Dollar index hits highest since April; S&P 500 up slightly

Tue Nov 10, 2015 5:16pm EST
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By Caroline Valetkevitch

NEW YORK (Reuters) - The U.S. dollar index touched its highest since April on Tuesday on growing expectations the Federal Reserve will raise interest rates next month, while U.S. stocks ended up after a late-session bounce.

Oil prices ended higher, rebounding after the International Energy Agency estimated investment in oil would slump more than 20 percent this year, a trend it saw continuing into 2016.

Consumer discretionary shares including (AMZN.O: Quote) bolstered the S&P 500, though a drop in Apple (AAPL.O: Quote) limited the index's advance. World stock indexes slipped as persistent global growth concerns weighed on sentiment.

A bigger-than-expected fall in Chinese inflation following disappointing trade figures over the weekend underlined the problems in an economy that has driven world growth for a decade. But the data also added to expectations of more stimulus measures from Beijing to counter any slowdown.

Equities investors also were preparing for a possible Fed rate hike in December. Friday's strong U.S. jobs report boosted expectations the Fed will raise rates next month.

"We could face a little more of this kind of trading as we see people position around the idea of a rate increase," said Kurt Brunner, a portfolio manager at Swarthmore Group in Philadelphia. "Over the next couple weeks it could be a little sloppy before we head into Thanksgiving."

The Dow Jones industrial average .DJI rose 27.73 points, or 0.16 percent, to 17,758.21, the S&P 500 .SPX gained 3.14 points, or 0.15 percent, to 2,081.72 and the Nasdaq Composite .IXIC dropped 12.06 points, or 0.24 percent, to 5,083.24.

Apple shares fell 3.2 percent to $116.77 after Credit Suisse said the iPhone maker had lowered component orders by as much as 10 percent.   Continued...

Traders work on the floor of the New York Stock Exchange November 6, 2015. REUTERS/Brendan McDermid