Stocks End Mixed on Worries of Tighter Federal Reserve Policy

Stocks end mixed as investors' optimism turns to concern that the Federal Reserve could put the brakes on the recovering U.S. economy sooner than anticipated.
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Stocks finished mixed Tuesday as investors' optimism turned to concern that the Federal Reserve could put the brakes on the recovering U.S. economy sooner than anticipated.

The Dow Jones Industrial Average rose 46 points, or 0.13%, to 34,575, the S&P 500 slipped 0.05% and the Nasdaq was off by 0.09%.

Boeing  (BA) - Get Report was one of the leaders on the Dow, finishing up 3.1% at $254.73. An analyst at Cowen turned bullish on the Chicago aerospace giant, upgrading the stock to outperform from market perform and raising the price target to $290 from $240.

Coming out of the three-day Memorial Day weekend, Wall Street began a new month near all-time highs. Stocks have got a boost from signs of a solid U.S. economic recovery from the COVID-19 pandemic and a Federal Reserve that has provided extraordinary support.

But U.S. manufacturing expanded at a faster pace in May, renewing worries that the Fed may consider tightening sooner than Wall Street expected. A strong report on the U.S. jobs picture Friday also could increase those concerns.

Stocks finished with gains Friday and the S&P 500 closed out May with its fourth straight month of gains as inflation data failed to dent investors' positive sentiment.

Rotation Back Into Growth and Speculative Names Continues to Grow

The Dow rose 0.9% last week and 1.9% in May. Year to date through May, the blue-chip index rose 12.8%. 

The S&P 500 climbed 1.2% for the week and gained 0.5% in May. The index rose 11.9% so far this year through May.

The Nasdaq added 2.1% for the week and slipped 1.5% for all of May. Year to date, the tech-heavy index tacked on 6.7%.

Oil prices in the U.S. rose more than 2% Tuesday to near $68 a barrel following a Bloomberg report that said OPEC and its allies looked set to increase production in July as expected.

Software company Cloudera  (CLDR) - Get Report reached a deal to be taken private by KKR & Co. KKR and Clayton Dubilier & Rice in an all-cash deal valued at $5.3 billion. 

Cloudera will be purchased by the private-equity firms for $16 a share. The stock finished up 24% at $15.94.