U.S. stocks closed mixed overnight, a weaker than expected read on consumer sentiment and a better than expected housing report giving investors plenty to consider. Stocks recovered however from earlier lows, supported by gains in healthcare stocks after Amgen’s strong earnings report the day before.
The Dow Jones industrial average dropped 12 points to 9,097. The S&P500 Index lost 3 to 980 and the NASDAQ gained 8 points to 1,976.
In economic news: The Conference Board reports that its index of consumer confidence fell to a read of 46.6 in July from 49.3 in June. Economists expected a drop to 49.
And the S&P/Case-Shiller 20-city home price index increased 0.5 per cent in May. The index fell 17.1 per cent from a year ago. Forecasts were for a drop of 17.9 per cent.
In company news: Shares in Bank of America Corporation (NYSE:BAC) rose 1.91 per cent to $13.34. According to a report in the Wall St Journal, the bank is planning to cut around 10 per cent of its branch network.
Shares in information technology company International Business Machines Corporation, IBM (NYSE:IBM) fell 0.3 per cent to $117.28. The company says it plans to acquire software maker SPSS, based in Chicago, in a deal worth $1.2 billion.
In more deal news, communications company Sprint Nextel Corporation (NYSE:S) shares gained 0.88 per cent to $4.59. The company is to buy Virgin Mobil in a deal worth $438 million. Sprint Nextel says it is set to acquire the remaining 87 per cent of Virgin that it does not already own.
And shares in managed health care company Coventry Health Care Inc (ASX:CVH) advanced 12.67 per cent to $22.59. The company upgraded its earnings outlook for the year, despite second quarter profit plunging 78 per cent to $18.4 million.
Checking the NASDAQ Top 100: The best performer was Check Point Software which added 5.03 per cent to $26.09. While Teva Pharmaceuticals and Celgene also climbed higher. The worst performing stock was Paccar down 7.31 per cent to $32.71, with Joy Global and Foster Wheeler also closing lower.
