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Stocks Recover From Manufacturing Data Snafu as Broadcom Spikes

NEW YORK (TheStreet) -- The Institute for Supply Management forgot to correctly tally its own numbers when reporting its well-tracked index for May, sending shares yo-yoing on Monday.

Initially, the ISM reported a reading of 53.2, but then quickly revised the figure to 55.4 for May, a much healthier figure given than its index reported 54.9 in April. Once the confusion was made public, the revised reading gave investors confidence that U.S. manufacturing is expanding at a much stronger rate after a mediocre start to the year.

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Markets, though, dove early in the day before recovering on the data correction. The tech-heavy Nasdaq was not as fortunate, closing 0.1% lower to 4,237.2. By market close, the Dow Jones Industrial Average had gained 0.2% to 16,743.63 while the S&P 500 broke free from flat trading to end 0.1% higher at 1,924.97.

Tiny gains shouldn't concern Wall Street though; a breather is well-deserved given the record-setting levels the S&P 500 climbed to over a historically-weak May.

Gains on overall markets might have been relatively small, but a few big-caps were making big moves. Broadcom (BRCM) spiked 9.3% to $34.82, with trading volume nearly seven times its average. The chipmaker said it was exploring a potential sale of its cellular baseband segment which could result in $700 million in cost savings.

Ariad Pharmaceuticals (ARIA - Get Report) was also a big mover, up 7.2% to $6.93, on new trial results of Iclusig, a drug previously suspended on blood-clotting worries.

After the bell, Krispy Kreme (KKD) and Quiksilver (ZQK) were plummeting 7.9% and 20%, respectively, on poor earnings results. The former earned 23 cents a share over its first quarter, inline with analysts' estimates. Quiksilver reported a net loss of 15 cents a share, 13 cents wider than analysts surveyed by Thomson Reuters forecast. 

-- Written by Keris Alison Lahiff in New York.

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