* Services sector grows in April, fastest pace in 8 months
* JPMorgan leads banks lower after trading revenue warning
* Apple shares close above $600 for the first time since
Oct. 26, 2012
* Dow up 0.1 pct, S&P up 0.2 pct, Nasdaq up 0.3 pct
(Updates close with latest volume, AIG down after the bell)
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 late 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's services sector index
hit the fastest pace in eight months in April, topping
expectations. It was the latest report to offer
upbeat news on the economy after an unusually harsh winter.
"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 Cincinnati, Ohio.
Apple shares, up 1.4 percent at $600.96, led both
the S&P 500 and Nasdaq higher. Late in the session, the stock
broke above $600, and it closed above the 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.
Short-term upward trendlines were tested in the S&P 500 and
the Dow but not broken, said Adam Sarhan, chief executive of
Sarhan Capital in New York, suggesting the uptrend is not over.
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.
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 Friday it expects second-quarter revenue from bond and
equity trading to decline about 20 percent from a year ago. The
S&P financial index fell 0.4 percent.
Pfizer Inc shares fell 2.6 percent to $29.96. The
biggest U.S. drugmaker reported revenues well below analysts'
After the bell, shares of American International Group Inc
declined 1.9 percent to $51.70 after it posted a 27
percent fall in quarterly income.
During the regular session, Target Corp shares fell
3.5 percent to $59.87. Chief Executive and Chairman Gregg
Steinhafel will leave the No. 3 U.S. retailer in the wake of a
data breach last year that hurt profits, shook customer
confidence and prompted congressional hearings.
But shares of B/E Aerospace jumped 9.3 percent to
$97.22. German aircraft seating maker Recaro said it was
studying the possibility of buying B/E Aerospace assets after
the U.S. company announced a surprise review.
About 5 billion shares changed hands on U.S. exchanges, well
below the 6.7 billion average for the last five sessions,
according to data from BATS Global Markets.
(Editing by Bernadette Baum and Nick Zieminski)