11:35 AM New York – Stocks on Wall Street eased after construction spending rose less than expected and a private survey of U.S. manufacturing showed an unexpected slowdown. Markets in Asia closed higher and European markets focused on latest deals.
Stocks on Wall Street declined after the latest private survey of manufacturing showed an unexpected slowdown.
S&P 500 index decreased 4.49 to 1,919.08 and the Nasdaq Composite Index declined 22.71 to 4,219.91.
Slower Rise in U.S. Construction Spending
Construction spending increased 0.2% to an annual rate of $953.5 billion in April, the Commerce Department reported today.
Spending in March was revised higher to an increase of 0.6% from the previous estimate of 0.2% rise.
Government spending on construction increased 0.8% and private construction was flat with 0.1% decline in residential buildings was offset by a 0.1% decrease in non-residential projects.
Manufacturing Growth Cools
The private survey conducted by the Institute for Supply Management showed manufacturing index unexpectedly declined to 53.2 from 55.5 in April.
The U.S. slowdown was driven by cooling off in new orders, production activities and new recruitment.
In London trading, FTSE 100 index rose 0.2% or 12.57 to 6,857.08 and in Frankfurt the DAX index slid 0.2% or 15.45 to 9,927.82.
In Paris, CAC 40 index fell 0.3% or 11.22 to 4,508.35.
In European corporate news, Alcatel Lucent plans to issue €1 billion of convertible bonds and Bilfinger plans to sell its civil engineering division. Det norske agreed to buy Norwegian operations of Marathon Oil for $2.7 billion.
Henkel agreed to acquire three hair care companies in the U.S. for €270 million.
Stocks in Tokyo advanced after investors looked overseas and the yen eased and investors took an optimistic view of auto sales in India and manufacturing index in China.
Dai-ichi Life Insurance is said to be nearing purchase of the U.S. based Protective Life Corp for at least $4.9 billion.
The Nikkei 225 Stock Average climbed 303.54 or 2.1% to 14,935.92 and the broader Topix index jumped 19.06 or 1.6% to 1,220.47.
The yen closed at 102 against one U.S. dollar.
Purchasing Manager’s Index increased to 50.8 in May, the highest reading since December, the National Bureau of Statistics and China’s Federation of Logistics & Purchasing said today in Beijing.