NEW YORK — Stocks closed mixed Monday as traders waited for this week’s election results and more details about the Federal Reserve’s plan to stimulate the economy.
Stocks rose early in the day following reports of unexpected growth in the manufacturing industry in the U.S. and China last month. Manufacturing expanded at its fastest pace in five months, according to the Institute for Supply Management.
The group said its industry index rose to 56.9 in October from 54.4 in September. Any number above 50 indicates growth.
The Dow Jones industrial average at one point was up 125 points, led by manufacturers Caterpillar Inc., United Technologies Corp. and General Electric Co.
But stocks were unable to hold on to their gains ahead of the election and the two-day Fed meeting that starts today. The Dow fell steadily throughout the day, briefly turning lower before a late surge gave it a modest advance.
Investors said they wouldn’t be surprised to see a sell-off after the election and Fed meeting, given the market’s steady climb since September amid a surge of market optimism.
“The market’s been rallying almost straight up for a long, long time,” said Hank Camp, founder of HL Camp & Co., who predicted the market would take a turn down next week. “It’s way overdone.”
The Dow rose 6.13, or 0.1 percent, to finish at 11,124.62. The Standard & Poor’s 500 index rose 1.12, or 0.1 percent, to 1,184.38, while the technology-focused Nasdaq composite index dropped 2.57, or 0.1 percent, to 2,504.84.
In one sign of the mixed day in the stock market, half the industries that make up the S&P 500 fell, while the other half rose. Intel Corp. rose 2.5 percent to lead the 30 companies in the Dow, while Kraft Foods Inc. was the index’s laggard with a 1.5 percent decline.
Investors have been assuming the Fed will launch a new program of buying Treasury bonds to help stimulate the economy.
Only in the past few days has the market rally trailed off amid questions about exactly how much the Fed will spend to buy bonds. The Dow climbed 3.1 percent in October, including a 0.1 percent drop last week.
MarketWatch contributed to this report.
