US STOCKS-Wall St jumps as traders eye M&A and stimulus


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    * Microsoft says looking to buy TikTok's U.S. operations
    * Apple approaches $2 trillion market cap
    * White House, Congress resume talks over relief deal
    * Indexes: Dow +1.01%, S&P 500 +0.91%, Nasdaq +1.58%      

 (Updates to afternoon)
    By Noel Randewich
    Aug 3 (Reuters) - Wall Street rallied on Monday as a rebound
in multibillion-dollar deals, including Microsoft's pursuit of
TikTok's U.S. operations, lifted sentiment, and efforts to
hammer out a coronavirus relief bill resumed.
    Microsoft  MSFT.O  jumped 4.8% after it said it would push
ahead with talks to buy the U.S. operations of Chinese-owned
TikTok. President Donald Trump reversed course earlier on a
planned ban of the short-video app.*:nL4N2F51LN
    ADT  ADT.N  surged 59% on news that Alphabet's  GOOGL.O 
Google was buying a nearly 7% stake in the home security firm
for $450 million in a deal that will allow it to provide service
to customers of its Nest home security devices.*:nL4N2F52P3
    Varian Medical Systems Inc  VAR.N  jumped over 20% after a
$16 billion buyout by Germany's Siemens Healthineers  SHLG.DE ,
while Kansas City Southern  KSU.N  added more than 3% after a
report a group of buyout investors were considering a takeover
bid in a deal of about $20 billion.*:nL8N2F403Z*:nL3N2F25OF
    "The market is revolving around M&A activity possibly
picking up," said Jake Dollarhide, chief executive officer of
Longbow Asset Management in Tulsa, Oklahoma. "It means CEOs are
more confident about the future. Otherwise, why would they lay
out billions of dollars?"
    Apple Inc  AAPL.O  rallied for a second straight session
following stunning quarterly results and announcing a
four-for-one stock split. At its current share price of about
$437, the tech giant is about $140 billion short of hitting $2
trillion in market capitalization.*:nL3N2F1551
    Tech  .SPLRCT  far outpaced gains among the six of 11 major
S&P sectors trading higher.
    Congressional Democrats and Trump administration officials
resumed talks aimed at hammering out a coronavirus relief bill
after missing a vital deadline to extend relief benefits to tens
of millions of jobless Americans.*:nL1N2F50O6
    A rally in tech-related stocks and trillions of dollars in
monetary and fiscal stimulus have lifted the S&P 500 to within
about 3% of February's record high.
    The Labor Department's monthly employment report is due on
Friday, on the heels of last week's weekly jobless claims data
that showed a recovery in the job market appeared to have
stalled in late July.
    At 2:30 pm EDT, the Dow Jones Industrial Average  .DJI  was
up 1.01% at 26,694.48 points, while the S&P 500  .SPX  gained
0.91% to 3,300.93.
    The Nasdaq Composite  .IXIC  added 1.58% to 10,915.10.
    With the U.S. corporate earnings season now past its
half-way mark, a record number of companies have beaten
dramatically lowered estimates, but the second quarter is still
set to be the low point for earnings this year.*:nL1N2F406X
    Drug distributor McKesson Corp  MCK.N  gained 6.6% after
boosting its full-year earnings forecast.*:nASA00ZM9 
    Advancing issues outnumbered declining ones on the NYSE by a
2.03-to-1 ratio; on Nasdaq, a 2.40-to-1 ratio favored advancers.
    The S&P 500 posted 39 new 52-week highs and no new lows; the
Nasdaq Composite recorded 152 new highs and 14 new lows.

S&P 500 stocks so far in 2020 S&P 500 stocks so far in
 (Reporting by Sagarika Jaisinghani and Medha Singh in
Bengaluru; Editing by Anil D'Silva, Sriraj Kalluvila and Tom
 ((; (415) 677 2542; Reuters Messaging:
Twitter: @randewich))

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