Stocks Gain While Dollar Reaches Highest Level Since 2010
The U.S. dollar is the strongest it has been since June 2010, according to the U.S. Dollar Index.
After breaking above 85 resistance, the currency rallied to 85.12. Strength is coupled with record high stock prices, strong bonds and weak commodities.
- The Dow Jones Industrial Average rose 154.2 points, or 0.9 percent, to 17,210.
- The S&P 500 climbed 15.5 points, or 0.78 percent, to 1,998.
- The Nasdaq Composite gained 46.5 points, or one percent, to close at 4,555.
Oil is trading much lower than it had in recent months. OPEC stated it expects prices to rise, but Iran says it expects additional downside. The director at National Iranian Oil Company says prices could fall as low as $90 per barrel.
Apple (NASDAQ: AAPL) is under pressure after several owners of the iPhone 6 Plus have reported that the device is bending in their pockets. Investors are still waiting for Apple to respond to allegations.
Shares of Acorda Therapeutics (NASDAQ: ACOR) got a boost, shooting up 28.2 percent to $37.62 after the company announced its plans to acquire Civitas Therapeutics.
Bed Bath & Beyond (NASDAQ: BBBY) shares were also up, gaining 7.4 percent to $67.33 after the company reported stronger than expected second quarter results and issued a forecast slightly ahead of the estimates.
Shares of GrafTech International (NYSE: GTI) were down 31.9 percent to $4.96 after the company lowered its FY14 forecast and announced several executive management changes.
Egalet (NASDAQ: EGLT) was down, falling 28.6 percent to $6.65 after the company announced an update on clinical development plan for abuse-deterrent morphine Egalet-001.
Often moving inverse to equities, gold futures gave up ground as stocks charged higher. At $1,216.27, the commodity is within $7 of making an eight-month low. The contracts are down 0.4 percent on the session.
Crude, on the other hand, was especially strong Wednesday. WTI futures gained 1.66 percent to $93.08. Brent futures rose 0.34 percent.
Some Asian markets were closed in observance of the Autumn Equinox holiday Tuesday night, including Hong Kong. The Shanghai index rose 1.47 percent and Japan’s Nikkei fell 0.24 percent.
European markets trended higher Wednesday, driven by Draghi’s dovish comments. The Euro Stoxx Index rose 1.19 percent, The CAC added 1.25 percent and the FTSE jumped 0.45 percent.
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