US open: Equities climb after manufacturing data

US stocks advanced early on Monday, as investors digested a raft of mixed manufacturing data and earnings reports.

Shortly after 1500 GMT, the Dow Jones Industrial Average was up 85 points to 17,748.74, while the S&P 500 and the Nasdaq were respectively 10 and 24 points higher.

Mixed manufacturing data

On the economic data front, the US ISM manufacturing index fell to its lowest level since May 2013 last month, declining to 50.1 from 50.2 in September, but remaining marginally above analysts’ expectations for a 50 reading.

The employment sub-index declined to 47.6, its lowest level post the 2009 recession, while the ISM’s new-orders index climbed 2.8 points to a three-month high of 52.9.

Meanwhile, Markit’s manufacturing purchasing managers’ index rose from 54 in September to 54.1 last month, slightly above the flash reading of 54.

Elsewhere, according to the Commerce Department, construction spending grew 0.6% month-on-month in September, compared with analysts' expectations of a 0.5% gain but slightly below the 0.7% increase recorded in the previous month.

Still to come, San Francisco Federal Reserve president John Williams will speak at a Fed conference in San Francisco at 1700 GMT.

In company news, payments technology group Visa fell 3.40% after it announced an agreement to acquire Visa Europe in a deal worth as much as €21.2bn (£15.1bn).

The group posted a 41% year-on-year increase in fourth quarter profit to $1.51bn, as the $283m it booked in charge litigation expenses in the previous year did not recur, while adjusted profit excluding one-off items came in at 62 cents a share, slightly below consensus of 63 cents a share.

Restaurant chain Chipotle Mexican Grill declined 3.96% after revealing it closed 43 of its Washington state and Oregon stores over an investigation into an E.coli outbreak.

Going the other way, skincare and makeup products manufacturer Estee Lauder jumped 8.66% after its quarterly profit surged and the group lifted its dividend.

Elsewhere, Asian markets were dragged lower after data showed a private gauge of China’s manufacturing activity remained in contraction for the eighth consecutive month, while European stocks edged higher after some positive PMI data.

The dollar was broadly flat against both the pound and the yen but fell 0.29% against the euro, while gold futures shed 0.60% to $1,135.29.

Oil prices declined, as West Texas Intermediate lost 1.24% to $46.02 a barrel, while Brent fell 1.22% to $48.96 a barrel.