Stocks climb in early trading as dollar weakensNEW YORK (AP) — Stocks surged in early trading Monday as the dollar continues to weaken and investors try to snap a three-day losing streak.
By: STEPHEN BERNARD,AP Business Writer, Worthington Daily Globe
NEW YORK (AP) — Stocks surged in early trading Monday as the dollar continues to weaken and investors try to snap a three-day losing streak.
The falling dollar pushed prices for gold, oil and other commodities sharply higher, boosting energy and material stocks. A weaker dollar makes commodities cheaper for foreign buyers. Bond prices fell as investors clamored for stocks and riskier assets.
The dollar retreated as Federal Reserve official James Bullard said the central bank should continue to buy mortgage-backed securities after the program is supposed to expire in March. That would continue to keep interest rates low.
Investors will get plenty of economic data during the holiday-shortened week to sort through and determine if the stock market's rally has outpaced any actual recovery in the economy. Later Monday morning, the National Association of Realtors will issue a report on October home sales.
Worries about the strength of the recovery dogged the market last week and sent stocks mostly lower. Multiple reports on the housing market and strength of the consumer as well as data on the nation's total economic output in the third quarter will be released before the Thanksgiving holiday Thursday.
Overseas markets also showed strength Monday. European stocks rose sharply after new data showed the economic recovery is gathering pace in the 16 countries that use the euro.
In early trading, the Dow Jones industrial average rose 148.28, or 1.4 percent, to 10,466.44. The Standard & Poor's 500 index rose 18.30, or 1.7 percent, to 1,109.68, while the Nasdaq composite index rose 36.88, or 1.7 percent, to 2,182.92.