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Overnight Markets: US stocks gain on upbeat ISM data
by Himanshu Singh on May 06, 2014 at 04:35
Wall Street ended slightly higher on Monday as an expansion in American service industries offset concern over growth in China and political tensions in Ukraine.
The Dow Jones industrial average rose 18 points or 0.11%, to 16,531, the S&P 500 gained four points or 0.19%, to 1,885 and the Nasdaq Composite added 14 points or 0.34%, to 4,138.
Shares rose after the Institute for Supply Management's services sector index hit the fastest pace in eight months in April, topping expectations.
Limiting the day's gains, however, were concerns over an escalation of tensions between Ukraine and pro-Russia separatists. Ukrainian forces were ambushed by separatists, triggering heavy fighting on the outskirts of the rebel stronghold of Slaviansk.
In company news, Apple (AAPL.O) shares, up 1.4%, led both the S&P 500 and Nasdaq higher.
Shares of Fannie Mae and Freddie Mac gained after activist investor William Ackman recommended the shares of mortgage finance giants during the Sohn Investment Conference in New York. Fannie (FNMA.OB) was up 3%, while Freddie (FMCC.OB) was up 6.3%.
On the downside, shares of JP Morgan Chase (JPM.N) fell 2.4% after the bank said late Friday it expects second-quarter revenue from bond and equity trading to decline about 20% from a year ago.
Pfizer Inc (PFE.N) shares fell 2.6% after the biggest US drugmaker reported revenues well below analysts' expectations.
After the bell, shares of American International Group Inc (AIG.N) declined 1.9% after it posted a 27% fall in quarterly income.
During the regular session, Target Corp (TGT.N) shares declined 3.5% after news that chief executive and chairman Gregg Steinhafel will leave the No. 3 US retailer in the wake of a data breach last year.
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