Stocks recover after manufacturing report revised
Source: AP-EXCITE
By KEN SWEET
NEW YORK (AP) Stocks erased an early loss Monday 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 the report are very unusual.
KEEPING SCORE: The Dow Jones industrial average rose 16 points, or 0.1 percent, to 16,734 as of 12:55 p.m. Eastern. The Standard & Poor's 500 index was up a point to 1,924 and the Nasdaq composite lost six points, or 0.2 percent, to 4,236. 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.
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.
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Specialist Jason Hardzewicz, left, and trader Vincent Quinones work on the floor of the New York Stock Exchange Monday, June 2, 2014. Stocks were moving slightly lower in early trading Monday following the release of a closely watched report that showed an unexpected slowdown in U.S. manufacturing last month. The market is coming off record highs last week. (AP Photo/Richard Drew)