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Dow, S&P 500 hit record closes after ISM data revision

The Dow and S&P 500 on Monday again rose to new records following a solid report on US manufacturing activity, even as the Nasdaq lost ground.

NEW YORK: The Dow and S&P 500 on Monday again rose to new records following a solid report on US manufacturing activity, even as the Nasdaq lost ground.

The Dow Jones Industrial Average advanced 26.46 points (0.16 percent) to 16,743.63, while the S&P 500 added 1.40 (0.07 percent) at 1,924.97. It was the third consecutive record close for the S&P 500 and the second for the Dow.

But the tech-rich Nasdaq Composite Index fell 5.42 points (0.13 per cent) to 4,237.20.

Markets got an unexpected lift mid-session when the Institute of Supply Management said its purchasing managers index of US manufacturing activity rose in May to 55.4 from 54.9 in April, rather than slowing to 53.2 as it first reported.

Stocks had fallen on the initial report in the morning. ISM hours later corrected the data after economists questioned the PMI decline.

Art Hogan, chief market strategist at Wunderlich Securities, said the market could rise further this week given a heavy schedule of potential catalysts, from Apple developer conference under way to Friday's May jobs report.

"Good news is going to move the market higher," Hogan said.

"The bottom line is the market is staying stubbornly high," said Peter Cardillo, chief market economist at Rockwell Global Capital. "It doesn't want to pull back."

Nasdaq heavyweight Apple fell 0.7 per cent after unveiling a next-generation operating system called "Yosemite" and new iOS 8 software for iPads, iPhones and iPod devices at the sold-out developers conference.

Semiconductor company Broadcom shot up 9.3 per cent after announcing that it hired investment bank JPMorgan Chase to explore the sale or "wind-down" of its cellular baseband business, which is expected to shave US$700 million in annual expenses.

Bristol-Myers Squibb declined 1.3 per cent following an investor update on its immuno-oncology treatments pipeline. BMO Capital Markets said the presentation reinforces its "cautious" assessment of the commercial viability of its leading treatments under development.

Real estate investment trust Ventas will acquire American Realty Capital Healthcare Trust, which owns medical office buildings and other health-care and aging facilities, for US$2.6 billion, the companies announced. Ventas dropped 2.8 per cent while American Realty jumped 9.7 per cent.

Activist investor Pershing Square Management filed papers calling for the removal of six directors of Botox-maker Allergan, which has opposed an unsolicited takeover campaign by Pershinq Square and Valeant Pharmaceuticals International. Allergan rose 2.9 per cent, while Valeant advanced 2.3 per cent.

Bond prices fell. The 10-year US Treasury rose to 2.53 per cent from 2.46 per cent on Friday, while the 30-year increased to 3.38 per cent from 3.31 per cent. Bond prices and yields move inversely.

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