Dollar Rise Squeezes ETFs and Indexes

Stocks started strong, then took a dive on Monday as investors got jittery over the dollar and oil prices, sending commodity-based exchange-traded funds on a slide. The euro hit a session low of $1.485 against the dollar as commodity prices reversed in midsession.

The Dow Jones Industrial Average closed down 105 points at 9867. The Nasdaq ended 13 lower at 2142 and the S&P 500 dropped 13 to 1067.

According to Thomson Reuters, 81% of the 199 S&P 500 companies that have reported results have beaten estimates. The tech sector had a bright spot today in Marvell Technology Group (MRVL), which jumped after the company lifted its earnings outlook, citing better-than-forecast revenue and a tax benefit. Meanwhile, billionaire Nelson Peltz took a 4.3% stake in asset manager Legg Mason (LM) and will take a board seat in exchange for acquiring no more than 9.9% of the company.

Monday's economic calendar was light, with the Treasury selling $7 billion of five-year inflation-protected notes to kick off a busy week of debt sales.

Overseas, Asian markets ended mostly higher. South Korean shares advanced on upbeat economic data, while expectations of strong corporate earnings lifted exporters in Japan. Japan's Nikkei 225 Average climbed 0.8% to 10362.62, South Korea's Kospi rose 1% and the Shanghai Composite Index inched up 0.1%. European shares rose, with autos and chemical firms leading a broad-based advance, although ING (ING) shares declined after the firm announced a restructuring.

Oil futures dropped on the Nymex after an early rise. As of 4:02 p.m., front-month crude futures were down 3 cents from the regular session close at $78.65 a barrel.

For a detailed rundown on Monday’s trading session see our market story. 

Monday's abrupt market reversal juiced shares of the iPath Exchange Traded Notes S&P 500 VIX Short-Term Futures Index fund (VXX) which rose 3.3%. The Semiconductor HOLDRS fund (SMH) held up against the market slide, gaining 0.5% as Marvell's results helped sustain the sector.

A slide in natural gas prices pushed down shares of the United States Natural Gas fund (UNG) 4.8%. The rising dollar squeezed gold prices, knocking 4.3% off the Market Vectors Gold Miners fund (GDX).