US STOCKS-S&P 500, Dow gain on factory data, strong oil prices

Reuters

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    * Apple extends losses after lukewarm reception for new
iPhone
    * U.S.-listed Chinese stocks dip on fears of debt crisis
    * S&P 500 rises from over 3-week low 
    * Indexes: Dow up 0.27%, S&P up 0.25%, Nasdaq down 0.06% 

 (Updates to midday)
    By Ambar Warrick
    Sept 15 (Reuters) - The S&P 500 and Dow Jones indexes rose
on Wednesday on mildly positive factory data and higher oil
prices, although concerns over a slowing economic recovery and
higher corporate taxes kept sentiment subdued.
    The energy  .SPNY  sector climbed 3.1% to lead a rise in
economically sensitive sectors as oil prices gained on a
larger-than-expected drawdown in U.S. crude inventories.  O/R  
    That helped the S&P 500  .SPX  rise from a more than
three-week low and the Dow  .DJI  recover from a near two-month
trough hit on Tuesday.
    Industrial stocks  .SPLRCI  were the second-best performers,
rising 0.8% as data showed factory activity in the country
continued to expand in August. 
    But even as activity rose 1% above pre-pandemic levels, the
pace of growth slowed drastically last month due to disruptions
from Hurricane Ida and a resurgence in COVID-19
cases. urn:newsml:reuters.com:*:nL1N2QH133  
    Recent economic readings from across the globe, including
weak Chinese retail sales and slowing growth in U.S. consumer
prices, have suggested that the economic recovery in the second
half of 2021 may not be as stellar as initially thought. 
    "It's just a softening of economic activity, not just in the
U.S. but globally ... we still have the COVID Delta variant
that's causing problems in a lot of areas," said Randy
Frederick, managing director of trading and derivatives for the
Schwab Center for Financial Research.
    "We were at all-time highs just a week-and-a-half ago, the
market tends to be sensitive to any kind of news, any kind of
bad economic data when it's at all-time highs."
    At 11:56 am ET, the Dow Jones Industrial Average rose 92.87
points, or 0.27%, to 34,670.44, the S&P 500 gained 11.10 points,
or 0.25%, to 4,454.15 and the Nasdaq Composite  .IXIC  lost 9.66
points, or 0.06 %, to 15,028.10. 
    Stocks were also jolted this week by reports that the
government was edging closer to hiking corporate taxes, which
could eat into earnings.  
    U.S.-listed Chinese stocks extended recent losses after
Chinese retail sales disappointed, while a growing debt crisis
at China's No.2 property developer, China Evergrande Group
 3333.HK , raised fears of a possible impact on major lenders. 
    "The Asian banks will get hit hard if there's a default, but
then there will be a 10-year recovery process. The market's
getting a hang of it. The way they've managed the news flow
seems quite clever. They haven't let a swathe of bad news at
once," said Keith Temperton, sales trader at Forte Securities.
    Concerns over Evergrande's default have further dented
appetite for Chinese stocks after a series of recent regulatory
moves against major technology firms wiped out billions of
dollars in market value.
    Apple Inc  AAPL.O  fell 0.6% after losing 1% in the previous
session on a somewhat lukewarm response to the unveiling of its
Phone 13 and a new iPad mini.  urn:newsml:reuters.com:*:nL1N2QG1WA
    Among other movers, lending platform GreenSky Inc  GSKY.O 
surged more than 50% after Goldman Sachs Group Inc  GS.N  said
it would buy the firm in an all-stock deal valued at $2.24
billion.  urn:newsml:reuters.com:*:nL4N2QH2XJ
    Goldman Sachs shares fell 1%, lagging their banking peers.
    Advancing issues outnumbered decliners by a 1.7-to-1 ratio
on the NYSE and by about a 1.4-to-1 ratio on the Nasdaq. 
    The S&P 500 posted 2 new 52-week highs and 2 new lows, while
the Nasdaq recorded 61 new highs and 100 new lows.

 (Reporting by Ambar Warrick and Sruthi Shankar in Bengaluru;
Editing by Arun Koyyur, Maju Samuel and Aditya Soni)
 ((Ambar.Warrick@thomsonreuters.com; +91-80-6182-2837; Reuters
Messaging: ambar.warrick.thomsonreuters.com@reuters.net;
Twitter: @AmbarWarrick))

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