NEW YORK (TheStreet) -- Stocks were slightly lower on the final trading day of May as revised figures showed the economy contracted in the first quarter.
The S&P 500 fell 0.22%, the Dow Jones Industrial Average slipped 0.31%, and the Nasdaq declined 0.26%.
First-quarter gross domestic product, originally seen up 0.2%, was revised down to negative 0.7% in a second estimate. The contraction was slightly narrower than economists had expected, though marked a stark reminder of how bad economic growth truly was at the start of the year.
The value of inventories increased by $95 billion, down from a previously estimated increase of $110.3 billion. Exports fell 7.6%, while imports were revised up to 5.6% from 1.8%, leading to a larger trade deficit which reduced GDP.
Corporate profits fell $125.5 billion in the first quarter after a $30.4 billion decline in the fourth quarter. Adjusted pretax corporate profits fell 5.9%, its biggest decline since 2008.
Economists expect the economy to bounce back in the latter half of the year, and second-quarter data including monthly housing figures support this. Second-quarter GDP is expected to rise 3%.
"Second estimates of GDP are generally "old news" and today's report falls along those lines," said BTIG Research chief strategist Dan Greenhaus. "The (Federal Reserve), market participants and just about everyone believes first-quarter issues were transitory in nature and as such, a revision into negative territory is unlikely to affect the broader debate."
Chicago PMI fell to 46.2 in May from 52.3 in April, the lowest reading since February. Economists had expected the measure to hover at 53.1 in May after new orders recorded their largest monthly swing in more than 30 years in April.