US STOCKS-Wall St little changed as energy shares hit

* Construction spending posts largest gain in nearly 10 yrs

* Energy shares drag as oil spill continues unchecked

* Asian manufacturing growth slows in May

* Dow up 0.3 pct, S&P off 0.3 pct, Nasdaq off 0.04 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates midafternoon, changes byline)

By Leah Schnurr

NEW YORK, June 1 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) were little
changed on Tuesday after data showed manufacturing expanded for
a tenth straight month, but worries of wider fallout from the
oil spill in the Gulf of Mexico kept a lid on gains.

In addition to the stronger-than-expected manufacturing
data for May, construction spending recorded its largest gain
in nearly 10 years in April, government data showed. For
details, see [ID:nN01112488]

But the energy sector dragged on the market, with the S&P
Energy index (.GSPE: ) down more than 2 percent after BP Plc
(BP.L: ) (BP.N: ) failed in its latest attempt to stem the Gulf of
Mexico oil spill. [ID:nN01262229]

The positive economic data was also tempered by concerns
that global economic growth will be hurt by the euro zone’s
debt crisis, said Alan Lancz, president of Alan B. Lancz &
Associates Inc in Toledo, Ohio. Indeed, data showed a more
sluggish pace in euro zone manufacturing, while the rate of
China’s factory output eased and weighed on U.S. stocks (Read more about the stock market today. ) in
morning trade. [ID:nN01231825]

“The U.S economy is continuing to grow and prospects look
bright. It’s just investors are worried about the influence
Europe will have on both Asia and our economy as the contagion
progresses,” said Lancz.

The Dow Jones industrial average (.DJI: ) added 25.92 points,
or 0.26 percent, to 10,162.55. The Standard & Poor’s 500 Index
(.SPX: ) eased 3.01 points, or 0.28 percent, to 1,086.40. The
Nasdaq Composite Index (.IXIC: ) was off 0.93 points, or 0.04
percent, at 2,256.11.

Among energy stocks, U.S.-listed shares of BP tumbled 13
percent to $37.38. BP will start a new and risky attempt to
place a cap over the leak to funnel oil to the surface.
[ID:nN01104302]

Halliburton Co (HAL.N: ) slumped 12.6 percent to $21.71 after
Goldman Sachs removed the oilfield services company from its
“conviction buy list,” citing short-term concerns related to
the oil spill and the moratorium on deep-water drilling.
[ID:nSGE6500H3]

Investors are worried about a wider impact on the sector if
drilling becomes more regulated in light of the spill, said
Lancz.

Tech shares were among the biggest gainers with Apple Inc (Read more about Apple stock future.)
(AAPL.O: ) rising 2.9 percent to $264.35 as a successful
international launch of its iPad prompted analysts to raise
earnings and sales estimates. [ID:nN01117655]

In merger news, ev3 Inc (EVVV.O: ) jumped 17.5 percent to
$22.23 after Covidien Plc (COV.N: ) agreed to buy the maker of
stents and other vascular devices for $2.6 billion. Covidien
shares slipped 1.4 percent to $41.78. [ID:nN0193836]

On the New York Stock Exchange, decliners outpaced
advancers by almost 2 to 1.

Stock Market Report

(Editing by Kenneth Barry)

US STOCKS-Wall St little changed as energy shares hit