Empire State Manufacturing Declines (CAT, AA)

New York manufacturing activity showed a surprising decline in May. The New York Fed's "Empire State" general business conditions index fell to 19.11 in May from 31.86 in April. Analysts were looking for a reading of 30.00. Employment picked up for a fifth consecutive month, reaching its highest level since 2004. The number of employees rose to 22.37 from 20.25 in April. The new orders index fell to 14.30 from 29.49 in April. Strong manufacturing activity is seen as a positive for industrial and materials companies such as Caterpillar NYSE: CAT) and Alcoa AA.