NEW YORK (AP) - Stocks were mixed Monday afternoon after a trade group said U.S. manufacturing grew at a brisk pace last month, correcting its earlier statement that growth had slowed. Investors were caught off guard since changes to such reports are very unusual.
NEW YORK (AP) — Stocks were mixed Monday afternoon after a trade group said U.S. manufacturing grew at a brisk pace last month, correcting its earlier statement that growth had slowed. Investors were caught off guard since changes to such reports are very unusual.
KEEPING SCORE: The Dow Jones industrial average rose 25 points, or 0.2 percent, to 16,742 as of 2:37 p.m. Eastern. The Standard & Poor's 500 index was up a point to 1,925 and the Nasdaq composite lost 11 points, or 0.3 percent, to 4,231. The Dow and S&P 500 both closed at record highs on Friday.
ISM REVISIONS: The Institute for Supply management had to issue two corrections to its monthly manufacturing report, which investors keep a close eye on as an indicator of where the U.S. economy is heading. 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 reported initially.
'DEBACLE': 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 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 creditability and it's going to take a while for that to recover."
MADE IN CHINA: There was also encouraging economic 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 increased 2.1 percent.
ANOTHER HEALTHCARE DEAL: The real-estate investment trust Ventas said it has reached a deal to buy American Realty Capital Healthcare Trust Inc. in a $2.6 billion cash-and-stock deal. The companies each own medical care offices along with other properties. A.R.C.'s stock rose 97 cents, or 10 percent, to $10.92 while Ventas fell $1.72, or 2.6 percent, to $65.08.
BROADCOM: Semiconductor maker Broadcom rose $3.26, or 10 percent, to $35.13. The company said it is exploring options for its cellular chip business, which could include selling the division or shutting it down.
BONDS PULL BACK: The yield on the 10-year Treasury note rose to 2.54 percent from 2.48 percent on Friday. Even with the modest increase, bond yields are still trading near their lows for the year. Bond investors expect yields to remain at these levels for the foreseeable future.
"You're still looking at a global economic picture that needs a lot more growth," said Robert Tipp, chief investment strategist for Prudential Fixed Income.