NEW YORK (AP) — Stocks were moving slightly lower in early trading Monday following the release of a closely watched report that showed an unexpected slowdown in U.S. manufacturing last month. The market is coming off record highs last week.
KEEPING SCORE: The Dow Jones industrial average fell 20 points, or 0.1 percent, to 16,695 as of 10:10 a.m. Eastern. The Standard & Poor’s 500 index lost seven points, or 0.4 percent, to 1,917 and the Nasdaq composite dropped 31 points, or 0.7 percent, to 4,213. The Dow and S&P 500 both closed at record highs on Friday.
MANUFACTURING: The Institute for Supply Management said that its manufacturing index fell to 53.2 in May, short of what economists had expected. The index was expected to come in at 55.5, up from April’s reading of 54.9, according to FactSet. The index indicates that U.S. manufacturing is still expanding, but at a slower pace.
MADE IN CHINA: The economic news out of Asia was a little more encouraging. A Chinese manufacturing index edged up to 50.8 in May from 50.4 in April. Asian stocks rose on the report. Japan’s Nikkei increased 2.1 percent.
ANOTHER HEALTHCARE DEAL: The real-estate investment trust Ventas said it has reached a deal to buy American Realty Capital Healthcare Trust Inc. in a $2.6 billion cash-and-stock deal. The companies each own medical care offices along with other properties. A.R.C.’s stock rose 97 cents, or 10 percent, to $10.91 while Ventas fell $1.41, or 2 percent, to $65.39.
BONDS PULL BACK: The yield on the 10-year Treasury note rose to 2.51 percent from 2.48 percent on Friday. Even with the modest increase, bond yields are still trading near their lows for the year.