US STOCKS-Wall St set to open slightly lower as dlr slides

* Dollar index hits lowest level since Dec

* Initial claims, PPI up more than expected

* Futures: Dow off 16 pts, S&P off 1.2 pts, Nasdaq up 0.5

* For up-to-the-minute market news see [STXNEWS/US]
(Adds data, Grainger earnings)

By Chuck Mikolajczak

NEW YORK, Oct 14 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) were poised to
open slightly lower on Thursday after the dollar index (Read more about the global trade. ) dropped
to its lowest point this year and jobless claims unexpectedly
rose.

The U.S. dollar index (Read more about the global trade. ) hit a low for the year while the
Australian dollar flirted with parity after Singapore widened
its currency’s trading band, piling more pressure on the
struggling greenback.. For details, see [ID:nLDE69D1AZ]

The dollar has been burdened by expectations of more U.S.
Federal Reserve stimulus, especially after the central bank
indicated it may again flood markets with cheap cash “before
long” to boost growth. [ID:nN12188145]

“The dollar is the catalyst here. This is a pretty big
break at this level. We were holding slightly below 78, then
you are getting another leg down,” said Marc Pado, U.S. market
strategist, Cantor Fitzgerald & Co. in San Francisco. The
dollar index (Read more about the global trade. ) (.DXY: ) fell 0.6 percent at 76.592.

“This kind of a move puts pressure on the Fed to basically
accommodate the market. If they don’t accommodate the markets,
they know what the reaction is going to be, and that’s not what
they want to see,” Pado added.

The prospect of additional Fed stimulus has created an
inverse correlation between the dollar and equities, with a
decline in the greenback sparking a move into equities.

S&P 500 futures (SPc1: ) dipped 1.2 points and were slightly
below fair value, a formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration
on the contract. Dow Jones industrial average futures (DJc1: )
lost 16 points, and Nasdaq 100 futures (NDc1: ) advanced 0.5
point.

Futures trimmed gains after government data showed new
claims for unemployment insurance rose more than expected in
the latest week, while rising food and energy prices pushed
inflation at the wholesale level up twice as fast as forecast
last month. [ID:nN13264577] and [ID:nN13264713]

Several private equity firms have approached Internet and
media companies, including News Corp (NWSA.O: ) and AOL Inc
(AOL.N: ), about buying Yahoo Inc (YHOO.O: ), a source said. Yahoo
jumped 12.4 percent to $17.14 premarket. [ID:nN13281610]

Industrial distributor WW Grainger Inc (GWW.N: ) posted
quarterly profits that topped estimates and raised its forecast
for the full year. Still, shares dipped 1.6 percent to $123.25
premarket. [ID:nSGE69D0FX]

Google Inc (Read more about Google Stock Analysis) (GOOG.O: ) and Advanced Micro Devices Inc (AMD.N: )
are due to report results later in the day.
(Editing by Jeffrey Benkoe)

US STOCKS-Wall St set to open slightly lower as dlr slides