US stocks closed mixed overnight, the Dow Jones rose and the S&P 500 bounced back late in the session, a rally in select blue chip stocks countered lower oil prices and concerns for an economic recovery. However the tech heavy Nasdaq fell as investors moved out of the tech sector.
The Dow Jones industrial average rose 44 points to 8,325. The S&P500 Index gained 2 points to 899 and the NASDAQ closed 9 points weaker at 1,787. In economic news, The Institute for Supply Management’s services index rose to a read of 47 in June from 44 in May. Economists had expected a rise to 46. The result still remains below the 50 mark separating expansion from contraction.
In company news: Shares in soft drink maker Pepsi (NYSE:PEP) rose 1.38 per cent to $57.13. In an effort to boost sales in emerging markets after continued weakness in domestic sales Pepsi and Pepsi Bottling Group are reportedly looking to spend a further $1 billion in Russia over the next three years. Added to previous investments, together the two have invested $4 billion in Russia.
Waste and energy services company Covanta Holding Corporation (NYSE:CVA) gained 0.06 per cent to $16.68. Covanta is reportedly to acquire majority of the North American energy-from-waste facilities of Veolia Environment Services North America Corp. Reuters reports that the deal is worth close to $450 million.
Shares in petroleum refiner and chemicals manufacturer Sunoco Inc (NYSE:SUN) dropped 4.14 per cent to $22.24. The company says it will shut the ethylene complex at its Marcus Hook refinery in Pennsylvania for good. Sunoco says its decision was due to a lack of demand.
And shares in pork processor and hog producer Smithfield Foods Inc (NYSE:SFD) fell 2.92 per cent to $13.30. A fire has caused significant damaged to the company’s meat packing plant in Wisconsin. The fire was brought under control, but the extent of the damage and impact on the company’s business is not yet known. Checking the NASDAQ Top 100: The best performer was Dell rising 3.47 per cent to $13.42. Ryanair Holdings and Verisign also closed higher.
On the downside, Steel Dynamics was the worst performer falling by 7.46 per cent to $13.27. Foster Wheeler and Akamai Technologies also closed weaker.
