US midday: Stocks mixed despite positive ISM numbers

US stocks were trading in a mixed fashion late on Wednesday evening, with the S&P 500 pausing at an all-time high, ironically as investors digested upbeat news about the American economy.

US stocks were trading in a mixed fashion late on Wednesday evening, with the S&P 500 pausing at an all-time high, ironically as investors digested upbeat news about the American economy.

Manufacturing growth in the States picked up pace in August to its fastest rate in three years, while construction spending rebounded in July.

Traders were returning to their desks in a cautious mood after the three-day Labor Day weekend. The S&P 500 settled at 2,003 on Friday 29 August, its 32nd record close of 2014, ending August 3.8% higher.

The Dow Jones Industrial Average was down 0.26% while the Nasdaq Composite gained 0.23%.

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

Dollar General has lifted its offer for Family Dollar 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 was trading higher ahead of the opening bell.

Biotech group Exelixis saw its shares plummet as it announced that it would cut 70% of its workforce after a failed drug trial for prostate cancer.

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.

From a sector standpoint the best performance was to be seen in the following industrial groups: Airlines (3%), Electronic office equipment (1.52%) and transportation services (1.45%).

Oil futures fall sharply

Front month West Texas crude futures are slipping by 3.14% to $92.96 per barrel.

US 10-year Treasuries were bouncing back higher by seven basis points to 2.41%.

S&P 500 - Risers
Staples Inc. (SPLS) $12.73 +9.03%
GameStop Corp. (GME) $43.92 +4.09%
Regeneron Pharmaceuticals Inc. (REGN) $363.68 +3.77%
Under Armour Inc. Class A (UA) $70.78 +3.54%
Facebook Inc. (FB) $76.00 +2.91%
Delta Airlines Inc. (DAL) $40.73 +2.91%
Avago Technologies Ltd. (AVGO) $84.14 +2.50%
Ryder System Inc. (R) $92.44 +2.32%
Southwest Airlines Co. (LUV) $32.69 +2.12%
Expedia Inc. (EXPE) $88.22 +2.11%

S&P 500 - Fallers
Wynn Resorts Ltd. (WYNN) $183.88 -4.67%
Peabody Energy Corp. (BTU) $15.32 -3.53%
Noble Corporation plc (NE) $27.48 -3.46%
Micron Technology Inc. (MU) $31.53 -3.28%
Denbury Resources Inc. (DNR) $16.67 -3.22%
Range Resources Corp. (RRC) $76.20 -3.04%
Ensco Plc. (ESV) $48.95 -3.03%
Home Depot Inc. (HD) $90.70 -2.99%
Newfield Exploration Co (NFX) $43.52 -2.90%
Sandisk Corp. (SNDK) $95.19 -2.83%

Dow Jones I.A - Risers
Nike Inc. (NKE) $79.29 +0.94%
Visa Inc. (V) $214.41 +0.89%
Walt Disney Co. (DIS) $90.64 +0.85%
United Technologies Corp. (UTX) $108.89 +0.84%
Goldman Sachs Group Inc. (GS) $179.68 +0.32%
Wal-Mart Stores Inc. (WMT) $75.64 +0.18%
3M Co. (MMM) $144.15 +0.10%
American Express Co. (AXP) $89.64 +0.10%
JP Morgan Chase & Co. (JPM) $59.50 +0.08%

Dow Jones I.A - Fallers
Home Depot Inc. (HD) $90.70 -2.99%
Chevron Corp. (CVX) $127.19 -1.74%
Exxon Mobil Corp. (XOM) $98.00 -1.47%
Boeing Co. (BA) $124.95 -1.46%
Microsoft Corp. (MSFT) $44.97 -1.02%
McDonald's Corp. (MCD) $92.76 -1.02%
Cisco Systems Inc. (CSCO) $24.83 -0.66%
General Electric Co. (GE) $25.82 -0.61%
Merck & Co. Inc. (MRK) $59.77 -0.57%
AT&T Inc. (T) $34.81 -0.44%