Stocks give up early gains as rising dollar hurts commodity prices; Dow falls 104 pointsNEW YORK (AP) -- A strengthening dollar and worries about an overheated market pounded stocks.
Stock indexes started higher Monday but turned sharply lower at midmorning as a rebound in the value of the dollar stalled a rally in commodities. Early gains in prices for oil and other commodities had pushed up shares of energy and materials companies.
The sharp swings in currency and commodities markets sent the Dow Jones industrial average whipsawing in a 200-point range, surrendering an early advance for a loss of 104 points. Stocks have fallen in four of the last five days.
"This is the tug-of-war that's been going on for a while now," said Samuel Dedio, portfolio manager of the Artio U.S. Smallcap Fund in New York, referring to sparring between the dollar and stocks.
Oil gave up early gains to settle down $1.82 at $78.68 per barrel on the New York Mercantile Exchange. That hurt the shares of major oil companies such as ConocoPhillips.
Changes in the dollar's value against other currencies frequently send commodities prices up or down. Since most commodities are priced in dollars they become more attractive to investors outside the U.S. when the dollar is weak, and more expensive when the dollar is strong.
Analysts also said some investors are looking to pocket gains after a stock market run that has stretched nearly eight months and brought share prices to their highest levels in a year. more...
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