US dollar and oil prices—two driving factors—to affect stocks Tuesday, according to experts. Oil increased over six percent on Monday, helping the increase in the stock market as the energy sector, S&P jumped up to 1.8 percent. On the other hand, the US dollar opened the day lower, but was a driving force on stock market gains even if it edged higher but finished with unchanged value.
Wunderlich Securities’ chief analyst, Art Hogan, said that the US dollar and oil prices are catalysts that would be with them, although they were not getting any real economic news. But he added that what the dollar was telling them is that there would be more stability. He furthered that the Euro-Dollar range now is of $1.06 – $1.10.
However, the increase in dollar has been negatively affecting the stocks because it might dent the earnings of the multinationals. In this connection, falling oil prices and the dollar have been both significant factors behind about three percent of decline in earnings in the current quarter—the first ever drop in a period of six years.
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