US stocks dropped after the S&P’s 500 Index had its best performance from February while energy producers fell with prices of crude, to offset the data indicating manufacturing has expanded the fastest in the last three years.
Energy producers fell 1.3% cumulatively while Newfield Exploration Co. dropped 2%. Staples Inc. gained 7.2% after the raise on stock rating by Credit Suisse group AG. Dollar General Corp gained 0.7% after boosting the offer on family Dollar Stores. There was a 3.7% gain for Regeneron Pharmaceuticals after releasing the test results on a cholesterol drug.
At 12:14 pm New York time, the S&P 500 dropped 0.2% to 1,999.54, while the Dow Jones Industrial Average dropped 0.3% to 41.92 points to 17, 056.53.
“The 2,000 are is still in play, and we’ve yet to move past it convincingly as it remains a speed bump in the short term. The manufacturing index was better than expected, but after that strong rally we had through much of August, the market is taking a bit of a breather,” Bloomberg quotes Schaeffer’s Investment Research Inc senior equity analyst, Joe Bell as having said.
Construction spending came back strongly with an increase of 1.8% to the $981.31 billion annual rate, the highest from December 2008.
Reuters reported that Adam Parker, Morgan Stanley strategist, said that the US economy might be in the middle of a long expansion and the S&P might reach 3,000 within about five years of growth.
Compuware rose 12.2% to $10.49 after it agreed to be purchased by Thoma Bravo LLC, a private equity investment firm, in a $2.5 billion deal.
Conn’s Inc dropped to $31.06 by 30.7% after its second quarter results missed the expectations. Exelixis shares dropped 55.6% to around $1.88. On Monday, the company said it would cut approximately 70% of the workforce after cabozantinib, its experimental drug for prostate cancer failed.
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