X The market ended May with a dull thud, running losses of 0.1% across the Nasdaq, S&P 500 and Dow Jones industrial average.
It was the Nasdaq's seventh straight monthly advance, ending up 2.4% for May. The S&P 500 managed a 1.1% gain, while the Dow industrials eked out only the thinnest of fractional advances.
Data played a key role in Wednesday's action, with the Dow industrials, Nasdaq and S&P 500 opening higher, then reversing sharply after the release of the Chicago Purchasing Manager Index for May at 9:45 a.m. ET, although a corrected version of the PMI showed a much stronger report.
The first release of the Chicago PMI showed a reading of 55.2, down hard from the prior month's 58.3 tally and below the consensus view for 57.5. The corrected version showed a May reading of 59.4, its highest mark in 2-1/2 years and well above forecasts.
Overnight data out of China showed better-than-expected manufacturing growth in May, but the steel, equipment and mining stocks that would normally react positively to such news came under pressure early in the session. In addition, claims from Libya that production had recovered to above its long-term ceiling of 800,900 barrels helped send crude prices down almost 3%, to $48.32 a barrel, leaving it down 2% for the month.
Stocks fell, then gradually regained ground after the release of the Federal Reserve's May Beige Book, which showed continued modest growth, but increasing signs that optimism could be flagging. The report was closely watched because it's the last Beige Book report ahead of the Fed's meeting on interest rates in June, when a majority of investors expect another increase in rates.
Pfizer (PFE) led the Dow industrials, up 1.6% after announcing that both the Food & Drug Administration and the European Medicines Agency had accepted its submissions to expand the approved use of Sutent to include treatment for recurrent renal cell carcinoma in patients following kidney surgery. Pfizer shares are working on their first weekly advance since late April.
Pressure on the S&P 500 came from Michael Kors (KORS), Tenet Healthcare (THC), Southwestern Energy (SWN) and Goldman Sachs (GS).
Goldman and JPMorgan (JPM) drove the downside among Dow stocks. Goldman tumbled 3% and JPMorgan 2% following the revelation by JPMorgan's CFO Marianne Lake, speaking at an investor conference, that the firm's trading revenue was down 15% year over year.
Losses were more subdued on the Nasdaq, with O'Reilly Automotive (ORLY) and Baidu (BIDU) hardest hit, down 2% apiece. At the top of the Nasdaq 100, Vertex Pharmaceuticals (VRTX) rose 2.7%, taking a new high.
Analog Devices (ADI) thrashed 7% higher at the open, then backtracked to close 1% higher in big trade. The Norwood, Mass.-company reported a big fiscal Q2 earnings win and delivered Q3 revenue and earnings guidance above analyst expectations. Shares ended in a buy range from an 84.34 buy point in a flat base.
IBD 50 stock Control4 (CTRL) roared 8% higher in big trade. Needham upgraded the connected-home software developer to buy, with a 22 price target. The stock is extended after an April rebound from the 10-week moving average.
Drugmaker Perrigo (PRGO) led the S&P 500, up 6% after a strong first-quarter report. But the stock remains deep in a 26-month consolidation.
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