Stocks Rise Following Strong Report on U.S. Manufacturing

(AP) -
Traders gather at a post on the floor of the New York Stock Exchange, Wednesday, May 26, 2021, in New York. (Courtney Crow/New York Stock Exchange via AP)

Stocks were mostly higher Tuesday morning as investors returned from a three-day holiday weekend in the U.S, helped by economic data that showed manufacturing growing steadily as the coronavirus pandemic wanes in the U.S.

The S&P 500 index was up 0.1% as of 11:34 a.m. Eastern. The Dow Jones Industrial Average rose 116 points, or 0.3%, to 34,644 and the Nasdaq slipped 0.2%.

Banks were among the biggest gainers as bond yields ticked higher, which allows them to charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 1.63% from 1.59% Friday. U.S. markets were closed Monday for Memorial Day. Bank of America rose 1.6%.

Energy companies also helped lift the broader market. Crude oil prices jumped more than 2%, giving oil producers a boost. Exxon Mobil rose 2.9%.

The Institute for Supply Management reported that manufacturing picked up again in May. The ISM”s manufacturing index came in at 61.2 last month, much better than the 60.6 expected by economists surveyed by FactSet.

The growth in manufacturing came despite supply shortages that have plagued many manufacturers for weeks, particularly those who require semiconductors.

It’s the latest piece of economic data that has shown the U.S. economy growing quickly out of the coronavirus pandemic. Investors will get jobs data later this week, which is expected to show that U.S. employers created 663,000 jobs last month.

AMC jumped 16.9% after the movie theater operator announced a stock sale. AMC, whose stock is up more than 1,000% this year, is one of a handful of companies that gained the attention of a group of online retail investors earlier this year, along with companies like GameStop.