Thursday, September 2, 2010

BHP (NYSE:BHP), Freeport (NYSE:FCX) and Alcoa (NYSE:AA) Advance on Weakening Dollar

While the U.S. manufacturing report posted better numbers than believed, the drop in the value of the U.S. dollar was the impetus behind mining companies surging Wednesday.

Oddly, the cut in jobs in the private sector for August was largely shrugged off by those desperate to grasp onto any positive economic news, which has been very little lately.

For BHP Billiton (NYSE:BHP), Freeport McMoRan (NYSE:FCX) and Alcoa (NYSE:AA), they enjoyed the weakening of the dollar which is always a boost to commodity prices.

The index from the Institute for Supply Management showed a reading of 56.3 in August, whereas analysts had been looking for it to drop to 52.9.

While the mining sector performed the best, manufacturers like Deere (NYSE:DE), General Electric (NYSE:GE) and Caterpillar (NYSE:CAT) were beneficiaries of the index number increase as well.

The Dow rose by over 250 point Wednesday in response to the news.

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