Stocks eeked out modest gains in the first trading day of the month, taking a break after strong advances in May. Bobbi Rebell reports.
The month of June began with a somewhat indecisive trading session. Stocks coming back from intraday losses to close with modest gains Nick Colas, chief market strategist at Convergex. (SOUNDBITE) NICK COLAS, CHIEF MARKET STRATEGIST, CONVERGEX, (ENGLISH) SAYING: "The first is that the first day of the month has tended to see new money inflows into U.S. stocks over the course of this year. So, we expect to see some kind of lift." New economic data here in the U.S. showed that while U.S. manufacturing activity expanded for a third straight month in May, growth in new orders continued to slow. A separate report showed the construction spending had its biggest decline in more than five years in April. The U.S. auto industry hit some speed bumps in May. Major automakers including General Motors and Ford Motor reporting lower vehicle sales blaming weak demand for sedans and fewer selling days. Michael Kors reporting its strongest quarterly sales growth in a year. Demand surged for its handbags and accessories in the Americas. Kors is also buying back up to a billion dollars in shares, and that help lift Kors stock on Wednesday. Demandware stock surged after Salesforce.com agreed to buy it for $2.8 billion. Red arrows across the board in Europe- the markets hit by a drop in commodity stocks and banks.