US STOCKS-Markets rise on weak dollar, Fed stimulus talk

* Dollar pressure boosts equities after G20 meeting

* Commodities also benefit from greenback weakness

* September existing-home sales rise more than expected

* Dow up 0.4 pct, S&P up 0.4 pct, Nasdaq up 0.6 pct

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

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 continued after a weekend
meeting of the Group of 20 stopped short of setting targets to
reduce trade imbalances. Expectations the Fed will print money
to buy assets to stimulate growth have weakened the dollar,
which in turn has lifted commodity prices. For details, see
[ID:nTOE69M004] [ID:nTOE69K01G]

Freeport-McMoRan Copper and Gold Inc (FCX.N: ) advanced 2.1
percent to $96.06 while oil refiner Holly Corp (HOC.N: ) gained
3.2 percent to $33.29. The S&P materials sector (.GSPM: ) gained
2 percent.

Equities and the dollar have developed a strong inverse
relationship, so that as the dollar comes under pressure,
equities are boosted. Since the start of September, the S&P has
risen about 13 percent. For a Q+A, see [ID:nN2199257]

“Without much fundamental news, markets are just following
the dollar and the Fed’s comments,” said James Meyer, chief
investment officer at Tower Bridge Advisers in West
Conshohocken, Pennsylvania.

Meyer added that the lack of fundamental news could prompt
late-day profit-taking but “overall the tone remains quite

The Dow Jones industrial average (.DJI: ) was up 49.08
points, or 0.44 percent, at 11,181.64. The Standard & Poor’s
500 Index (.SPX: ) was up 4.81 points, or 0.41 percent, at
1,187.89. The Nasdaq Composite Index (.IXIC: ) was up 14.12
points, or 0.57 percent, at 2,493.51.

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.

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.

Both Office Depot Inc (ODP.N: ) and tobacco company Lorillard
Inc (LO.N: ) rallied after posting stronger-than-expected
profits. Office Depot also said that its embattled chief
executive would be stepping down, sending the stock up 6.3
percent to $4.92. Lorillard rose 2.1 percent to $85.85.
[ID:nN25221945] and [ID:nN25191964]

On the downside, RadioShack Corp (RSH.N: ) tumbled 8.1
percent to $20.98 on concerns about its stagnant core
electronics business. [ID:nN25253648]

Citigroup Inc (C.N: ) rose 1.5 percent to $4.17 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].
(Editing by Kenneth Barry)

US STOCKS-Markets rise on weak dollar, Fed stimulus talk