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Rocky start, smooth finish for U.S. stocks

Monday, June 02, 2014 - 02:26

June 2 - The S&P 500 and Dow set records, despite mistakes to key manufacturing data early in the trading day; no eyepoppers at Apple WWDC; China blocks Google; Icahn insider trading investigation. Lily Jamali reports.

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U.S. stocks end a choppy session after economic confusion. The S&P 500 and the Dow ended at a record. The Nasdaq ended down. The rocky start coming in part from mistakes by a research firm that tracks manufacturing data. Two corrections later, final Institute for Supply Management numbers shows national factory activity heating up in May. The results were backed up by financial data firm Markit's Purchasing Managers Index, which also rose for the month. A separate report on construction spending showed growth in April, albeit lower than expected. Despite May's strong market finish, trading volume has been weak. Bob Keiser of S&P Capital IQ says that may change with the economy appearing to gain steam: SOUNDBITE: BOB KEISER, V.P. GLOBAL MARKETS INTELLIGENCE RESEARCH, S&P CAPITAL IQ (ENGLISH) SAYING: "If the economy starts to heat up and we see more increases in core inflation, the market will start discounting higher interest rates and that'll be sure to inject more volatility in all the financial markets, risk, credit markets, equity markets, all of them." Apple CEO Tim Cook kicking off the Worldwide Developers Conference in San Francisco. No eye-popping news, but Cook says the company has now sold 800 million mobile devices, with 130 million first-time mobile customers in just the last year. To build on that, Apple unveiled new computing and mobile software, and a further push into the cloud. Investors were not impressed - shares finished the day lower. Google services have been disrupted in China ahead of this week's 25th anniversary of the Tiananmen Square massacre. According to censorship watchdog GreatFire.org, Google's main search engine and Gmail have reportedly been blocked for many Chinese users since at least last week. Google shares ended the day lower. Chipmaker Broadcom saw a big bounce, after saying it is putting part of its wireless chip business up for sale. What do activist investor Carl Icahn, Pro-golfer Phil Mickelson and Sports gambler William Walters have in common? According to the New York Times, they're all part of a federal investigation into insider trading. The investigation has to do with Icahn's attempts to gain board access at Clorox in 2011, and whether Mickelson and Walters may have been tipped off ahead of time. In Europe, shares ended mostly higher. A slowdown in EU factory growth boosted expectation that the ECB will make aggressive moves when it meets later this week.

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Rocky start, smooth finish for U.S. stocks

Monday, June 02, 2014 - 02:26