The Strong Dollar Is Driving Profits for U.S.-Focused Companies

A strong dollar is boosting the earnings of domestically focused companies in the S&P 500 Index more than those with foreign exposure, according to a study by Bank of America Merrill Lynch. The valuation gap between the U.S. and other global equity markets is at an all-time high, according to a report by the bank. The S&P 500’s forward price-to-earnings ratio rose in July and August and is now at its highest level since February, the report noted.