REFILE-US STOCKS-Wall St rises on dlr weakness, stimulus talk

(Fixes typo in first paragraph)

* Dollar pressure boosts equities after G20 meeting

* September existing home sales rise more than expected

* Dow up 0.6 pct, S&P up 0.6 pct, Nasdaq up 0.7 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midmorning)

By Leah Schnurr

NEW YORK, Oct 25 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) rose on Monday as
a weak dollar and expectations of economic stimulus from the
U.S. Federal Reserve prompted investors to pick up riskier
assets.

The lagging greenback set the tone early in the day after a
weekend meeting of the Group of 20 stopped short of setting
targets to reduce trade imbalances. The greenback slid broadly,
while commodity prices climbed. For details, see
[ID:nTOE69M004] and [ID:nTOE69K01G]

Equities and the dollar have developed a strong inverse
relationship, and growing speculation the Fed will extend
monetary easing at its next meeting in November has pressured
the dollar while boosting equities. For a Q+A, see
[ID:nN2199257]

In a research report, Goldman Sachs said the Federal Open
Market Committee is almost certain to announce renewed monetary
easing at its Nov. 2-3 meeting.

Goldman analysts calculated the Fed may have to buy up to
$4 trillion in assets to achieve desired growth and inflation
targets. They forecast the Fed’s second round of quantitative
easing will likely be worth $2 trillion.

“The quantitative easing talk has hurt the dollar, helped
the equity market and created this risk-taking environment,”
said Nick Kalivas, senior equity index analyst at MF Global in
Chicago.

“It’s creating this idea it’s going to be positive for
asset inflation, so equities should benefit from that. There’s
a reluctance to sell the market in the face of that possibility
in front of that meeting … “

The Dow Jones industrial average (.DJI: ) gained 71.18
points, or 0.64 percent, to 11,203.74. The Standard & Poor’s
500 Index (.SPX: ) rose 7.20 points, or 0.61 percent, to
1,190.28. The Nasdaq Composite Index (.IXIC: ) climbed 17.15
points, or 0.69 percent, to 2,496.54.

Resource shares led the way higher on the back of the
rising commodity prices. Freeport-McMoRan Copper and Gold Inc
(FCX.N: ) advanced 2.8 percent to $96.62, and the S&P materials
sector (.GSPM: ) gained 2.1 percent.

Citigroup Inc (C.N: ) was up 2.4 percent at $4.21 after
Goldman Sachs added the stock to its “conviction buy list,”
saying the big bank faced limited mortgage loan repurchase risk
compared with its peers. [ID:nSGE69O0E9]

In a light day for economic data, sales of previously owned
U.S. homes rose more than expected in September, the National
Association of Realtors said, helping equities extend gains.
[ID:nN25264142]
(Editing by Jeffrey Benkoe)

REFILE-US STOCKS-Wall St rises on dlr weakness, stimulus talk