* Services sector grows in April, fastest pace in 8 months
* JPMorgan leads banks lower after trading revenue warning
* Apple shares rise above $600
* Dow up 0.1 pct, S&P up 0.2 pct, Nasdaq up 0.3 pct
(Updates to close)
By Caroline Valetkevitch
NEW YORK, May 5 U.S. stocks ended slightly
higher as data showed strength in the services sector and Apple
shares rose above $600 for the first time since 2012.
Limiting the day's gains, however, were concerns over an
escalation of tensions between Ukraine and pro-Russia
separatists. Ukrainian forces were ambushed by separatists,
triggering heavy fighting on the outskirts of the rebel
stronghold of Slaviansk, a day after a Ukrainian police station
in Odessa was stormed.
The Institute for Supply Management said its services sector
index rose in April, hitting the fastest pace in eight months
and topping expectations. It was the latest
report to offer some upbeat news on the economy, which was hit
by an unusually harsh winter.
"We shook off a lot of the morning jitters, and the ISM
services came out and showed pretty good growth, and that
obviously brought back some buyers," said Ryan Detrick, senior
technical strategist at Schaeffer's Investment Research in
Apple shares, up 1.4 percent at $600.96, led both
the S&P 500 and Nasdaq higher. Late in the session, the stock
rose above $600 and also closed above the key level for the
first time since Oct. 26 2012.
The Dow Jones industrial average rose 17.66 points or
0.11 percent, to 16,530.55, the S&P 500 gained 3.52
points or 0.19 percent, to 1,884.66 and the Nasdaq Composite
added 14.158 points or 0.34 percent, to 4,138.055.
On the downside, shares of JPMorgan Chase fell 2.4
percent to $54.22, the biggest drag on the S&P 500. The bank
said late on Friday it expects second-quarter revenue from bond
and equity trading to decline by about 20 percent from a year
earlier. The S&P financial index fell 0.4 percent.
Shares of Fannie Mae and Freddie Mac gained after activist
investor William Ackman recommended the shares of mortgage
finance giants during the Sohn Investment Conference in New
York. Fannie was up 3 percent at $4.10 while Freddie
was up 6.3 percent at $4.23.
Pfizer Inc shares fell 2.6 percent to $29.96 after
gaining last week. The biggest U.S. drugmaker reported revenues
well below analysts' expectations.
(Editing by Bernadette Baum and Nick Zieminski)