Closing Update: Stocks Touch New Records Following Manufacturing Revisions

Stocks recovered early gains and touched record highs after the Institute for Supply Management corrected its monthly index to show a modest gain from April instead of a contraction in manufacturing. The group twice issued corrections Monday, first pointing to a software glitch and then detailing seasonal-adjustment issues. But after touching the new high, equities flat-lined into the close leaving the Dow Industrials and S&P 500 with very modest gains and Nasdaq Composite lower in back-to-back sessions.

Shares of Google ( GOOG ) and Apple ( AAPL ) both contributed to the lower close in the tech-heavy index as GOOG shares reacted negatively to China's increased censorship of the search engine leading into the anniversary of the Tiananmen Square protests, while Apple shares reflected investors' disappointment with the lack of innovative products introduced at the developer's conference.

But the big news today was the repeated revisions to the ISM manufacturing index for May that reverberated through Wall Street. The ISM initially reported a decline to 53.2, missing estimates of 55.5 and down from 54.9 in April. This was revised to 56.0, and then revised again to 55.4 as the index was recalculated to include seasonal adjustments.

The fluctuations in the ISM and its impact on equities overshadowed a greater-than-expected increase in the May Purchasing Managers Index to 56.4, and a 0.2% gain in April construction spending, missing estimates for +0.7%.

Here's where the markets stand at the close:


Dow Jones Industrial Index was up 26 points (+0.16%) at 16,743

S&P 500 was up 1.4 point (+0.07%) at 1,924

Nasdaq Composite Index was down 5 points (-0.13%) at 4,237


FTSE 100 was up 0.29%

Nikkei 225 was up 2.07%

Hang Seng Index was up 0.31%

Shanghai China Composite Index was up 0.07%


(+) EVRY (58.18%) Reached a forebearance agreement with lenders and amended its asset-backed loan agreement.

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(-) BEBE (-16.81%) CEO sold 141,000 shares

(-) ACAT (-8.79%) Downgraded at Baird to Neutral from Outperform, PT cut by $7

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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