Returning from the Labor Day public holiday US stocks closed stronger on Tuesday, the Nasdaq reaching its highest level in close to a year. A rally in commodity prices and an upgrade at General Electric helped to boost Wall St.
The Dow Jones industrial average rose 56 points to 9,497. The S&P500 Index up 9 points to 1,025 and the NASDAQ rose 19 points to 2,038.
In company news: Shares in packaged foods manufacturer Kraft Foods Inc (NYSE:KFT) fell 5.87 per cent to $26.45 and shares in confectionery company Cadbury plc (NYSE:CBY) soared 38.49 per cent to $51.88. Kraft shares took a tumble after Cadbury rejected the company’s $16.7 billion takeover offer. However according to CNN Money the company is determined to pursue the merger.
Shares in Energy Conversion Devices Inc (NASDAQ:ENER) added 24.98 per cent to $13.01. Speculation is mounting that the company could be the target of a takeover. The company said it would not comment on such speculation.
Shares in technology, media and financial services company General Electric Company (NYSE:GE) gained 4.54 per cent to $14.50. JPMorgan revised its rating on the stock to ‘overweight’ from ‘neutral’ and according to Reuters said that any news on company fundamentals could be magnified.
And shares in pork processor Smithfield Foods Inc (NYSE:SFD) lost 2.22 per cent to $12.75. The company posted a loss for the first quarter that was larger than expectations. Checking the NASDAQ Top 100: Making the most gains on Tuesday was First Solar, its shares added 10.65 per cent to $134.41. Seagate Technology and Foster Wheeler were the next best performers. The worst performer overnight was Genzyme, its shares fell 2.54 per cent to $55.74. Flextronics and Autodesk also followed in the red.
