U.S. stocks extended a drop Monday morning after the Institute for Supply Management said U.S. manufacturing activity continued to contract in May, while separate data showed a contraction

in April construction spending. ISM said its manufacturing index came in at 48.5%, down from 48.7% in April and in line with expectations. A figure below 50% signals a contraction in

activity. Meanwhile, the government said April construction spending contracted by 0.4%. Economists had expected growth of 0.2%. The Dow Jones Industrial Average fell 310 points, or 0.7% The

S&P 500 lost 0.5% The Nasdaq Composite was down 0.4%.