Dow, S&P 500 set record highs as manufacturing expands
NEW YORK — Stocks closed mostly higher on a quiet Monday as two reports showed the manufacturing industries of the world's two largest economies expanded in May.
Both the Dow Jones industrial average and the Standard & Poor's 500 index were able to set record highs for a second trading day in a row.
The Dow rose 26.46 points, or 0.2 percent, to 16,743.63. The S&P 500 rose 1.40 points, or 0.1 percent, to 1,924.97, and the Nasdaq composite fell 5.42 points, or 0.1 percent, to 4,237.20.
The Institute for Supply management said U.S. manufacturing grew at a brisk pace last month, correcting its earlier statement that growth had slowed.
The ISM said the correct number for its manufacturing index was 55.4 in May, in line with what economists were expecting. That's a better result than the 53.2 figure that ISM initially reported.
The ISM manufacturing report is one of two closely watched reports each month, second only to the government's monthly survey of the job market. To see major revisions to such a report on the day it's released was highly unusual, traders said, especially for a report that is so relied on each month.
“It's a debacle, as far as ISM is concerned,” said Tom di Galoma, head of fixed income rates at ED&F Man Capital. “It's hurt their credibility, and it's going to take awhile for that to recover.”
Investors got some positive manufacturing news out of Asia. A Chinese manufacturing index edged up to 50.8 in May from 50.4 in April.
Asian stocks rose on the report. Japan's Nikkei rose 2.1 percent on Monday.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Post-Gazette offers voluntary buyouts in bid to avoid layoffs
- Range Resources cuts workforce 11%
- United Airlines hack coincided with incursion into government employee data
- Gold continues to fall further out of favor with investors
- U.S. Steel CEO expects rebound
- Voice-assisted technology raises privacy concerns
- PPG puts brand 1st in strategy to reach commercial paint market
- EPA ordered to ease limits on cross-border air pollution that involves Pennsylvania
- Muni bond funds stressed
- Fed holds steady on rates
- Ambridge’s PittMoss takes off with help from TV show, Mt. Lebanon native Cuban