US stocks rebound despite downbeat data
Traders use their handheld devices as they work on the floor of the New York Stock Exchange in this Friday, May 31, 2013, photo. US stocks rebounded Monday from Friday’s steep losses despite weaker data on manufacturing and construction spending. AP/RICHARD DREW
NEW YORK—US stocks rebounded Monday from Friday’s steep losses despite weaker data on manufacturing and construction spending.
The Dow Jones Industrial Average jumped 138.46 points (0.92 percent) to finish the day at 15,254.03.
The broad-based S&P 500 gained 9.68 (0.59 percent) at 1,640.42, while the tech-rich Nasdaq Composite rose 9.45 (0.27 percent) to 3,465.37.
The Institute for Supply Management’s purchasing managers index (PMI) on US manufacturing unexpectedly slumped into contraction territory in May, for the first time since November, and the Commerce Department reported that construction spending in April rose 0.4 percent, less than half of the increase expected.
“The deteriorating economic data is mitigating some concerns surrounding the Federal Reserve possibly cutting its asset purchases in the near term,” Charles Schwab & Co. said.
Nevertheless, better-than-expected US auto sales in May pointed to the continued pick-up in the auto industry.
Ford shares rose 1.3 percent after reporting a 14 percent increase in May sales from a year ago. General Motors climbed 1.6 percent on a 3.1 percent year-on-year sales gain.
Apple edged up 0.2 percent as a New York trial opened pitching the iPhone and iPad maker against government accusations that it led a conspiracy to boost the price of ebooks.
Merck leaped 3.8 percent after announcing Sunday encouraging preliminary results in the trial of a cancer therapy targeting advanced melanoma.
Intel soared almost 4.0 percent. The embattled chip maker got a boost from FBR Capital Markets’s upgrade to “outperform,” said Jon Ogg at 24/7 Wall St.
“Pay attention closely because Intel has been so out of favor that the investment community has been negative to the point that many more upgrades could come down the pipe,” he added.
Zynga plunged 12.0 percent after announcing plans to cut 18 percent of its staff to refocus on games for mobile devices.
Bond prices advanced. The yield on the 10-year US Treasury slumped to 2.13 percent from 2.16 percent late Friday, while the 30-year yield fell to 3.28 percent from 3.31 percent. Bond prices move inversely to yields.
