Stocks quickly erased early losses but remained mixed today as investors weighted a better than expected reading of the ISM manufacturing index and higher construction spending against weak Chinese economic data and the Gulf oil spill.
Construction spending rose 2.7% in April with a 4.5% boost in residential spending. Economists had expected overall spending to be flat. The surprise increase bodes well for sustainability of the economic recovery, as constriction spending is an important signal of economic growth.
The closely watched ISM manufacturing index edged down to 59.7 from 60.4 in April--a smaller decrease than expected. Any reading over 50 indicates the manufacturing sector is expanding.
(not bad news today, it’s good for this whole week)
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