While earnings all disappointed last night and this morning it is the stronger U.S. Dollar Index that has deflated the stock market today. Very few people are talking about China raising their benchmark interest rate by 25 basis points. This action by China would likely slow down there economy which is telling the United States that they are not happy with the daily dollar decline that has been taking place everyday. After all China is the largest debt holder of the Unites States. In any case when the U.S. Dollar Index trades higher the stock market will be under pressure. Will the U.S. Dollar Index hold it’s gains today or will if fade and sell off as it often does after the opening bell at the New York Stock Exchange? These questions remain to be seen.
