U.S. stocks closed higher Monday as investors shook off concerns about the economy following a batch of mixed economic reports on consumer spending and the manufacturing sector. Monday’s gains were driven by the technology and industrial sectors.
The Dow Jones Industrial Average (INDEXDJX:.DJI) gained 29.69 points, or 0.16 percent, to close at 18,040. The Standard & Poor's 500 (INDEXNASDAQ:.IXIC) added 4.34 points, or 0.21 percent, to finish at 2,112. The Nasdaq composite (INDEXSP:.INX) rose 12.90 points, or 0.25 percent, to end at 5,083.
Wall Street is looking ahead to Tuesday’s release of motor vehicle sales for major auto companies, including General Motors Company, Ford Motor Company and Fiat Chrysler Automobiles. Economists forecast U.S. auto sales hit an annual rate of 17 million in May, up from 16.5 million in April, according to analysts polled by Thomson Reuters.
Shares of General Motors Company (NYSE:GM) have gained 3 percent so far this year while shares of Ford Motor Company (NYSE:F) have lost nearly 1 percent. Shares of Fiat Chrysler Automobiles NV (NYSE:FCAU) stock price has soared 40 percent.
The Dow Jones transportation average gained more than 1 percent, with airliners helping the index reverse following a sharp decline the previous session due to a losses in railroad stocks. Delta Air Lines Inc. (NYSE:DAL) and United Continental Holdings Inc. (NYSE:UAL) gained 3.4 percent and 3.1 percent, respectively.
The transportation average, which fell below its 200-day moving average last week, has lost more than 8 percent this year.
The S&P 500 industrial sector edged higher, led by a 4 percent gain from American Airlines Group Inc. (NASDAQ:AAL).
Dow component Microsoft Corporation (NASDAQ:MSFT) led the blue-chip index higher Monday, adding nearly 1 percent. Meanwhile, Intel Corporation (NASDAQ:INTC) was the biggest laggard in the blue-chip index, shedding 1.6 percent. Shares of Goldman Sachs Group Inc. (NYSE:GS) edged up 0.8 percent.
U.S. stocks traded lower in morning trading following a batch of mixed economic reports. Consumer spending, which accounts for nearly two-thirds of U.S. economic activity, was flat in April as Americans remained cautious and kept income gains in savings.
Separately, construction spending rose 2.2 percent to an annual rate of $1.0 trillion, the Commerce Department said Monday, which was the highest level since November 2008.
Meanwhile, the pace of manufacturing growth rose in May, rebounding from its slowest pace in almost two years. The index of national factory activity came in at 52.8 in May, up from April's reading of 51.5, the Institute for Supply Management (ISM) said Monday. The index bounced back after April and March’s readings were the lowest since May 2013.
Crude oil closed mildly lower Monday after rallying 5 percent to its highest price in more than a month the previous session. Output from the Organization of the Petroleum Exporting Countries remained high last month as OPEC pumped 31.22 million barrels of oil per day in May, a two and a half year high, a Reuters survey showed.
Following the report, West Texas Intermediate crude, the benchmark for U.S. oil prices, edged down 0.2 percent to close at $60.20 a barrel, for July 15 delivery on the New York Mercantile Exchange. Brent crude, the benchmark for global oil prices, lost 75 cents to end at $64.80 a barrel, for July 15 delivery on the London ICE Futures Exchange.