US STOCKS-Dollar weakness, Fed stimulus talk lift market

* Dollar pressure boosts equities after G20 meeting

* Commodities also benefit from greenback weakness

* 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 midday, changes byline)

By Ryan Vlastelica

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
Federal Reserve prompted investors to buy riskier assets.

The slide in the greenback set the tone after a weekend
meeting of the Group of 20 stopped short of setting targets to
reduce trade imbalances. The dollar has been sliding broadly,
and commodity prices climbing, on expectations that the Fed
will print money to buy assets to stimulate growth. For
details, see [ID:nTOE69M004] [ID:nTOE69K01G]

“The dollar is creating a high degree of excitement across
the commodity space and making it one of the strongest parts of
the market today,” said Tom Samuels, managing partner at
Palantir Capital Management in Houston.

Freeport-McMoRan Copper and Gold Inc (FCX.N: ) advanced 2.8
percent to $96.62 while oil refiner Holly Corp (HOC.N: ) gained
3.1 percent to $33.25. The S&P materials sector (.GSPM: ) gained
2.1 percent.

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. Since the start of
September, the S&P has risen about 13 percent. 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.

“We’ll see if the Fed can buy our way out of this, but
right now optimism about that is definitely creating a buoyancy
that’s driving the market,” Samuels said.

The Dow Jones industrial average (.DJI: ) was up 69.03
points, or 0.62 percent, at 11,201.59. The Standard & Poor’s
500 Index (.SPX: ) was up 6.90 points, or 0.58 percent, at
1,189.98. The Nasdaq Composite Index (.IXIC: ) was up 17.91
points, or 0.72 percent, at 2,497.30.

Existing-home sales rose more than expected in September,
the National Association of Realtors said, lifting the Dow
Jones U.S. Home Construction index (.DJUSHB: ) 1.4 percent. D.R.
Horton Inc (DHI.N: ) advanced 2.5 percent to $10.87.
[ID:nN25264142]

In earnings news, both Office Depot Inc (ODP.N: ) and tobacco
company Lorillard Inc (LO.N: ) rallied after posting
stronger-than-expected profits. Office Depot was up 7.8 percent
to $4.99 while Lorillard gained 2.1 percent to $85.83.
[ID:nN25221945] and [ID:nN25191964]

But RadioShack Corp (RSH.N: ) tumbled 8 percent to $20.98 on
concerns about its stagnant core electronics business.
[ID:nN25253648]

Citigroup Inc (C.N: ) rose 1.7 percent to $4.18 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].
(Reporting By Ryan Vlastelica; Editing by Kenneth Barry)

US STOCKS-Dollar weakness, Fed stimulus talk lift market