US close: S&P 500 retreats from record despite strong ISM data
- S&P 500 slips from record high, Dow falls
- Nasdaq rises as Apple gains
- ISM manufacturing index, construction spending beat forecasts
- Dollar General lifts Family Dollar offer
Dow Jones: -0.18%
Nasdaq: +0.39%
S&P 500: -0.07%
US stocks were rangebound on Tuesday as investors gave a mixed reaction to upbeat economic data, with the S&P 500 retreating slightly from another all-time high.
Manufacturing growth in the States picked up pace in August to its fastest rate in three years, while spending on construction rebounded in July.
However, traders were returning to their desks in a cautious mood after the three-day Labor Day weekend, with the benchmark S&P 500 falling 0.1% by the close to 2,002.
The S&P 500 had settled at 2,003 on Friday 29 August, its 32nd record close of 2014, ending the month of August 3.8% higher.
The Dow Jones Industrial Average also finished lower on Tuesday, falling 0.2%, but the tech-heavy Nasdaq was driven 0.4% higher by gains from Apple.
"It has been a mixed bag today with equity markets struggling to find any real direction," said Lewis Sturdy, a dealer at Capital Spreads.
ISM manufacturing, construction spending beat forecasts
The Institute for Supply Management's US manufacturing index increased to 59.0 last month, up from 51.7 in July. This was the highest reading since March 2011 and ahead of the consensus forecast of 57.0.
Analysts at Barclays Research said that the report suggests that growth in the manufacturing sector is picking up notably in the third quarter. They said this "perhaps reflect[s] a lagged response to the pick-up in final sales in the second quarter as well as solid growth in capital spending in the third quarter".
Other economic data released on Tuesday showed that US construction spending jumped 1.8% in July, reversing a 1.8% decline the month before. The estimate was for 1.0% growth over the month.
Dollar General ups Family Dollar offer, Apple gains
Dollar General has lifted its offer for Family Dollar Stores to $80 a share. The new bid, up from the $78.50-a-share offer rejected last month, values the company at $9.1bn.
After the previous rejection, Family Dollar's board had recommended a cash/stock proposal by Dollar Tree which valued it at $8.5bn. Family Dollar ended the session 0.5% higher.
Tech giant Apple was driving gains on the Nasdaq as speculation builds about an event on 9 September, at which the iPhone 6 and possibly iWatch will be launched. Meanwhile, the company denied a rumoured breach of its iCloud system amid an investigation into the hacking of celebrity photo accounts.
Biotech group Exelixis saw its shares plummet 55% as it announced that it would cut 70% of its workforce after a failed drug trial for prostate cancer.
Office supplier retailer Staples rose strongly after Credit Suisse upgraded the stock to 'outperform', while Tesla Motors jumped after Stifel Nicolaus lifted the shares to 'buy'.
S&P 500 - Risers
Staples Inc. (SPLS) $12.80 +9.59%
Under Armour Inc. Class A (UA) $70.81 +3.58%
Avago Technologies Ltd. (AVGO) $84.96 +3.50%
Facebook Inc. (FB) $76.39 +3.43%
Regeneron Pharmaceuticals Inc. (REGN) $361.98 +3.29%
GameStop Corp. (GME) $43.51 +3.12%
Delta Airlines Inc. (DAL) $40.75 +2.95%
Southwest Airlines Co. (LUV) $32.86 +2.65%
Ryder System Inc. (R) $92.50 +2.39%
Graham Holdings Co. (GHC) $734.11 +2.13%
S&P 500 - Fallers
Wynn Resorts Ltd. (WYNN) $184.94 -4.12%
Peabody Energy Corp. (BTU) $15.30 -3.68%
Micron Technology Inc. (MU) $31.49 -3.40%
Noble Corporation plc (NE) $27.52 -3.30%
Range Resources Corp. (RRC) $76.08 -3.19%
Ensco Plc. (ESV) $48.88 -3.17%
Denbury Resources Inc. (DNR) $16.73 -2.85%
Windstream Holdings Inc (WIN) $11.02 -2.61%
Sandisk Corp. (SNDK) $95.47 -2.54%
Murphy Oil Corp. (MUR) $60.90 -2.52%
Dow Jones I.A - Risers
Visa Inc. (V) $214.57 +0.96%
Walt Disney Co. (DIS) $90.70 +0.91%
United Technologies Corp. (UTX) $108.95 +0.90%
Nike Inc. (NKE) $79.21 +0.84%
Goldman Sachs Group Inc. (GS) $179.79 +0.38%
JP Morgan Chase & Co. (JPM) $59.65 +0.34%
Wal-Mart Stores Inc. (WMT) $75.72 +0.29%
3M Co. (MMM) $144.11 +0.08%
American Express Co. (AXP) $89.58 +0.04%
Dow Jones I.A - Fallers
Home Depot Inc. (HD) $91.24 -2.42%
Chevron Corp. (CVX) $127.51 -1.50%
Boeing Co. (BA) $125.14 -1.31%
Exxon Mobil Corp. (XOM) $98.39 -1.08%
McDonald's Corp. (MCD) $92.75 -1.04%
Microsoft Corp. (MSFT) $44.96 -1.03%
Cisco Systems Inc. (CSCO) $24.83 -0.62%
Merck & Co. Inc. (MRK) $59.74 -0.61%
General Electric Co. (GE) $25.85 -0.50%
International Business Machines Corp. (IBM) $191.47 -0.43%
Nasdaq 100 - Risers
Staples Inc. (SPLS) $12.80 +9.59%
Tesla Motors Inc (TSLA) $283.66 +5.18%
Baidu Inc. (BIDU) $224.66 +4.73%
Avago Technologies Ltd. (AVGO) $84.96 +3.50%
Facebook Inc. (FB) $76.39 +3.43%
Regeneron Pharmaceuticals Inc. (REGN) $361.98 +3.29%
Expedia Inc. (EXPE) $88.14 +2.01%
Dish Network Corp. (DISH) $66.01 +1.98%
Intuitive Surgical Inc. (ISRG) $473.61 +1.73%
Yahoo! Inc. (YHOO) $39.17 +1.71%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $184.94 -4.12%
Micron Technology Inc. (MU) $31.49 -3.40%
Sandisk Corp. (SNDK) $95.47 -2.54%
Liberty Global plc Series A (LBTYA) $43.06 -2.36%
Seagate Technology Plc (STX) $61.62 -1.53%
Amgen Inc. (AMGN) $137.30 -1.49%
QUALCOMM Inc. (QCOM) $74.99 -1.46%
Mondelez International Inc. (MDLZ) $35.70 -1.35%
eBay Inc. (EBAY) $54.76 -1.21%
Vertex Pharmaceuticals Inc. (VRTX) $92.52 -1.12%
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