US Stocks Open Higher but Struggling for Direction
Major stock indices in the US opened slightly higher on Monday after a
reading of New York-area manufacturing conditions failed to boost
investor sentiment.
The Empire State manufacturing Index for May nose-dived to a negative
reading of 9, from positive 9.6 in April. Moreover, weaker economic data
from China, released over the weekend also weighed on investor
sentiment.
At the time of writing, the S&P 500 was up 8 point to 2055 and the
Dow Jones Industrial Average gained 80 point at open to trade at 17,615.
Meanwhile, tech heavy Nasdaq Composite began the session with nearly
0.5% gain or 22 points, at 4740.
After closing sharply lower on Friday, for third consecutive week, the
indices struggled for direction at the beginning after Chinese economic
data continued to point towards broad based economic slowdown in the
world's second largest economy. The negative sentiment across Chinese
economic data overshadowed firmness in crude oil prices. However,
notable M&A news of Pfizer Inc.’s proposed purchase of Anacor
Pharmaceuticals provided some boost to the market.
Markets this week will remain focused on the minutes of the Federal
Reserve's April policy meeting, scheduled for release on Wednesday. With
anxiousness among investors over the prospects of a Fed rate-hike in
June, markets might display further signs of exhaustion at higher
levels.
