The dollar rebounded after falling to a 15-year low versus
the Japanese yen and an all-time low against the Swiss franc on the prospect of
more money-printing by the Fed to prop up the economic recovery.
The usual correlation between the euro and equities — with
both rising at the same time — is based on expectations for Europe’s economies.
But the most recent movement in tandem is being based on the momentum behind
the paired move, not economic fundamentals.
“Everybody is trying to play this quantitative easing idea:
what are the central banks going to do. That certainly feels like part of it,”
said Kevin Kruszenski, head of listed trading at KeyBanc Capital Markets in
Cleveland.
The Dow Jones industrial average shed 13.06 points, or 0.12
percent, at 10,954.59. The Standard & Poor’s 500 Index lost 2.17 points, or
0.19 percent, at 1,157.80. The Nasdaq Composite Index dipped 6.24 points, or
0.26 percent, at 2,374.42.
The latest economic data helped stocks early in the session.
Initial claims for unemployment benefits dropped to their lowest since the July
10 week, the Labor Department said.
The data came ahead of Friday’s key non-farm payroll report
from the Labor Department, which is expected to show companies added 75,000
jobs in September.
The S&P retail index rose 0.7 percent as teen apparel
retailers led generally stronger-than-expected same-store sales in September.
Abercrombie & Fitch Co jumped 10.3 percent to $42.60,
and American Eagle Outfitters Inc (climbed 7 percent to $16.08.
Alcoa Inc. is due to kick off the third-quarter earnings
season after the closing bell. The US aluminum group was expected to post a
modest third-quarter profit. Alcoa slipped 0.4 percent to $12.43.
