4:05pm: US stocks rally before the close
After dipping further into the red during the afternoon, US stocks rallied just before the close to finish the day higher than they started it.
At the close, the Dow was up 0.3% or 84 points at 33,062 points.
The S&P 500 closed 0.6% or 23 points up at 4,155 points, with the Nasdaq faring slightly better, finishing the day up 1.6% or 201 points at 12,536 points.
12:05pm: US stocks dip slightly at midday
US stocks continued to fluctuate between gains and losses at midday as earnings season continues.
At noon, the Dow had slipped into the red, down 160 points or 0.5% to 32,817 points.
The S&P 500 was also down about 0.5%, while the Nasdaq remained flat.
Major movers included Redbox Entertainment Inc, which had spiked 48.5% to $8.88, and Robinhood Markets Inc (NASDAQ:HOOD) which was up 5.4% to $10.33, recovering from losses incurred last week.
Meanwhile, the ISM Manufacturing Index fell to 55.4 in April from 57.1 in March, coming in below the consensus analyst expectation of 57.6.
Pantheon Macroeconomics chief economist Ian Shepherdson said supply-chain pressures overall were broadly stable, but still bad.
"The April ISM details show orders and production softening a bit further after their big declines in March; orders are now at the lowest point since May 2020, at 53.5," Shepherdson said.
But he noted that "manufacturing accounts for only about 12% of the U.S. economy; it can be in recession - as in mid-15-to-mid-16, and mid-18-to late-19 - while the rest of the economy is growing."
9:50am: US stocks jumpy as May trading begins
US stocks were jumping between gains and losses to kick off May trading as investors mull earnings data and look to the upcoming Fed meeting on Wednesday.
Shortly after opening, the Dow was hovering just in the green, up 30 points to 33,008 points.
Meanwhile, the S&P 500 was up 2 points to 4,134 points and the Nasdaq had gained 7 points, sitting at 12,341 points.
6:25am: US stocks set to start the day in the green
US stocks look set to start May on a positive note after major indexes last month posted their worst month since the coronavirus pandemic began, although there are plenty of potential pitfalls coming up this week.
Futures for the Dow Jones Industrial Average were 0.5% higher on Monday, those for the broader S&P 500 rose 0.4%, and contracts for the tech-laden Nasdaq-100 futures added 0.5%.
The Dow declined nearly 5% in April, the worst monthly performance since March 2020, while the S&P 500 fell 8.8%. The Nasdaq Composite fell more than 13% last month, it's worst showing since October 2008, as tech stocks reacted to higher interest rates.
Investors are awaiting the Federal Reserve’s latest policy meeting on Wednesday for more signals on the pace of monetary tightening, with markets anticipating another rate increase to counter the highest inflation in decades. The ongoing war in Ukraine following the Russian invasion in March and a fresh coronavirus outbreak in China are both weighing on global supply chains and threaten to increase inflation even more.
Investors will also be eyeing always key US monthly jobs report due on Friday. Data due on Monday includes April's ISM purchasing managers’ surveys for US manufacturing at 10.00am.
The corporate earnings season is also continuing to flow. Credit-rating company Moody’s is scheduled to post results on Monday morning, followed by Expedia and Clorox after markets close today. Pfizer, KKR, Airbnb, Starbucks and Lyft are scheduled to report Tuesday, and Moderna, Marriott International and Uber on Wednesday. Kellogg and Apollo Global Management are due on Thursday.
The US earnings season has been reasonably strong so far, with over 80% of companies that have reported to date beating analysts’ expectations, according to Refinitiv.
In Asia on Monday, most major benchmarks edged down moderately, although markets in China and Hong Kong were closed for the May Day holiday, as were European markets today.
Oil prices remain under pressure as European Union officials work on a proposal to sanction Russian energy, although some are sceptical it will pass since it requires unanimous support from EU members. OPEC+ alliance members meet later this week to discuss its supply agreement. The Brent crude benchmark fell 2.8% to around $104.19 a barrel.