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Dow, S&P 500 post new closing highs; Apple slips

Stocks closed narrowly mixed on the first trading day of June, but the Dow and S&P 500 squeezed out gains to finish at fresh highs.

In an unusual move, the ISM corrected its May manufacturing data for a second time to 55.4. The index was first corrected to 56 after being initially reported as 53.2 at 10 am ET. Analysts polled by Reuters expected a reading of 55.5.

Read MoreThe ISM trade: 'Downgrading economists to pure morons'

Stocks came off the lows of the day after word of the initial adjustment began to circulate. The market was still higher after the second revision.

"Bottom line, we've seen a nice spring rebound but it still looks like we are just getting back to the pre-winter trend rather than being on the cusp of a new acceleration in growth," according to Peter Boockvar, chief market analyst at The Lindsey Group.

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The Dow Jones Industrial Average ticked up 26.46 points to end at 16,743.63, scoring a sixth record close this year. Caterpillar and United Tech led the gainers.

The S&P 500 edged up 1.40 points to finish at 1,924.97, setting another record close. Meanwhile, the Nasdaq declined 5.42 points, to finish at 4,237.20.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, rose above 11.

Among key S&P sectors, industrials led the gainers, while energy lagged.

Read MoreThe new 'frontier' as emerging markets get a boost from low rates

"Despite the new highs, the market's been in a little bit of a consolidation phase and it's searching for some kind of direction," said Keith Bliss, senior vice president at Cuttone & Co. "But unless we get dramatically poor data point, it's going to be hard to crack this market to the downside."

Read MoreCorrection coming? Why smart people were dead wrong

Apple took the wraps off a new operating system for its Mac computer, called Yosemite. In addition, the company announced the iOS 8 for the iPhone and iPad. (CNBC.com is blogging this event live.) Shares remained in negative territory following the announcement.

Google is reportedly planning to invest more than $1 billion in a series of internet access satellites around the globe, according to the Wall Street Journal. Shares declined.

Mylan said it reached a settlement with Pfizer over sales of a generic version of the blockbuster painkiller Celebrex. Mylan said it would begin selling the drug, celecoxib, at the earliest point it can and not later than December.

Broadcom jumped to lead the S&P 500 gainers after the company said it was looking to sell or wind-down its cellular baseband business.

Zillow slumped after the real estate website operator's stock was cut to "sector perform" from "outperform" at Pacific Crest, which said it sees a less-attractive risk/reward profile and limited upside. RBC Capital also cut its rating on the stock to "sector perform" from "outperform."

Krispy Kreme is slated to report quarterly earnings after the closing bell.

Among other economic reports, construction spending ticked up in April to its best level in nearly five years, but still missed estimates.

Other economic data this week include reports on factory orders and car sales, as well as the widely-watched jobs report on Friday. Investors will also be looking to Europe as Mario Draghi confronts the threat of deflation, preparing to unleash an array of measures to jolt the economy and ignite prices.

Read MoreAll eyes on Draghi: Bond-buying bazooka on the way?

—By CNBC's JeeYeon Park

On tap this week:

TUESDAY: Factory orders, auto sales; Earnings from Dollar General
WEDNESDAY: Mortgage applications, ADP employment report, international trade, productivity & costs, ISM non-mfg index, oil inventories, Beige Book, G7 meeting
THURSDAY: Challenger job-cut report, jobless claims, Fed's Kocherlakota speaks, chain store sales, ECB mtg; Earnings from JM Smuckers, Joy Global, Diamond Foods
FRIDAY: Nonfarm payrolls, consumer credit, Wal-Mart shareholders mtg

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