The Return of the Strong Dollar Market

Markets fell slightly in a strong dollar day, as retail and banking lead the way to the bottom. The Dow lost -53.72 to close at 18,232.02, while the NASDAQ closed down -1.43 to 5,089.36. The S&P 500 dipped -4.76 points to end the day's trading at 2,126.06.

In overseas trading today, Germany's DAX fell -48 points but the rest of the world was largely up. The Hang Seng boomed, adding on 450 points. Japan's Nikkei rose by 61, and London's FTSE was up 18.

Bond Yields Rise Again As Dollar Restarts Recovery

Bond yields were up again today, and 10-year Treasury notes inched up another 0.03% on the day to close at 2.23%.
Long-term notes were up as well, with a 30-year note finally topping 3% for the first time in months. Analysts predict that this will be a continuing trend over the summer, like it usually does, where the strong dollar will help to feed into the traditional “slow summer” market stagnation.

False Starts Over the Spring and Fall

This isn't the first time that the dollar has begun to creep up. There were numerous fits and starts in the past few months, and no guarantee that this won't just be another of them. The fact is, though, that much of the economies of the world are struggling with high unemployment and massive debt, and America is in better shape than most.

Commodities Steady for Now

One of the concerns that people have when it comes to a strong dollar is exactly how it will impact the commodities markets. It's true that a strong dollar makes export goods more expensive, and nowhere is that more evident than in commodities. Items that we export, like corn and wheat, have generally been on the rise, although they slipped -1.37% and 0.15% today, respectively. Import commodities like cocoa should fall in price, and in fact cocoa futures were down -$28.00 per metric ton today.

Quest Diagnostics (DGX) Up 7.75% In Trading Today

The Health Services sector is still booming, and companies like Quest Diagnostics (DGX) are the evidence. Quest has beat the sector and posted 11% gains over 5 days, including a big 5.72 point gain today. Quest closed the day at $79.60 per share.

NetApp (NTAP) Recovers Slightly

Yesterday was especially tough on computer peripheral manufacturer NetApp (NTAP), but the company fought back today. NetApp bounced back over 4% in trading today, adding 1.37 points to close the day at $33.14.

Best Buy (BBY) Can't Hold Onto Thursday's Gains

After a few days of gains, Best Buy (BBY) fell today. The big box electronics retailer was down over -2%, falling -0.78 points to close at $34.33. Best Buy settled back to where it was earlier in the week, completely erasing Thursday's gains.
Published on May 22, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2016. Content published with author's permission.

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