Stocks advanced slightly on light volume on mixed economic reports. The Federal Reserve Bank of New York said its manufacturing index dropped to negative 5.9 in August, the first negative reading since October. Industrial production rose 0.6% in July, in line with analyst expectations. The National Association of Home Builders' Housing Market Index rose to 37 in August from 35 the prior month. New York Attorney General sent subpoenas to major banks as part of a probe into the manipulation of Libor. Merck and Intel led the blue-chip barometer lower, both falling about 0.8%. JDS Uniphase jumped 8.2%, a day after the co. reported better-than-expected quarterly results. Networking companies also posted gains, getting a boost from remarks by AT&T Chief Financial Officer who reiterated the company’s forecast for capital spending “in the $20 billion range” this year. Cisco Systems closed up 1.1% ahead of its release of fourth-quarter results after the bell. Shares added another 5% after hours after the co. topped analysts’ estimates. Implied volatility inched lower on modest trading volumes.
