Industrials and Materials Fuel Rise In US Stocks (CVX, CAT, HD, AIG, M)
November 11, 2009 11:53 AM
The Dow Jones Industrial average rose 0.5% to 10294, the S&P 500 rose to 1099 gaining 6 points, and the Nasdaq Composite gained 0.7% to 2165. Dow Jones’ stock Caterpillar (NYSE: CAT) and Chevron (NYSE: CVX) rose 1.13% and 0.86% respectively as the rise in commodity prices help both stocks. Home Depot (NYSE: HD) also rose to 1.86% to $27.31 today.
The stocks moved higher as the dollar fell after US Treasury Secretary Tim Geithner stating that maintaining a strong dollar is very important for economy of the US. Furthermore, the president of the Federal Reserve Bank of Dallas, Richard Fisher has stated that the extended period of low rates was denting the dollar. Stocks went up as investors started selling the dollar and buying stocks with the proceeds.
Despite the increase in US Stocks, Financials weighed down gains led by American International Group (NYSE: AIG) which fell 3.25% after Chief Executive Robert Benmosche threatened to quit. Poor earnings from retailer Macy’s Inc. (NYSE: M) also slowed down stocks as the shopping mall company fell 7.26%.
