Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Overnight Markets: US stocks gain after ISM revises factory data

Overnight Markets: US stocks gain after ISM revises factory data

The Dow Jones and the Standard & Poor’s 500 Index finished at record highs again on Monday after the Institute for Supply Management data on US manufacturing was revised to show more strength than initially indicated.

The Dow Jones industrial average gained 26 points or 0.16%, to 16,744. The S&P 500 rose one point to 1,925. But the Nasdaq Composite fell five points or 0.13%, to 4,237.

After hours of confusion, the ISM officially corrected its earlier report to show that the pace of growth in the US manufacturing sector accelerated in May. Its index of national factory activity rose to 55.4 last month from 54.9 in April, with the May figure just shy of the 55.5 expected by a Reuters poll of economists.

Other factory reports from around the world were mixed. Manufacturing in the euro area grew at a slower pace amid weakness in France. Manufacturing in China expanded in May at the fastest pace in five months.

Industrials and material stocks were among the day's biggest gainers, while the technology sector ended lower, weighed down by big names like Apple and Google.

Apple (AAPL.O) shares fell 0.7% after the tech giant introduced new operating systems for its Mac computers and mobile devices at its annual Worldwide Developers’ Conference.

Google Inc (GOOGL.O) also pressured tech shares, falling 1.3%. A censorship watchdog said Google's services were being disrupted in China ahead of this week's 25th anniversary of the 1989 crackdown on pro-democracy demonstrators around Beijing's Tiananmen Square.

Broadcom Corp (BRCM.O) was the S&P 500's biggest percentage gainer, jumping 9.3% after the chipmaker said it was looking to sell or wind down its cellular baseband business.

In another deal news, American Realty Capital Healthcare Trust Inc. jumped 9.7% after Ventas Inc. agreed to buy it.

Ariad Pharmaceuticals Inc (ARIA.O) shares shot up 4% in heavy volume a day after the company said its drug ponatinib showed anti-tumour activity in patients with advanced gastrointestinal stromal tumours.

In Asia, shares gained on Tuesday in early morning trade after a gauge for China’s services industry increased.

The MSCI Asia Pacific Index gained 0.3% to 143 as of 10:46 a.m. in Tokyo. Japan’s Nikkei Stock Average 225 was up 1.0%, while Hong Kong’s Hang Seng Index increased 1.07%. Korea’s Kospi Index fell 0.03%. Singapore’s Straits Times Index was trading 0.07% lower in early morning trade. In China, Shanghai Composite Index fell 0.09%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Play Henderson's Lofthouse on merger boost and political risk

Henderson's Lofthouse on merger boost and political risk

Ben Lofthouse talks through where he is finding income and what surprises await the global economy in the new year.

Read More
Your Business: Cover Star Club

Profile: why Patronus Partners' founder left the only job he ever knew

Profile: why Patronus Partners' founder left the only job he ever knew

'There was a definite idea of how things would work out over 12 months. When we look back, that was inaccurate'

Wealth Manager on Twitter