International Revenues Playing a Role in the Rally

With the Dollar up sharply since the S&P 500 made its recent low on July 15th, we wanted to see how much the move might be impacting equities.  As the Dollar has declined over the last few years, US exports have risen sharply, and US companies with large international revenue exposure have benefited.  But as the Dollar has bounced off its lows recently, the international revenues play has reversed.  Below we highlight the average performance since July 15th of stocks with no international revenues and stocks with more than 50% international revenues.  As shown, S&P 500 stocks with no overseas exposure (148 stocks) are up an average of 20%, while those with more than 50% (106 stocks) are up 2.84%.  The S&P 500 as a whole is up 4.94%.  If the Dollar continues to rally, this trend should stay in place.   

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