US close: Equities mixed as reopening stocks lead gains

Wall Street stocks finished as they started on Tuesday, in a mixed state, as markets returned from an extended break for the Memorial Day long weekend.

At the close, the Dow Jones Industrial Average was up 0.13% at 34,575.31, while the S&P 500 slipped 0.05% to 4,202.04 and the Nasdaq Composite was off 0.09% at 13,736.48.

The Dow closed 45.86 points higher on Tuesday, paring back some of its earlier gains but still extending from those recorded on Friday, amid a further drop in the number of new Covid-19 cases reported across the country.

Those moves also came after the Centers for Disease Control said more than half the US population had received at least one dose of a Covid-19 vaccination, with more than 62% of adults receiving at least one dose.

Optimism was further boosted by news that the US recorded just 12,663 new cases on Saturday, the lowest figure seen since March 2020.

On the macro front, IHS Markit's final manufacturing PMI for May improved to 62.1 from 60.5 in April, ahead of a flash estimate and market expectations for a print of 61.5, indicating an ongoing expansion in the manufacturing sector's business activity.

Elsewhere, the ISM's manufacturing PMI edged higher in May, coming in at 61.2, ahead of an expected reading of 60.7.

Still on data, US construction spending increased less than expected in April, with spending edging just 0.2% higher after surging 1.0% in March, according to the Commerce Department, as gains in private homebuilding were offset by losses in outlays on non-residential structures and public projects.

In equities, stocks reliant on a reopening of the US economy were trading higher, with Carnival up 2%, Norwegian Cruise Line ahead 2.7% and Boeing in the green by 3.12%.

American Airlines and United ascended 1.77% and 2.26%, respectively, after the Transportation Security Administration said it had screened an average of 1.78m people between Friday and Monday - a significantly higher volume than seen a year earlier.

AMC Entertainment was also in focus, surging 22.66% after it sold $230.5m in new stock to an investor.

Dow Jones - Risers

Boeing Co. (BA) $254.73 3.12%
Dow Chemical Co. (DOW) $70.41 2.91%
Goldman Sachs Group Inc. (GS) $382.44 2.80%
Chevron Corp. (CVX) $106.65 2.76%
American Express Co. (AXP) $163.76 2.27%
JP Morgan Chase & Co. (JPM) $166.05 1.10%
Travelers Company Inc. (TRV) $160.89 0.75%
Caterpillar Inc. (CAT) $242.76 0.70%
Walgreens Boots Alliance, Inc. (WBA) $52.84 0.34%
International Business Machines Corporation (CDI) (IBM) $144.16 0.31%