US STOCKS-Apple drives Wall Street higher as U.S. delays some tariffs

Reuters

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    * Tech leads rally among major S&P sectors
    * Only the real estate sector trades lower
    * Treasury yields tick higher, lifts bank stocks 
    * Indexes up: Dow 1.61%, S&P 1.68%, Nasdaq 2.00%

 (Updates prices to early afternoon)
    By Amy Caren Daniel and Arjun Panchadar
    Aug 13 (Reuters) - U.S. stocks surged more than 1.5% on
Tuesday after the Trump administration said it would delay 10%
tariffs on some Chinese products, including laptops and cell
phones, driving a 4% rally in shares of iPhone maker Apple Inc.
    The administration also excluded video game consoles and
certain items of footwear and clothing from the 10% tariff,
scheduled to start next month, an abrupt pullback from its
hardline stance on trade.  urn:newsml:reuters.com:*:nL2N2590F9
    It eased the fears of a recession triggered by the
protracted trade war that dominated Wall Street this year and
spurred a bout of volatility after President Donald Trump
announced a new round of tariffs in August. 
    "The delay in the next round of tariffs is a positive for
the tech sector and it is addressing any potential impact on the
consumer as we head into year-end whether it's back to school or
holiday shopping," said Mike Loewengart, vice-president of
investment strategy at E*Trade Financial in New York.
    "It's tough to say what the timeline of a trade deal is. All
indications are that China is gearing up for a protracted
dispute while expectations in the U.S. are for a much quicker
resolution."
    A 4.1% jump in shares of Apple  AAPL.O , which makes iPhones
and MacBooks in China, along with a rise in chip stocks pushed
the technology sector 2.38% higher. The Philadelphia chip index
 .SOX  rose 3.04%. 
    Industrial bellwethers 3M Co  MMM.N  and Caterpillar Inc
 CAT.N , traditionally among the most sensitive to trade
concerns and China, jumped about 3% each, while the S&P 500
retailing index  .SPXRT  gained 2%.
    Wall Street's main indexes opened lower, adding to a global
slide in stocks due to geopolitical concerns, with a U.S. Labor
Department report showing that the core consumer price index
rose 2.2% in the 12 months through July.  urn:newsml:reuters.com:*:nLNSDJEF8P
    For some analysts, the data spoke against the U.S. Federal
Reserve delivering aggressive cuts in interest rates,
expectations of which have been an important pillar propping up
sentiment since June. 
    Financial markets have fully priced in a single
quarter-point move at the U.S. central bank's September meeting
and are still giving good odds on two more cuts this year.
 MMT/ 
    At 12:14 p.m. ET, the Dow Jones Industrial Average  .DJI 
was up 417.74 points, or 1.61%, at 26,315.45, and the S&P 500
 .SPX  was up 48.44 points, or 1.68%, at 2,931.53. The Nasdaq
Composite  .IXIC  was up 157.63 points, or 2.00%, at 8,021.04.
    The trade-fueled optimism also lifted U.S. Treasury yields,
and helped the interest-rate sensitive banking index  .SPXBK 
rise 1.78% and the broader financial sector  .SPSY  gain 1.72%. 
    Advancing issues outnumbered decliners by a 2.93-to-1 ratio
on the NYSE and by a 2.43-to-1 ratio on the Nasdaq.
    The S&P index recorded 23 new 52-week highs and 18 new lows,
while the Nasdaq recorded 50 new highs and 100 new lows.

 (Reporting by Amy Caren Daniel and Arjun Panchadar in
Bengaluru; Editing by Patrick Graham and Sriraj Kalluvila)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 9250 ; Reuters
Messaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net))

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