U.S. stocks lower despite surprisingly strong Amazon earnings, as signs of slower global growth weighed.
The major averages extended losses, breaking through support levels of about 2,088 on the S&P500 and 17,600 on the DJI.
The Dow Jones industrial average fell more than 150 points as Goldman Sachs declined and Chevron and Exxon Mobil hit multi-year lows with the continued decline in oil.
Another look at penny stock picks.
Stocks closed down on Wednesday as tech earnings weighted down on the major indices.
Nasdaq briefly fell more than 1% in the open before ending about 0.5 percent lower. The S&P and the Dow remained in negative territory throughout the session, with blue-chip stocks falling over 100 points at their lows.
You’ve most likely heard about penny stocks from advertisements you’ve read on the Internet or from emails you’ve received. If you’ve got some extra money that you’d like to put into the market to generate big returns, you may want to consider small-cap and micro-cap stocks. These stocks can be very risky, though, so you have to know how to trade them well.
Penny stocks (small caps) are winners again. They are even beating big stocks.
The Russell 2000, the most quoted small cap index is up over 6.5% this year. In contrast, the Dow and the S&P 500 are basically breakeven.
Small cap stocks are back in fashion for two main reasons: they aren’t hurt much by the strong dollar or the sluggish global economy.
A strong dollar cuts into profits and makes it harder to export goods made in America. But small companies don’t have that problem. They do most, if not all, of their business in the U.S. On average, the companies in the S&P 500 get 40% of their revenues from overseas.
More penny stock picks.
In the 2nd quarter, the Euro-Zone quivered, as Greece sparred with its creditors. In China, the stock market sank. U.S. markets fell only slightly, with small-cap and growth stocks showing gains and propelling mutual funds that focus on them.
A commitment to buying what Richard H. Gould, a portfolio co-manager, called “pure growth companies” produced two second-quarter standouts for Turner Investments — Turner Small Cap Growth Fund and Turner Emerging Growth Fund. Emerging Growth invests in stocks with a broader span of market capitalizations, Mr. Gould said. Small Cap Growth typically buys only companies with market capitalization of less than $2 billion.
Continue reading at the New York Times