Major Averages Turning In Mixed Performance In Mid-Day Trading

(RTTNews) - With traders digesting news of a correction to a disappointing reading on U.S. manufacturing activity, stocks have shown a lack of direction over the course of the trading day on Monday. The major averages have spent the day bouncing back and forth across the unchanged line.

While selling pressure was initially generated by a report from the Institute for Supply management showing an unexpected slowdown in the pace of growth in the manufacturing sector, the group later revealed that the data was incorrect.

Due to a software error that applied last month's seasonal adjustment factor to this month's data, the ISM originally said its manufacturing index dropped to 53.2 in May from 54.9 in April.

However, the ISM later clarified that the index should have risen to 56.0 in May, which would have come in above the 55.5 expected by economists. A reading above 50 indicates growth in the sector.

Most of the major sectors are showing only modest moves in mid-day trading, contributing to the lackluster performance by the broader markets.

While some strength has emerged among chemical stocks, weakness remains visible in the networking and computer hardware sectors.

Currently, the major averages are turning in a mixed performance. While the Nasdaq is down 6.54 points or 0.2 percent at 4,236.08, the Dow is up 19.35 points or 0.1 percent at 16,736.52 and the S&P 500 I sup 0.74 points or less than a tenth of a percent at 1,924.31.