Markets Extend Gains On Commodity Stocks
The stock market rally is continuing for the third consecutive day. Austerity measures in Greece were voted through this morning. This was widely anticipated but is still being cheered by Wall Street. The market is moving higher today mainly because of the rise in the Euro. The Euro is jumping as Greece will no longer default on debt, saving the European economy for now. As the Euro moves higher, the Dollar moves lower. The CurrencyShares Euro Trust (NYSE:FXE) is trading at $143.70, +0.60 (+0.42%). In response, the PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.33, -0.12 (-0.56%).
As the Dollar weakens, oil is surging higher. United States Oil Fund LP (ETF) (NYSE:USO) is trading at $37.50, +1.08 (+2.97%), As oil rallies, major components of the Dow Jones Industrial Average are rallying the market. Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) are both solidly higher. In addition, other commodity related stocks are surging today. United States Steel Corporation (NYSE:X) is trading at $46.00, +2.69 (+6.21%).
It is clear that Wall Street is having a rally today on the back of commodity plays. This is coming from the weakness in the U.S. Dollar.