News Column

Major Averages Close Nearly Flat Following Choppy Trading Day

June 2, 2014



WASHINGTON (Alliance News) - After recovering from an early move to the downside, stocks showed a lack of direction throughout the remainder of the trading day on Monday. The choppy trading came as traders digested corrections to a key reading on US manufacturing activity.

The early weakness on Wall Street was partly due to the release of a report from the Institute for Supply Management showing an unexpected slowdown in the pace of growth in the manufacturing sector in the month of May.

The report generated some uncertainty about the strength of the economic recovery from the weather-induced weakness seen earlier in the year.

However, stocks climbed well off their lows after ISM revealed that the data was incorrect due to a series of technical glitches.

Corrected data from the ISM showed that the purchasing managers index inched up to 55.4 in May from 54.9 in April, with a reading above 50 indicating growth in the manufacturing sector. The latest reading was nearly in line with economist estimates of 55.5.

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

The major averages eventually ended the day on opposite sides of the unchanged line. While the Nasdaq edged down 5.42 points or 0.1% to 4,237.20, the Dow rose 26.46 points or 0.2% to 16,743.63 and the S&P 500 inched up 1.40 points or 0.1% to 1,924.97.



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Source: Alliance News


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