US open: Stocks fluctuate in data-heavy session

US stocks fluctuated early on Monday, as investors digested a raft of economic data, including reports on the construction and manufacturing sectors.

Just after 15:00 BST, the Dow Jones Industrial Average was down 22 points, while the S&P 500 and the Nasdaq gained three and five points respectively.

Construction spending jumps

US personal incomes increased at a 0.4% month-on-month in April, according data from the Department of Commerce showed, against expectations for a 0.3% increase.

Spending as measured by personal consumption expenditures was flat in comparison with the prior month against consensus for a 0.1% increase.

"We continue to expect consumer spending to bounce back and Tuesday’s vehicle sales should confirm our view of sharply stronger consumption in May," analysts at Barclays said in a note.

In year-on-year terms, the gauge for personal consumption expenditures advanced by just 0.1% against expectations for 0.2% rise, while the core rate for the PCE index edged lower to 1.2% from 1.3% in March.

"We expect goods prices to be a very modest drag on PCE as the pass through from the lower imported inflation on goods prices seems to be more measured than initially expected," analysts at Barclays added.

"This, coupled with continued strength from services prices, will likely keep underlying price pressures firm in the coming months, in our view."

US construction spending jumped in April driven by large gains in both private and public sector outlays, as spending rose 2.2% month-on-month to reach $1.01trn, according to the Department of Commerce against expectations for a rise of 0.7%.

Private sector construction spending rose 1.8% month-on-month hitting $725.2bn, while in the public sector it grew 3.3% to reach $280.9bn.

Meanwhile, the Institute for Supply’s Management manufacturing index exceeded expectations in May, rising 1.3% month-on-month to 52.8% last month, marginally higher than the 51.8% reading analysts had expected.

Fed warning

Meanwhile, Stanley Fischer, the vice chairman of the Federal Reserve, said the US central bank should not rule out using monetary policy to fight financial instability.

"Regulations have been strengthened and the bankers' backlash is both evident and making headway," Fischer said at the International Monetary Conference in Toronto.

In company news, tech giant Intel edged 0.64% as group announced a $16.7bn deal to acquire semiconductor producer Altera, whose shares surged 5.94%.

OM Group surged 28% after the diversified-industrial company agreed to be bought by units of private-equity firm Apollo Global Management LLC for $34 a share in cash.

China drags Asian markets higher

Elsewhere, the Shanghai Composite index jumped 4.71% and Hong Kong's Hang Seng finished up 0.63% as figures showed that China's manufacturing activity improved from April.

The official manufacturing Purchasing Managers' Index nudged up to 50.2 in May from 50.1 points, in line with forecasts.

The HSBC manufacturing PMI also rose, to 49.2 from 49.1, although this was still below the 50-point threshold that separates expansion from contraction.

European stocks edged higher, although concerns remained over Greece’s future, as Athens faced a deadline to make a debt repayment to the IMF on Friday.

The dollar slid 0.13% against the yen but but rose by the same margin against the pound and was broadly stable against the euro, while gold futures fell 0.40% to $1,185.00.

Oil prices fell, with West Texas Intermediate losing 0.23% to $60.16 a barrel, while Brent shed 0.57% to $65.19 a barrel.