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Purchasing data help Dow
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May 28, 1999: 10:19 a.m. ET
After tepid opening, stocks jump as data show manufacturing slowdown
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NEW YORK (CNNfn) - U.S. stocks opened mixed Friday, but bounced back quickly after the market received a dose of fresh non-inflationary economic data.
The Chicago Purchasing Management Index, a precursor for the National Purchasing Management Index, fell to 57.9 in May from 63.3 a month earlier. The index, a key indicator of manufacturing activity, suggested a slowdown and helped ease lingering inflation fears among market participants.
Shortly after 10 a.m. the Dow Jones industrial average jumped 54.28 points higher to 10,521.21. On the New York Stock Exchange, advances led declines 1,492 to 794 as trading volume reached 102 million shares.
Market watchers expect most of the trading action to take place in the early hours of the session, as investors gradually head for the exit ahead of a three day holiday weekend.
U.S. bond and currency markets close early Friday and all U.S. financial markets will be closed Monday for the Memorial Day holiday.
The Nasdaq Composite rose 2.35 to 2,421.50 and the S&P 500 index gained 7.89 to 1,289.30.
The bond market also turned around from a lower opening, embarking on a small rally after the Chicago NAPM index release. The bellwether 30-year Treasury bond rose 14/32 of a point in price, for a yield of 5.81 percent.
The dollar eased slightly against the euro but recouped some lost ground against the yen.
Focusing on the bearish news
In the stock market, investors once again focused largely on negative factors, punishing shares of companies whose pending mergers might be threatened or whose market share seemed eroding.
Among the day's big losers, shipbuilder Newport News (NNS) tumbled 5-1/16, or more than 15 percent, to 27-11/16 after the New York Times suggested in an article that the company's merger with defense contractor Litton (LIT) may be in jeopardy because of possible Pentagon objections. Litton's shares gained 2-1/16 to 64-13/16.
Also losing ground, Dow component Eastman Kodak (EK) shed 9/16 to 68-1/4 after the Wall Street Journal reported the maker of film and photographic supplies is losing market share to Japanese rival Fuji as Fuji continues to cut prices ahead of the summer holiday season.
Another Dow member, General Motors (GM), headed higher, as the company prepares to spin off its remaining 80.1 percent stake in Delphi (DPH). GM's shares climbed 2-11/16 to 71-3/16 and Delphi's stock eased 3/16 to 20-5/16. 
-- by staff writer Malina Poshtova Zang
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