Stocks fell Friday after the Commerce Department reported that personal spending, incomes and savings all rose in May. What troubled investors, though, was that the savings rate soared to 6.9 percent, a 15-year high, while spending rose by a modest 0.3 percent.
The trend suggests consumers are being extremely careful with their money. But it's not great for the overall economy in the short-term.
In positive news, the University of Michigan reported a rise in consumer sentiment in June. Analysts had anticipated a flat reading.
Gross domestic product dropped at an annual rate of 5.5 percent in the first quarter, the government reported earlier this week. As the second half of 2009 draws to a close, investors are growing more anxious about whether the economy can bounce back later this year.
That uncertainty has led to a choppy week in the stock market. After four straight days of losses, the Dow Jones industrial average rebounded by 2.1 percent on Thursday. Traders appeared eager to take some profits from that jump ahead of the weekend, analysts said.
In midmorning trading, the Dow Jones industrial average fell 49.58, or 0.6 percent, to 8,422.82. The Standard & Poor's 500 index fell 4.95, or 0.5 percent, to 915.31. The Nasdaq composite index fell 7.09, or 0.4 percent, to 1,822.45.
Yesterday’s Top Performing Small Cap stock:
Octus Energy (OTCBB: OCTI) was a SmallCapVoice.com top performer moving up 25% on trading volume of 53,500 shares.
Octus Energy announced the creation of the Octus Smart Energy Alliance. The alliance enables Octus and its partners to collaboratively deploy energy efficiency and demand response solutions, leveraging the Octus Smart Energy Platform (OctusSEP), to generate immediate energy savings for commercial, industrial and public sector organizations.
"The Smart Energy Alliance enables partners to deliver a proven, turnkey smart energy platform to their existing and prospective clients," explained Octus Director of Energy Projects and Finance John Argo. "Octus helps partners grow their smart energy business, while continuing to do what they do best in delivering energy products and services. The opportunity is immense, and the time to act is now."
Octus is partnering with complementary energy companies to integrate best-in-class energy efficiency products and services with OctusSEP. The platform eliminates up-front system costs for clients through Octus project financing, and creates recurring revenue for partners.
Today’s SmallCapVoice.com Hot Stock to Watch:
TIE Technologies, Inc. (Pink Sheets: TTCS)
A New Audio Interview Featuring TIE Technologies, Inc. Executive Vice President, Graham Mew, is now at SmallCapVoice.com. The interview can be heard at http://smallcapvoice.com/blog/6-25-09-audio-interview-with-tie- technologies-inc-otcpk-ttcs/
TIE Technologies is a systems integration and telecommunications company focused on engineering and delivering innovative solutions for user's needs and challenges within the dynamic global voice, video and data communications markets. The company offers managed IT and telecommunication services to solve a myriad of complex client requirements. Services and solutions include out sourced and internal server, applications hosting, managed hosting and related systems management services, database hosting, content delivery networks, data broadcasting networks, and voice and video solutions providers.
Small Cap stocks making news:
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