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US stocks bounced; Dow at record close and USD/RUB rallied 5.58%

FXStreet (San Francisco) - Wall Street made a turnaround from Monday's losses and closed with gains on Tuesday as investors digested speculations of more stimulus from PBoC and better than expected car sales from automakers like Ford $F, General Motors $GM and Fiat Chrysler $FCAU.

Russia cut its 2015 GDP forecast to a decline of 0.8% from the previous estimate of +1.2%. As a reaction, the USD/RUB soared 5.58% on the day and extended its rally to 63.52% YTD gains. China announced that the government will pay attention to where companies declare taxes and if they are changing their registered office to pay cheaper taxes. $MSFT required to pay $140M in back taxes.

The Dow performed its best day since November 5 and finished at record close at 17,879.55 after climbing 102.75 pts or 0.58% on the day. Small caps advanced in firm tone as Russell 2000 climbed 1.08% to 1,166.46. The S&P 500 added 13.11 pts or 0.64% to close at 2,066.55; while the Nasdaq jumped 28.46 pts or 0.60% to 4,755.81.

Energy sector led the market with a 1.02% advance, followed by Health Care (+0.72%) and Industrials (+0.61%). To the downside, Telecommunications declined 0.70% on the day with all of its underlying industries down. The sector is adding losses to its 4.45% decline in the last 3 months and 1.67% drop in 1-year basis.

Among others, bigger winner were $LFC (+6.55%), $BABA (+3.68%), $RDS.A (+2.76%) and $XOM (+1.99%). Lagards were $T (-2.20%), $RY (-2.20%) and $VZ (-1.84%). 52-week highs: $CSCO, $ABT, $PG, $BRK.B, $PCG among others. 52-week lows: $AVAL, $AVH and $FCX.

On commodities, the crude oil declined to 67.25, sending up the USD/CAD to 1.1420; while the gold returned below the 1,200 area.

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