Newspaper article St Louis Post-Dispatch (MO)

Stocks Rise despite Higher Interest Rates

Newspaper article St Louis Post-Dispatch (MO)

Stocks Rise despite Higher Interest Rates

Article excerpt

U.S. stocks rose, bucking a decline in the bond market, as a barrage of economic reports convinced investors that higher rates have yet to dampen economic growth and corporate earnings.

Stocks also got a boost as the Federal Reserve Bank stepped in to prop up the weak dollar in an effort to stabilize financial markets.

"It's the same old story, the bond market kept the stock market on a leash for most of the day," said Thomas Gallagher, head trader at Oppenheimer & Co. "It wasn't until the Fed intervened that investors became more comfortable."

A falling dollar discourages foreign investors from owning U.S. stocks or bonds, as it reduces the returns on U.S. dollar-denominated investments. It also fuels concern about inflation - the bond market's enemy - because as the dollar falls, the prices of imported goods rise, traders said.

Shares of paper companies, which rise and fall in tandem with economic growth, rose as economic reports showed the rebound in the economy undeterred by higher rates. …

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