Stocks rise on economy optimism, weak dollar
Stocks rose on Monday as continued optimism over the economy lifted energy and other commodity prices, which were also helped by a weaker U.S. dollar.
In a possible sign of healthier capital markets, private equity firm Blackstone Group
Blackstone shares rose 7.6 percent.
The U.S. dollar fell 0.5 percent against a basket of major currencies <.DXY>, continuing its recent weakness that has helped bolster U.S. stocks by lifting commodity prices and increasing the dollar value of repatriated export earnings of U.S. companies.
We are having a continuation of a commodity rally across the board, said Chad Morganlander, a portfolio manager at Stifel Nicolaus & Co in Florham Park, New Jersey. It is tied into the dollar weakness, but if you continue to see the global economy improve even with the dollar strengthening, you will see a bid persist for commodities.
Earlier on Monday Singapore said its export oriented economy grew by more than expected in the third quarter.
The Dow Jones industrial average <.DJI> gained 59.10 points, or 0.60 percent, to 9,924.04. The Standard & Poor's 500 Index <.SPX> added 3.57 points, or 0.33 percent, to 1,075.06. The Nasdaq Composite Index <.IXIC> rose 16.27 points, or 0.76 percent, to 2,155.55.
Commodity and energy companies such as Newmont Mining Corp
Black & Decker Corp
On Nasdaq, Google Inc
Crude oil pushed higher above $73 a barrel, extending last week's gains, helped by growing optimism about the pace of the global economic recovery and a positive demand forecast from the International Energy Agency.
U.S. stocks rose every day last week in their best weekly run in three months, and Dow industrials reached a new 2009 closing high on Friday. The S&P 500 is up around 60 percent from March lows.
(Editing by Padraic Cassidy)
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