The S&P 500 and the Nasdaq rose on Wednesday as economic data reassured some investors and offset a batch of disappointing corporate earnings and outlooks. Data from the Institute for Supply Management showed the vast service sector shrank again in January but by less than expected, welcome news for investors confronted by a relentless flow of bad economic news.
The Dow fell, however, dragged down by Kraft Foods Inc after it reported lower profits and cut its 2009 earnings forecast. Shares of Kraft, maker of Oreo cookies and Maxwell House coffee, shed more than 8 percent to $26.32. Caterpillar, a maker of mining equipment, led the Dow gainers with a 4 percent rise.
The Dow Jones industrial average fell 28.20 points, or 0.35 percent, to 8,050.16. The Standard & Poor's 500 Index gained 3.41 points, or 0.41 percent, to 841.92. The Nasdaq Composite Index added 16.91 points, or 1.12 percent, to 1,533.21.