U.S. stocks wavered between small gains and losses in early Tuesday trade, with the S&P 500 index trading near all-time highs, after cheerful data on manufacturing and construction spending.
Factory activity expanded at the fastest pace in three years in August as new orders jumped the most in 10 years, indicating strong momentum for the economy heading into the third quarter. The Institute for Supply Management’s index (ISM) surprisingly climbed to 59, the highest level since March 2011, compared with 57.1 in July. Analysts had called for a reading of 57.1.
The jump in the head index was boosted by the new orders gauge which soared to 66.7, the highest since April 2004. Other data showed construction spending climbed at a faster than estimated rate in July.
-The Dow Jones Industrial Average fell 0.09% or 15.35 points to 17083.10
-The S&P 500 index gained 0.01% or 0.19 points to 2003.56
-The NASDAQ Composite Index gained 0.28% or 12.55 points to 4592.50 . As of 10:32 a.m. ET
The U.S. dollar climbed to the highest in more than a year against other major currencies on Tuesday. The 10-year Treasury yield jumped 6.8 basis points to 2.409%. Dollar-denominated gold and oil fell.
In individual corporate news, Dollar General increased its bid for Family Dollar Stores and said it might take the case directly to shareholders it’s the offer was rejected.
Conn’s shares slumped after the furniture retailer cut its full-year outlook.
Compuware agreed to a purchase offer by private-equity firm Thoma Bravo for $2.5 billion.