US open: Stocks mixed as investors digest upbeat data
- US manufacturing growth at three-year high, ISM survey shows
- Dollar General ups Family Dollar offer
- S&P 500 pauses at record high
Dow Jones: -0.1%
Nasdaq: +0.3%
S&P 500: 0.0%
US stock fluctuated in early deals on Tuesday with the S&P 500 pausing at an-time high 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 weekend, with the S&P 500 more or less flat early on. The S&P 500 settled at 2,003 on Friday, its 32nd record close of 2014, ending August 3.8% higher.
The Dow Jones Industrial Average was down 0.1% while the Nasdaq gained 0.3% shortly after the opening bell.
Wall Street closed for the Labor Day holiday on Monday.
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 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.
BC