Wall Street higher despite Chinese plunge
EmptyNEW YORK -- Wall Street recovered from a mostly down session Monday, ekeing out a gain as investors brushed off another slide in Chinese stocks.
The market had little in the way of corporate or economic news to give it direction, but while it was in negative territory for much of the day, in the end it shook off an 8.3% slide in the benchmark Shanghai Composite Index. The Chinese index had its biggest one-day drop since the Feb. 27 plunge that set off a brief global market selloff as the Chinese government attempts to cool the country's market boom.
Investors used Monday to adjust positions after both the Standard & Poor's 500 and Dow Jones industrial average surged to record closes in the previous session. The market was encouraged by economic data released last week that suggested the economy was slowing, but not too quickly, and inflation remained in check.
However, on Monday the Commerce Department reported that orders to U.S. factories were weaker-than-expected in April. Investors might find some information to trade from with the release of the Institute of Supply Management's manufacturing index on Tuesday, but not much else is on tap.
"I think you're seeing a combination of investors wanting to take some profit on a Monday morning, and some fear because of what happened in China," said Ryan Detrick, a senior technical strategist for Schaffer's Investment Research. "There's really no major drivers in the market, so we're really just meandering along."
According to preliminary calculations, the Dow rose 8.21, or 0.06%, to 13,676.32.
Broader stock indicators also narrowly mixed. The S&P 500 index rose 2.84, or 0.18%, to 1,539.18, and the Nasdaq composite index rose 4.37, or 0.17%, to 2,618.29.