Stocks Ended Higher in Late Rebound

U.S. stocks rallied on Monday, bouncing back from weekly losses, as investors gauged the impact of disappointing factory data on potential quantitative-easing moves by the Federal Reserve. The Dow Jones Industrial Average climbed
138.46 points, or 0.92%, at 15,254.03. The S&P 500 index rose 9.68 points, or 0.59%, to 1,640.42. The Nasdaq Composite rose 9.46 points, or 0.27%, to 3,465.37.

A measure of U.S. manufacturing fell in May to its lowest level since June 2009 as slumping overseas economies and weak business spending reduced new orders and production. The Institute for Supply Management said Monday that its
index of manufacturing activity fell to 49 last month from 50.7 in April. That’s the lowest level in nearly four years and the first time the index has dipped below 50 since November. A reading under 50 indicates contraction.

Zynga Inc. (ZNGA) announced on Monday its most dramatic cost-cutting measure to date, with a plan to slash nearly one-fifth of its work force. The cut of roughly 520 jobs is expected to slightly worsen Zynga’s projected second-
quarter results, with the company forecasting a net loss of between $39 million and $28.5 million.

ululemon Athletica Inc ‘s black “Luon” pants are back on store shelves, the Canadian retailer said on Monday, following a highly-publicized recall in March after the fabric was deemed too transparent. The company warned in March that it could lose up to $40 million in profit this fiscal year after it pulled its snug-fitting black workout pants made with its signature Luon fabric from stores due to an “unacceptable level of sheerness.”

Spending on U.S. construction projects rose 0.4 percent in April after a revised 0.8 percent decline in March, the Commerce Department said Monday. Construction activity has been volatile in recent months.