* Dow, S&P 500 eke out records again, but volume is light
* ISM corrects May factory data after hours of confusion
* Apple, Google shares weigh on Nasdaq
* Dow up 0.1 pct; S&P 500 up 0.02 pct; Nasdaq off 0.2 pct
(Updates to late afternoon)
By Angela Moon
NEW YORK, June 2 The Dow and the S&P 500 inched
higher late Monday afternoon, recovering from earlier losses
after a closely watched read on U.S. manufacturing was revised
to show more strength than initially indicated.
After hours of confusion, the Institute for Supply
Management officially corrected its earlier report to show that
the pace of growth in the U.S. manufacturing sector accelerated
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."
The ISM said its index of national factory activity rose to
55.4 last month from 54.9 in April, with the May figure just shy
of the 55.5 expected by a Reuters poll of economists. The ISM
had initially said the reading came in at 53.2, but it was
corrected due to an error in applying the seasonal adjustments.
The Dow Jones industrial average rose 18.40 points or
0.11 percent, to 16,735.57. The S&P 500 gained 0.36 of a
point or 0.02 percent, to 1,923.93. But the Nasdaq Composite
dropped 9.78 points or 0.23 percent, to 4,232.84.
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 2.7 percent but
still hovered around lows not seen since March 2013. The drop in
the VIX, the so-called "fear index," to such a low level has
many, including officials at the Federal Reserve, concerned that
the market is complacent.
Apple shares slid 1.2 percent to $625.02 on Monday
after the tech giant introduced new operating systems for its
Mac computers and mobile devices at the company's annual
Worldwide Developers' Conference.
Google Inc also pressured tech shares, falling 1.3
percent to $564.38. 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.
Broadcom Corp was the S&P 500's biggest percentage
gainer and the Nasdaq's second-most active stock, jumping 9.2
percent to $34.80 after the chipmaker said it was looking to
sell or wind down its cellular baseband business.
Ariad Pharmaceuticals Inc shares rose 7.3 percent
to $6.93 in heavy volume a day after saying its drug ponatinib
showed anti-tumor activity in patients with advanced
gastrointestinal stromal tumors.
Trading volume was at 3.6 billion shares on U.S. exchanges
with less than 30 minutes left in the regular session, according
to data from BATS Global Markets.
(Reporting by Angela Moon; Editing by Jan Paschal)