Dollar falls, but U.S. markets like Facebook gains

Posted July 25, 2013, at 5:44 p.m.

NEW YORK — The dollar and global equity markets fell on Thursday after mixed corporate earnings and renewed worries about growth in China weighed on investor sentiment, but a 30 percent jump in Facebook Inc. shares lifted U.S. stocks from the doldrums.

Facebook posted its biggest single-day percentage gain ever a day after the world’s No. 1 social network reported a better-than-expected surge in mobile advertising.

Facebook was the most actively traded Nasdaq-listed share, surpassing the second-most active by 4 to 1, in volume that was the heaviest since its marred IPO more than a year ago.

The late-day U.S. stock rally came as global equity markets fell after profit warnings in Europe by German heavyweights BASF and Siemens. Corporate America’s earnings for the most part have failed to impress, even as General Motors and Dow Chemical Co. posted strong results.

The Dow Jones industrial average closed up 13.37 points, or 0.09 percent, to end at 15,555.61. The Standard & Poor’s 500 Index rose 4.31 points, or 0.26 percent, to finish at 1,690.25. The Nasdaq Composite Index gained 25.59 points, or 0.71 percent, to close at 3,605.19.

The dollar fell against the euro and the yen as investors saw positive economic news in Europe, but a rise in U.S. business spending plans for a third straight month in June was not enough to drive the U.S. currency.

The benchmark 10-year U.S. Treasury note was up 1/32 to yield 2.579 percent.

The euro was near a one-month peak in New York trading after the German Ifo survey. The influential think tank’s business climate index rose to 106.2 in July from 105.9 a month ago, just ahead of forecasts of a 106.1 reading.

The dollar index fell 0.7 percent to 81.683, while the euro rose to $1.3295, the highest since June 20, and was last at $1.3291, up 0.7 percent.

The dollar fell 1.2 percent against the yen to 99.04 yen.

 

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