US markets closed mostly flat despite good economic data

The US markets closed mostly flat on Monday, with the S&P 500 and Dow Jones Industrial Average pausing after six straight days of modest gains. Investors have also been watching developments in Iraq, where government forces regained control of border crossings into Syria and Jordan. On the economy front, the Markit Economics flash manufacturing purchasing managers index for the US edged higher to a 57.5 reading in June from 56.4 in May. The index, similar in design to the Institute for Supply Management manufacturing index, is at its highest level since May 2010. Output picked up for the third straight month and orders and employment also increased. The flash index is based on 85% to 90% of typical monthly responses. Economic activity accelerated in May, according to the Chicago Fed national activity index released. The index rose to 0.21 in May from negative 0.15 in April, where a reading of zero is equal to trend growth. The index is a weighted average of 85 indicators of national economic activity. The three-month average slowed to 0.18 in May from 0.31 in April.

Separately, existing-home sales in May hit the fastest pace in seven months, thanks to a strengthening labor market, expanding inventories and falling mortgage rates. Rising for a second month, sales of existing homes grew 4.9% in May to a seasonally adjusted annual rate of 4.89 million.

The Dow Jones Industrial Average lost 9.82 points or 0.06 percent to 16,937.26, the S&P 500 inched lower by 0.26 points or 0.01 percent at 1,962.61 while, the Nasdaq gained 0.64 points or 0.01 percent to 4,368.68.

Indian ADRs closed mostly in green on Monday; ICICI Bank was up by 0.93%, HDFC Bank was up 0.68% and Dr. Reddy’s Lab was up 0.30%. On the other hand, Infosys declined by 1.14% and Wipro was down by 0.23%.