* Dow, S&P 500 eke out records again, but volume is light
* Revised ISM manufacturing data will come close to
* 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 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
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
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
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)