September 30th, 2010
10:57 PM ET

Dollar slips while stocks post September in decades

A look at headlines from today's business news:

Stocks post best September in 71 years 
U.S. stocks fizzled Friday, but that didn't stop the market from logging its best September in decades.

Dow Jones industrial average slipped 47 points, or 0.4 percent, after soaring more than 100 points at the start of trading. The S&P 500 fell 4 points, or
0.3 percent, and the Nasdaq ticked down 8 points, or 0.3 percent.

Economic jitters have kept stocks from breaking out of a narrow range this week. And while upbeat readings on employment and economic growth helped spark an early rally Thursday, gains subsided as worries about the euro zone bubbled up.

Despite the stomach churning month, stocks ended September with strong gains. The Dow jumped 7.7 percent, the biggest September gain in 71 years. The S&P also posted the biggest gain since 1939, rising 8.7 percent in the month, while the Nasdaq climbed 12 percent.

Treasury yields inch higher on upbeat economic news 
Treasury yields were mostly higher Thursday after better-than-expected news on economic growth, the job market and business activity reduced demand for the safety of U.S. government debt.

The yield on the benchmark 10-year note rose to 2.52 percent from 2.50 percent late Wednesday. The 10-year yield had spiked as high as 2.60 percent earlier in the session. The yield on the 30-year bond edged up to to 3.69 percent. Meanwhile, the yields on the 5-year and the 2-year notes held steady at 1.28 percent and 0.44 percent respectively.

Investors initially fled Treasurys and pushed yields higher as reports showed that the economy grew at a slightly better pace during the second quarter than previously estimated, fewer American filed claims for unemployment insurance last week and business activity unexpectedly rose during the month.

Uncertainty reigns as dollar languishes 
The dollar continued to slide this week, as market uncertainty and worries about intervention by Japan and the United States held the currency market hostage.

The dollar index, which gauges the greenback against a basket of currencies, retreated to a low of 78.1, a level not seen since February. That's down from 83.2 at the beginning of the month, and far below the June high above 88.

But it's not a huge surprise that September has been a lackluster month for the dollar. Hedge funds and other big money investors typically pour money into commodities following Labor Day, said Michael Woolfol, senior currency strategist at Bank of New York Mellon. That can take its toll on the U.S. currency, since commodities like gold, oil and grains are priced in dollars.

- reporters Blake Ellis, Hibah Yousuf and Charles Riley contributed to this report.

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Filed under: Economy • Uncategorized
soundoff (One Response)
  1. Michelle

    For the 2nd time, your headline makes no sense. Please edit.

    October 1, 2010 at 3:23 am | Report abuse |