US STOCKS-Wall St trims gains as dollar strengthens

* Netflix, eBay jump after quarterly results

* Dollar gains as stocks come off their highs

* Dow up 0.4 pct, S&P up 0.2 pct, Nasdaq up 0.1 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates to afternoon)

By Angela Moon

NEW YORK, Oct 21 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) were slightly
higher on Thursday on strong corporate earnings, but the
indexes were well off their highs as the euro weakened and
commodity prices fell.

Blue chips McDonald’s Corp (MCD.N: ) and Travelers Cos Inc
(TRV.N: ) helped lift the Dow index after reporting
better-than-expected results.

Stocks rose nearly 1 percent earlier but the gains were
trimmed by afternoon trade as the U.S. dollar (.DXY: ) gained
ground. The dollar was up 0.3 percent against major currencies,
while the euro (EUR=: ) fell 0.2 percent.

The euro and the popularly traded S&P E-mini futures
contract have tracked each other closely in the last month. In
the last 22 sessions, they have had a positive correlation
coefficient of 0.89, implying a very strong relationship
between the two.

“You can basically trace the selloff in equities right back
to the way the dollar’s behaving,” said Craig Peckham, equity
trading strategist at Jefferies & Company in New York.

“It is largely a recurrence of that macro risk-on-risk-off
trade and the simplest barometer of that recurring environment
is expressed with the dollar.”

This action helps explain why the markets can seemingly
slough off the decline of Caterpillar (CAT.N: ), which is down
despite strong results. The stock fell 1.7 percent to $78.54,
but the S&P 500 industrial sector index (.GSPI: ) was up 0.6
percent.

The Dow Jones industrial average (.DJI: ) was up 44.27
points, or 0.40 percent, at 11,152.24. The Standard & Poor’s
500 Index (.SPX: ) was up 2.76 points, or 0.23 percent, at
1,180.93. The Nasdaq Composite Index (.IXIC: ) was up 3.00
points, or 0.12 percent, at 2,460.39.

Online auctioneer eBay (EBAY.O: ) rose 8.9 percent to $27.94.
Netflix, the movie rental and streaming service, jumped 12.1
percent to $171.69 after both reported upbeat results late
Wednesday. [ID:nN20228251] and [ID:nN20229905].

McDonald’s gained 1.8 percent to $78.81 after it beat
expectations for quarterly profit and same-store sales growth
in September.

Travelers’ shares gained 0.8 percent to $55.10 after the
largest publicly traded U.S. property casualty insurer easily
beat estimates as premiums rose in its personal insurance
lines. [ID:nN21165866] and [ID:nN21266849].

Bank of America (BAC.N: ) was the biggest decliner on the Dow
as investors worried about continuing foreclosure problems. The
stock was off 2.6 percent at $11.45.

Oil prices were down 2.3 percent to $80.64 a barrel. An
index of oil service stocks (.OSX: ) fell 0.5 percent.
(Reporting by Angela Moon, Editing by Kenneth Barry)

US STOCKS-Wall St trims gains as dollar strengthens