiaries and divisions, Safeguard is a single source security solutions provider, integrating technical and physical security assets. The company is organized along three distinct lines of business: Technical Systems, Security Personnel and Security Outsourcing Solutions.

 

Today’s SmallCapVoice.com Hot Stock to Watch:

 

GWS Technologies, Inc. (OTC BB: GWSC)

 

Last week GWS Technologies announced plans for a new solar farm in the Phoenix area as well as 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 on strong volume. The recent breakout in price and volume for GWS Technologies continues to garner serious market attention.

 

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