NEW YORK (TheStreet) -- Stocks erased an earlier rally by mid-morning Monday, dipping into the red as investors digested a range of data from the ISM Manufacturing Index to U.S. personal income.
The S&P 500 was down 0.15%, the Dow Jones Industrial Average fell 0.09%, and the Nasdaq slid 0.33%.
The ISM Manufacturing Index increased to 52.8 in May from 51.5 in April, above estimates of 51.8. That marked its highest level since February. Separately, construction spending increased 2.2% compared to an expected 0.7% gain.
"This was a very strong ISM manufacturing sector report, and it comes at a time when doubts about the rebound in economic growth momentum are beginning to surface," said Millan Mulraine, U.S. strategist at TD Securities. "For the [Federal Reserve], this report should do little to change the dynamics at the next meeting later this month, and we continue to see September as the earliest possible time for the Fed to get the necessary confirmation in the recovery to justify raising rates."
Boston Fed President Eric Rosengren isn't so confident in a rate hike sooner than later. Sluggish growth since winter means the conditions for a rate hike have not been met, he said in a speech on Monday. Rosengren is a non-voting central bank member this year.
"The data were not just weak during the worst of winter; they were also weak before the storms and have been weaker than expected ever since," Rosengren told a business group in Hartford, Conn. "This, in my view, makes a compelling argument for continued patience in monetary policy."