US stocks close mixed

NEW YORK: US stocks closed mixed Tuesday after a key report showed the
third straight monthly contraction in the manufacturing sector, a key
engine behind the economy's still-sluggish recovery.

The Dow Jones Industrial Average was down 54.90 points (0.42 percent), finishing at 13,035.94.

The
broad-based SandP 500 slipped 1.64 (0.12 percent) to 1,404.94, while
the tech-rich Nasdaq gained 8.10 (0.26 percent) at 3,075.06.

"The
weakness in stocks comes as disappointing domestic manufacturing and
construction spending reports added to yesterday's plethora of
lackluster global reports out of the sector to foster global growth
concerns," Charles Schwab and Co. analysts said.

Medicis
Pharmaceutical Corporation soared 38.3 percent after agreeing to be
acquired by Canadian firm Valeant Pharmaceuticals International in a
US$2.6 billion cash deal. Valeant scored a 14.7 percent gain.

Major
automakers reported strong August US sales numbers. General Motors
slipped 0.2 percent after beating estimates with a 10 percent gain in
sales over a year earlier, while Ford Motor Co. was up 0.8 percent on a
13 percent rise and plans to boost production.

Campbell Soup was down 0.1 percent, off earlier gains, after reporting quarterly profit above estimates.

Caterpillar led losers on the Dow, falling 3.1 percent.

Heavyweight
Apple supported the Nasdaq, bouncing 1.4 percent higher. The California
gadget maker on Tuesday invited members of the media to a September 12
event in San Francisco for what is expected to be the debut of a
new-generation iPhone.

Marking the first trading day of the
month, Fred Dickson at DA Davidson and Co. warned that over the last 40
years, September has been the most difficult month of the year for
investors.

"This September appears to be fully loaded with
potential market-moving events beyond the normal beginning of the month
economic data including an updated monthly employment report this
Friday," he said. -- AFP