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Newhampshire News Online

U.S. Stocks Rebound as Dollar Declines; Bonds Erase Gains

U.S. Stocks Rebound as Dollar Declines; Bonds Erase Gains

U.S. stocks rebounded from a two-day selloff as banks rallied and a drop in retail sales bolstered the case for keeping interest rates low. Treasuries erased gains after a bond sale and the dollar fell from a 12-year high against the euro.AP WALL STREET F USA NY

The Standard & Poor’s 500 Index added 1 percent at 1:23 p.m. in New York, after losing 1.9 percent in the previous two sessions. The dollar dropped 0.5 percent to $1.060 per euro. The yield on 10-year Treasuries rose less than 1 basis point to 2.12 percent. The Stoxx Europe 600 Index fell less than 0.1 percent. Shares in Shanghai climbed to a six-week high and copper advanced for the first time in three days as China’s credit growth exceeded economists’ estimates.

Sales at U.S. retailers unexpectedly fell in February for a third consecutive month, while jobless claims decreased more than forecast, reports showed Thursday. Speculation that the Federal Reserve is moving closer to increasing interest rates as counterparts in Europe and Asia ease policy sent the Bloomberg Dollar Spot Index up 3.6 percent in the past six days.

“I think this is a question of the bad news is good news, which is a reversal of what we had Friday when we got killed,” Donald Selkin, the chief market strategist at New York-based National Securities, which oversees $3 billion, said of the retail sales report in a phone interview. “The only reason it’s good is in policy because it throws a wet blanket over the surety of them raising rates.” Retail sales dropped 0.6 percent following a 0.8 percent decrease in January, Commerce Department figures showed. The median forecast of 86 economists surveyed by Bloomberg called for a 0.3 percent gain.