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US stocks higher on dollar fall | US stocks higher on dollar fall |
(about 5 hours later) | |
(Close): US shares made strong gains on Thursday, ending two consecutive days of falls. | |
The Dow Jones added almost 260 points, or 1.5%, to end at 17,635.39, after a weaker dollar helped assuage the market's fears of lower corporate profits and a sooner-than-expected interest rate rise. | |
The S&P 500 added 26 points, or 1.3%, closing at 2,065.95, while the Nasdaq rose 0.9%, or 43 points to 4,893.29. | |
The dollar fell 0.86% against the euro. | |
One US dollar now buys €0.94. | |
Some market-watchers were concerned that a strong dollar could negatively impact US firms, whose overseas earnings may be worth less after currency conversions. | |
Additionally, a strong dollar could make it more difficult for companies to compete with foreign rivals, who may be able to offer cheaper products. | Additionally, a strong dollar could make it more difficult for companies to compete with foreign rivals, who may be able to offer cheaper products. |
Intel was the biggest faller on the Dow Jones, after it warned that firms weren't upgrading their computers. Shares in the firm fell more than 4% on the warning. | |
However, shares in Walt Disney were up by 4.16% following news that the studio is developing a sequel to box office juggernaut Frozen. | |
Toy-maker Mattel, which currently owns the license to sell Frozen products, saw its shares rise by 4.2%. | |
Winter woes | Winter woes |
Weaker-than-expected February retail sales, which dipped by 0.6% - the third straight month of declining sales - cheered some market watchers, who worry that the Federal Reserve will be forced to raise interest rates sooner rather than later as the US economy improves. | |
Analysts blamed frigid temperatures across most of the northeast for the sales dip. | |
However, most analysts don't expect retail sales to remain muted for much longer. | However, most analysts don't expect retail sales to remain muted for much longer. |
"The consumer fundamentals are solid - lower energy prices, well received employment reports, stronger real disposable income growth, and elevated consumer confidence," said IHS Global Insight economist Chris Christopher in a note to clients. | "The consumer fundamentals are solid - lower energy prices, well received employment reports, stronger real disposable income growth, and elevated consumer confidence," said IHS Global Insight economist Chris Christopher in a note to clients. |
"We expect consumers to come out swinging in March. Much of the lost sales in February will be made up in March." |