US STOCKS-Dow, S&P edge up; revised ISM reportedly more bullish

Mon Jun 2, 2014 1:03pm EDT

* Dow, S&P 500 eke out records again, but volume is light

* Revised ISM manufacturing data will come close to expectations

* Broadcom rallies, may sell cellular baseband business

* Dow up 0.1 pct; S&P 500 up 0.04 pct; Nasdaq down 0.2 pct (Updates to midday, adds paragraph 2 on expected official correction of ISM data)

By Ryan Vlastelica

NEW YORK, June 2 (Reuters) - U.S. stocks mostly held tiny gains on Monday, recovering from earlier losses as a closely watched read on manufacturing was reportedly corrected to show more strength than initially indicated.

The Institute for Supply Management's manufacturing index for May will be corrected to something closer to the Reuters analyst consensus reading of 55.5, not the 53.2 that was originally reported. CNBC, citing ISM sources, originally said it would be changed to 56, but ISM has not yet issued an official correction.

Wall Street fell after the first report, with all 10 S&P 500 sector indexes down for the day at one point, though stocks subsequently rebounded. Material shares turned higher, up 0.4 percent.

"People are still looking for signs that the economy is recovering, and the first ISM number had people questioning the strength of the economy," said John Carey, portfolio manager at Pioneer Investment Management in Boston. "This revision gives us more reason to be confident, and it isn't surprising to see stocks recover a bit."

Both the Dow Jones industrial average and the S&P 500 touched intraday records on Monday, though volume was still slight, suggesting a lack of conviction behind the advance.

The CBOE Volatility Index popped up 3.3 percent but still hovered around lows not seen since March 2013. That the VIX, the so-called "fear index," is so low has many, including officials at the Federal Reserve, concerned that the market is complacent.

Google Inc pressured tech shares, falling 1.8 percent to $561.24. A censorship watchdog said the company'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.

The Dow Jones industrial average rose 20.81 points or 0.12 percent, to 16,737.98. The S&P 500 gained 0.79 of a point or 0.04 percent, to 1,924.36. The Nasdaq Composite , however, dropped 9.80 points or 0.23 percent, to 4,232.82.

Broadcom Corp was the S&P 500's biggest percentage gainer and the Nasdaq's most active stock, jumping 9.5 percent to $34.89 after the chipmaker said it was looking to sell or wind down its cellular baseband business.

Ariad Pharmaceuticals Inc shares rose 7.7 percent to $6.95 in heavy volume a day after saying its drug ponatinib showed anti-tumor activity in patients with advanced gastrointestinal stromal tumors.

Protective Life Corp shares surged 11.7 percent to $58.44 following news that Japanese insurer Dai-ichi Life Co was in advanced talks to buy the company.

Apple Inc will be in focus going into the company's annual Worldwide Developers' Conference, though the tech titan is not expected to announce any new product categories. The stock slipped 0.3 percent to $630.84. (Editing by Bernadette Baum and Jan Paschal)