Dollar index hits highest since April; S&P 500 up slightly
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 Amazon.com (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...