Friday, August 15, 2008

Stronger dollar brings higher stock prices

The dollar has had surprising strength in recent weeks. Today the Euro is worth less than $1.47 (down 12¢ in just a few weeks) & it takes over 110¥ to buy a dollar. The strong dollar has helped sink oil prices while sending stock prices north. Dow is up 54, but advancers are just barely ahead of decliners while NAZ is up only 7. Helping stocks is oil falling below 114. Lower oil prices are from increased awareness that slowing economies around the world will use less oil plus it's less desirable as a way to profit from a rising dollar. As oil goes, so goes the Alerian MLP index, down 1 to the 263s.

S&P 500 FINANCIALS INDEX

Value.....286.96__Change...up 4.34__% Change...up 1.5%

Financials are having another good day, maybe they're going to make another attempt to reach 302 resistance.

Sorry but there is more gloomy news on consumer confidence, rising to "only" 61.7 in July vs 61.2 in the prior month. Forecasts were for 62. Disappointing numbers dovetail with those early signals about a disappointing back-to-school retail selling season.

For lighter reading, here's an article about Warren Buffet's investment changes during Q2.

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