Major U.S. Averages Close Mixed After Somewhat Volatile Session

U.S. stocks ended mixed on Monday after a somewhat volatile session as some disappointing economic data from the U.S., Europe and China weighed on sentiment, prompting investors to largely stay cautious.

Despite early weakness, the Dow ended slightly up at 32,223.42, gaining 26.76 points or 0.08 percent. The S&P 500, which managed to emerge into positive territory around mid afternoon, failed to hold at higher levels and settled with a loss of 15.88 points or 0.39 percent at 4,008.01. The Nasdaq closed with a loss of 142.21 points or 1.2 percent at 11,662.79.

Data showing a contraction in China’s industrial output, and a report showing an unexpected contraction in New York manufacturing activity in May hurt sentiment.

A downward revision in EU growth forecast by the European Commission, and data showing German wholesale price inflation hitting a record high weighed as well.

Energy stocks moved higher as crude oil prices rose sharply on supply concerns and amid bets energy demand in China will pick up once the Covid lockdowns are lifted.

Shares of Eli Lilly gained 2.7 percent after the drugmaker said it has bagged the nod from the regulator for tirzepatide that helps treat adults with type 2 diabetes.

Spirit Airlines shares soared 13.6 percent after JetBlue Airways launched a hostile takeover bid for the discount carrier. JetBlue shares drifted down more than 6 percent.

Chevron, Verizon, Merck, Walgreens Boots Alliance, Caterpillar and IBM gained 1 to 3 percent.

Boeing, Walt Disney and Salesforce.com shed 1.7 to 2.5 percent. American Express, Cisco Systems, Goldman Sachs, Intel and Apple also ended notably lower.

Data from the National Bureau of Statistics showed that China’s industrial output contracted 2.9 percent year-on-year in April, missing expectations for an increase of 0.4 percent and down from 5 percent in March.

According to a report released by the Federal Reserve Bank of New York, manufacturing activity unexpectedly contracted in the month of May, with the general business conditions index plunging to a negative 11.6 in May from a positive 24.6 in April. A negative reading indicates a contraction in regional manufacturing activity.

Economists had expected the index to slump to a positive 15.5, which would have still indicated growth in the sector.

In overseas trading, Asian stocks ended on a mixed note on Monday after the latest data out of China showed the gloomy impact of the country’s “zero-COVID” policy.

European stocks too turned in a mixed performance with investors digesting the latest batch of economic data from the zone, and reacting to the downward revision in growth forecast for the EU countries.

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