The broad indexes ended mixed, after the Institute for Supply Management reported that its manufacturing index declined to 49.7% during June from May's reading of 53.5%. A reading above 50% indicates manufacturing sector expansion, while a reading of less than 50% indicates contraction. June was the first month for which the index read below 50% since July 2009.
The Institute for Supply Management also said that its New Orders Index dropped "dropped 12.3 percentage points in June, registering 47.8 percent and indicating contraction in new orders for the first time since April 2009, when the New Orders Index registered 46.8 percent."
In rosier economic news, the Commerce Department reported that total U.S. construction spending increased to a an estimated seasonally adjusted annual pace of $830.0 billion during May, increasing from a revised April estimate of $822.5 billion. A year earlier, estimated construction spending was at an annual pace of $775.8 billion.The KBW Bank Index (I:BKX) rose 1% to close at 46.08, with all but three of the index components rising for the session. Bank of America's shares have now returned 45% year-to-date, after dropping 58% during 2011.
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