U.S. stocks ended a choppy session higher overnight, the Dow Jones and S&P500 reaching nine month highs following a stronger than expected housing report that suggested that the economy is slowing starting to recover from the recession.
On Tuesday, the Dow Jones industrial average rose 34 points to 9,320. The S&P500 Index gained 3 to 1006 and the NASDAQ also added 3 points to 2,011.
In economic news: The National Association of Realtors pending homes sales index rose 3.6 per cent in June after rising 0.8 per cent in May. Forecasts were for a rise of 0.7 per cent.
The Commerce Department reports that personal income fell 1.3 per cent in June, worse than the 1 per cent decline economists had expected. Personal spending rose 0.4 per cent, economists expected a 0.3 per cent rise.
And a report released by the American Bankruptcy Institute showed that consumer bankruptcies skyrocketed 34 per cent in July compared to the same time a year ago.
In company news: Shares in global beverage, snack and food company PepsiCo Inc (NYSE:PEP) rose 5.09 per cent to $59.06. The company is reportedly in talks to buy Pepsi Bottling and PepsiAmericas in a cash and stock deal worth $7.8 billion.
Diversified technology, media and financial services company General Electric Company (NYSE:GE) gained 0.73 per cent to $13.82. Reuters reports that General Electric is to pay a $50 million civil penalty to settle charges brought against the company that it mislead investors with some fraudulent accounting in 2002 and 2003.
Machinery, engines and financial products company Caterpillar Inc (NYSE:CAT) added 6.14 per cent to $47.89. Caterpillar’s CEO reaffirmed the company’s 2009 earnings guidance. The company says it is targeting earnings of $8 to $10 a share in 2010 on sales of $60 billion, depending on how the economy recovers from the recession.
And shares in human resources company Hewitt Associates Inc (NYSE:HEW) advanced 4.03 per cent to $31.46. The company posted earnings I the third quarter that topped estimates and upgraded its full year outlook.
Checking the NASDAQ Top 100: the best performer was Cognizant Technology Solutions, shares adding 10.31 per cent to $33.60. While Wynn Resorts and Dish Network also climbed higher. The worst performing stock was Expeditors shares falling 4.91 per cent to $33.11, followed by First Solar and Ross Stores.
