Markets were down across the board in trading this week. There were one or two days when markets rallied higher, but for the most part they dropped. The Dow opened the week on Tuesday, after the Memorial Day holiday, at 18,229.75 and closed on Friday at 18,010.68 for a loss of -219.07. The NASDAQ and S&P 500 performed similarly. The NASDAQ opened Tuesday at 5076.91 and closed the bumpy week down -6.88 points to 5,070.03. The S&P 500 opened at 2,125.34 and then closed Friday at 2,107.39, for a loss of -17.95 points.
GeekNet (GKNT) is this Week's Market Winner
After news of a buyout by teen clothing store Hot Topic (HOTT) broke, GeekNet (GKNT) stock shot up over 151% in 5 days. GeekNet opened on Tuesday at $8 per share, and closed on Friday as high as $19.90. The movement is all due to the acquisition by the popular clothing chain, which will feature GeekNet's products in all of their stores.
5 Hot Penny Stocks of the Week
This week was a hot one for micro and small-cap stocks, but we're only covering the penny stock currently trading for under $5 per share. Of that select group, we've got representation from across the entire market, from sectors as widespread as biotech, health services, heavy industry, and industrial chemicals. One Horizon (OHCI), which comes from the medical sector, led the week in gains with 130% growth. Share prices of One Horizon shot from less than $2 on Tuesday to close at $3.68 per share at the end of the day on Friday.
Cleveland Biolabs (CBLI) made a strong showing at #2 this week with posted 5-day gains of 50%. Share prices of Cleveland Biolabs have grown from $2 on Tuesday to nearly $3 at the close of Friday. Ceres Inc (CERE) posted 40% gains on the week, moving from $1.40 per share to $2.37. Oncothyreon (ONTY) and Flexible Solutions International (FSI) rounded out the top 5, posting gains of 14% and 23% respectively.
Euro Barely Bounced Back from Its Latest Fall
The Euro has been having a hard two weeks, as the world has watched the currency recover, then falter, then drop again. The Euro's recovery is going to be a long one, made even longer by the fact that some of the Eurozone member states are essentially insolvent.
What had been a slow but building recovery is now in tatters. While the US worries about small adjustments to the prime interest rate, the Eurozone is trying to figure out how to structure billions in debt that doesn't look likely to be paid anytime soon. While banks in the US will soon be raising interest rates by choice, banks on the continent will likely have to concern themselves with growing inflation.
The bottom line is that, what had been a promising recovery, has clearly stalled out over the course of this week. The Euro is back where it started, gaining slightly over Thursday and Friday, but still extremely weak. Analysts expect the Euro to remain fragile until some of the systemic problems are fixed in the Eurozone -- whenever that might be.
United Rentals (URI) Won't Stop Dropping After CEO Flub
After the CEO made an offhand mention of soft May sales numbers, United Rentals (URI) just hasn't stopped dropping. It's now fallen over -15% in the past 5 days. United Rentals started the week at $105 per share, and has since fallen -6.09 points to $88.91.
Globeimmune (GBI) is The Market's Big Loser
The small-cap pharma researcher had its landmark Hepatitis B drug fail in Phase II clinical trials. The pharmaceutical industry is notorious for having back-loaded profits, so a failure like this could have a big long-term impact on the small company. Unless Globeimmune (GBI) can get a related drug into trials, this line of research may turn out to be a costly bust.