Market Roundup (ITW, ITB, RYL, KBH, BZH, TOL, AEP)

The US dollar surged the most since August against a basket of major global currencies, after China lifted lending and deposit rates. The dollar index (DXY) gained 1.31% to 77.94, up from 76.922 in North American trading late Monday. The euro lost about 0.9896% against US dollar.

Shares of Illinois Tool Works Inc (NYSE: ITW) dipped about 5.5% after the company reported its Q3 results. The company posted its Q3 earnings at $0.83 per share, up from $0.60 per share, in the year-ago period. However, analysts were expecting profit of $0.82 per share.

US Home-builder stocks moved up, with the iShares Dow Jones US Home Construction Index Fund (NYSE: ITB) gaining about 1.41%, after the Commerce Department reported rise in the US housing starts in September. Some of the other gainers in the list were Ryland Group Inc (NYSE: RYL), KB Home (NYSE: KBH), Beazer Homes USA Inc (NYSE: BZH) and Toll Brothers Inc (NYSE: TOL). David Crowe, chief economist at the National Association of Home Builders said, "Today's numbers are in line with our latest builder surveys, which indicate that stability is slowly returning to the new-homes market following the declines we saw upon expiration of the home buyer tax credits and the slowing of economic growth this summer."

Shares of American Electric Power Co (NYSE: AEP) gained about 1.3% after the company reported 25% y/y rise in its Q3 profit. The company's revenue also surged 17% y/y to $4.1 billion. The company's quarterly earnings surpassed the analysts' expectations. The management would propose AEP's board of directors to lift its quarterly dividend, to $0.46 per share from $0.42 per share. Michael Morris, AEP's chairman and CEO said, “We have seen improvement in the industrial sector from the lows of 2009 but demand in other sectors is essentially flat.”

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