Shares of manufacturing and transportation companies were more or less flat after strong factory data from one region.
The Federal Reserve Bank of Dallas said its production index, a key measure of manufacturing conditions in the state, rose eight points to 23.3, its highest level since April 2014. Most strategists anticipate an acceleration in economic growth accompanied by gradually rising interest rates.
Continue Reading Below
"This set-up suggests that traditional cyclicals and high beta stocks and sectors will have another leg of relative performance in the US," said analysts at brokerage Morgan Stanley, in a note to clients. "We think this favors financials, capital-goods, transports, materials and even energy, which typically do well when economic growth is accelerating."
Bob Doll, chief investment strategist at money manager Nuveen Investments, said in a note to clients that "the minutes from April's meeting indicate that Fed officials believe the economic soft patch in the first quarter will prove to be temporary, indicating that the central bank is on track to raise rates in June."
Rob Curran, email@example.com
(END) Dow Jones Newswires
May 30, 2017 17:30 ET (21:30 GMT)