* Dow, S&P 500 close at record highs on light volume
* ISM corrects May factory data after hours of confusion
* Apple, Google shares weigh on Nasdaq
* Dow up 0.2 pct; S&P up 0.1 pct; Nasdaq off 0.1 pct
(Updates to close)
By Angela Moon
NEW YORK, June 2 The Dow and the S&P 500
finished at record highs again on Monday after a closely watched
read on U.S. manufacturing was revised to show more strength
than initially indicated.
Industrials and material stocks were among the day's biggest
gainers, while the technology sector ended lower, weighed down
by big names like Apple and Google.
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
in May. Wall Street fell initially after the first report, with
all 10 S&P 500 sector indexes down for the day at one point.
"The market has lately been focused more on the weak
economic news and the bond market, but we saw a reversal of that
today with the revised (ISM) numbers. We got a better number and
the bonds are selling off," said Rick Meckler, president of
hedge fund LibertyView Capital Management in Jersey City, New
"But it's hard to move the market higher, considering we are
fairly fully valued at this point."
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 26.46 points or
0.16 percent, to 16,743.63. The S&P 500 gained 1.40
points or 0.07 percent, to 1,924.97. But the Nasdaq Composite
dropped 5.42 points or 0.13 percent, to 4,237.20.
The Dow ended at a second consecutive record high while the
S&P 500 closed at a third consecutive record though volume was
still slight, suggesting a lack of conviction behind the
advance. Both the Dow and the S&P 500 also set lifetime intraday
highs on Monday.
The CBOE Volatility Index gained 1.6 percent but was
still near the lows not seen since March 2013. The drop in the
"fear index" to such lows has many, including Federal Reserve
officials, concerned that the market is complacent.
Apple shares slid 0.7 percent to $628.65 after the
tech giant introduced new operating systems for its Mac
computers and mobile devices at its annual Worldwide Developers'
Google Inc also pressured tech shares, falling 1.3
anpercent to $564.34. A censorship watchdog said Google'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, jumping 9.3 percent to $34.84 after the chipmaker said
it was looking to sell or wind down its cellular baseband
Ariad Pharmaceuticals Inc shares shot up 4 percent
to $6.94 in heavy volume a day after the company said its drug
ponatinib showed anti-tumor activity in patients with advanced
gastrointestinal stromal tumors.
Trading volume was around 4.68 billion shares on U.S.
exchanges, below last month's average of 5.75 billion, according
to data from BATS Global Markets.
(Reporting by Angela Moon; Editing by Jan Paschal)