CORRECTED-US STOCKS-Wall St rises on strong earnings, chipmakers fall after Intel outlook

Reuters

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 (Corrects to remove reference to three stocks in fourth
paragraph)
    * Social media stocks rally after strong results 
    * AmEx jumps on blowout Q2 profit
    * Intel sales forecast implies rocky second half of 2021 
    * Indexes up: Dow 0.39%, S&P 0.44%, Nasdaq 0.26%

    By Devik Jain and Shreyashi Sanyal
    July 23 (Reuters) - Wall Street's main indexes rose on
Friday, helped by megacap technology stocks and strong earnings
from social media companies, while a weak sales forecast from
Intel hit chipmakers amid increasing supply-chain constraints.
    Twitter Inc  TWTR.N  gained 1.3% after it reported higher
quarterly revenue growth, while Snapchat-owner Snap Inc  SNAP.N 
surged 22.9% on beating estimates for user growth and revenue.
 urn:newsml:reuters.com:*:nL1N2OY2G2 urn:newsml:reuters.com:*:nL1N2OY2H1
    Strong results from the social media firms set a positive
precedent for Facebook Inc  FB.O , which rose 3.0% ahead of its
second-quarter results next week.
    The S&P 500 communication services sector index  .SPLRCL ,
added 1.2% to be the top gainer among the 11 major S&P sectors.
    "Earnings are expected to be much better for the value side
than for growth, but with interest rates being as low as they
are, investors will be sticking to growth because that way the
near-term momentum is on their side," said Sam Stovall, chief
investment strategist at CFRA Research in New York.
    Other major growth names, including Amazon.com  AMZN.O ,
Apple Inc  AAPL.O , and Microsoft Corp  MSFT.O , also climbed
between 0.2% and 0.8%. 
    American Express Co  AXP.N  jumped 3.3% and was the top
boost to the S&P 500 financials sector  .SPSY  after its
second-quarter profit blew past expectations.  urn:newsml:reuters.com:*:nL4N2OZ1PV
    Intel Corp  INTC.O  dropped 5.3%, leading the declines on
the Philadelphia SE Semiconductor index  .SOX , after it gave an
annual sales forecast that implied a weak end of the year.
 urn:newsml:reuters.com:*:nL4N2OY37J
    The second-quarter earnings season barreled ahead, with 120
companies in the S&P 500 having reported numbers so far. Of
those, 88.3% have beaten consensus estimates, according to
Refinitiv data.
    Wall Street investors have shifted between growth stocks and
economically sensitive value shares this week, after concerns
about the spread of the Delta coronavirus variant roiled markets
and sparked a flight to the perceived safety of bond markets on
Monday.
    The major indexes were set for their fourth weekly gain in
five weeks on a boost from strong earnings reports, while the
blue-chip Dow Jones Industrial Average  .DJI  and the benchmark
S&P 500 index  .SPX  inched closer to their record highs hit
last week.
    Meanwhile, data firm IHS Markit said its flash U.S.
Composite PMI Output Index, which tracks the manufacturing and
services sectors, fell to a four-month low of 59.7 from 63.7 in
June.  urn:newsml:reuters.com:*:nZON003H24
    The Federal Reserve's policy meeting next week will be
closely watched for further hints about tapering amid a spike in
COVID-19 cases, though Chair Jerome Powell has repeatedly said
the labor market remains well short of its target.  urn:newsml:reuters.com:*:nL1N2OW0XI
    At 10:07 a.m. ET, the Dow Jones Industrial Average  .DJI 
was up 136.95 points, or 0.39%, at 34,960.30, the S&P 500  .SPX 
was up 19.03 points, or 0.44%, at 4,386.51, and the Nasdaq
Composite  .IXIC  was up 38.40 points, or 0.26%, at 14,723.00.
    Schlumberger NV  SLB.N  added 0.3% after it reported a rise
in its second-quarter profit as oilfield activity rebounded.
 urn:newsml:reuters.com:*:nL4N2OZ1OY
     Advancing issues outnumbered decliners by a 1.21-to-1 ratio
on the NYSE. Declining issues outnumbered advancers for a
1.55-to-1 ratio on the Nasdaq.
    The S&P index recorded 58 new 52-week highs and no new low,
while the Nasdaq recorded 64 new highs and 90 new lows.

 (Reporting by Devik Jain and Shreyashi Sanyal in Bengaluru;
editing by Uttaresh.V and Maju Samuel)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))

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