US STOCKS-Microsoft, Apple lift Wall St as investors await stimulus

Reuters

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    * Microsoft says looking to buy TikTok's U.S. operations
    * Apple about $30 a share away from hitting $2 trillion
market cap
    * White House, Congress resume talks over relief deal
    * McKesson up after earnings forecast raise
    * Indexes up: Dow 0.84%, S&P 0.74%, Nasdaq 1.37%

 (Updates to early afternoon)
    By Sagarika Jaisinghani and Medha Singh
    Aug 3 (Reuters) - Wall Street's main indexes rose on Monday
as a rebound in multi-billion dollar deals, including
Microsoft's pursuit of TikTok's U.S. operations, lifted
sentiment as efforts to hammer out a coronavirus relief bill
resumed.
    Microsoft  MSFT.O  jumped 4% on saying it would push ahead
with talks to buy the U.S. operations of Chinese-owned TikTok
after President Donald Trump reversed course on a planned ban of
the short-video app.  urn:newsml:reuters.com:*:nL4N2F51LN
    Apple Inc  AAPL.O  gained 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 $132 billion - or around $30 a
share - short of hitting $2 trillion in market capitalization.
 urn:newsml:reuters.com:*:nL3N2F1551
    Tech  .SPLRCT  far outpaced gains among the six of 11 major
S&P sectors trading higher.
    "Everyone realizes that tech is the place you want to be
right now but from market's standpoint, breadth matters," said
Shawn Cruz, manager of trader strategy at TD Ameritrade in
Jersey City, New Jersey.
    "You want to see banks, industrials do well and that's a
pretty good sign of things to come if those sectors are
performing."
    A rally in tech-related stocks and historic stimulus have
lifted the S&P 500 to within 3% of its peak, but faltering
macroeconomic data and a gridlock on more government stimulus
have made investors cautious again.
    Congressional Democrats and Trump administration officials
resumed talks aimed at reaching a relief bill on Monday
afternoon after missing a vital deadline last week to extend
benefits to tens of millions of jobless Americans.  urn:newsml:reuters.com:*:nL1N2F50O6
    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.
    "This Friday, no matter what comes out of the report, people
are going to say 'but last week things got worse.' Everyone
thought we were going to glide past the reopening and that got
repriced last week," Cruz said.
    At 12:51 p.m. ET, the Dow Jones Industrial Average  .DJI 
was up 221.05 points, or 0.84%, at 26,649.37, the S&P 500  .SPX 
was up 24.07 points, or 0.74%, at 3,295.19. The Nasdaq Composite
 .IXIC  was up 147.69 points, or 1.37%, at 10,892.96.
    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.  urn:newsml:reuters.com:*:nL1N2F406X
    Varian Medical Systems Inc  VAR.N  jumped about 22% after a
$16 billion buyout by Germany's Siemens Healthineers  SHLG.DE ,
while Kansas City Southern  KSU.N  added 2.4% on a report that a
group of buyout investors were considering a takeover bid in a
deal of about $20 billion.  urn:newsml:reuters.com:*:nL8N2F403Z urn:newsml:reuters.com:*:nL3N2F25OF
    Drug distributor McKesson Corp  MCK.N  gained 5.6% after
boosting its full-year earnings forecast.  urn:newsml:reuters.com:*:nASA00ZM9 
    Advancing issues outnumbered decliners 1.58-to-1 on the NYSE
and 1.84-to-1 on the Nasdaq.
    The S&P index recorded 33 new 52-week highs and no new low,
while the Nasdaq recorded 118 new highs and 13 new lows.

 (Reporting by Sagarika Jaisinghani and Medha Singh in
Bengaluru; Editing by Uttaresh.V, Anil D'Silva and Sriraj
Kalluvila)
 ((Sagarika.Jaisinghani@thomsonreuters.com; within U.S. +1 646
223 8780; outside U.S. +91 80 6182 2256;))

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