U.S. Stocks Finish Mixed on Disappointing Manufacturing Data

U.S. stocks closed mixed Monday, mostly recovering from deeper declines recorded earlier after data showed that manufacturing activity in North America slipped into contraction territory in June, for the first time in three years.

The Institute for Supply Management's index fell to 49.7% in June, down from 53.5% in May, and below the consensus estimate of 52.3%, according to a MarketWatch poll of economists. The Markit Economics' PMI dropped to 52.5, falling short of last week's flash estimate of 52.9.

Data on construction spending was the one bright spot in today's economic reports. Month-over-month, construction projects jumped 0.9% in May, to a seasonally adjusted annual rate of $830 billion, the biggest increase of the year. Analysts had forecast a 0.2% increase.

China reported its manufacturing data over the weekend. The final reading of HSBC's China purchasing-managers' was 48.2, down from 48.4 in May, and its lowest level since March 2009.

In company news, Duke Energy Corp. (DUK) and Progress Energy Inc. (PGN) cleared the last hurdle to their proposed $26 billion merger with a vote by South Carolian regulators at a brief meeting Monday morning. The companies will move quickly to complete the necessary paperwork and close the merger, according to Duke spokesman Greg Efthimiou, which could happen as early as Monday afternoon or evening. No announcement is expected until Tuesday morning.

In commodities, crude futures were impacted by the weak manufacturing data, and pulled back after Friday's aggressive gains. Crude for August delivery fell 1.4%, to settle at $83.75 a barrel on the New York Mercantile Exchange. Gold also retreated, declining $6.50, or 0.4%, to end at $1,597.70 an ounce on the Comex division of the New York Stock Exchange.

Here is Where the Major Stock Indices Stood at End-of-Day

The Dow Jones Industrial Average down 8.70 (-0.07%) to 12,871.39

The NASDAQ Composite up 3.35 (+0.25%) to 1,365.51

The S&P 500 up 16.18 (+0.55%) to 2,915.23

GLOBAL SENTIMENT

Nikkei 225 down 0.04% (-3.30) to 9,003.48

Hang Seng Index closed for a public holiday

Shanghai China Composite Index up 0.03% (+0.68) to 2,226.11

FTSE 100 up 0.96% (+53.51) to 5,624.66

UPSIDE MOVERS

(+) RITT, Announces Private Share Purchase Agreement

(+) TGAL, Company Acquires CollabRx

(+) MEMC, Announces Q2 Solar Projects

DOWNSIDE MOVERS

(-) GRPN, Susquehanna Reduces Price Target

(-) OPEN, Barclay's Downgrades to Equalweight from Overweight

(-) LQDT, Negative Wall Street Research