US STOCKS-Wall St rises as tech stocks bounce back


Reuters

* Fed's Dudley says tight labor market should push inflation
up
    * Retail stocks give up premarket gains to trade lower
    * Amazon hit all-time high
    * Indexes up: Dow 0.50 pct, S&P 0.65 pct, Nasdaq 1.17 pct

 (Adds details, changes comment, updates prices)
    By Tanya AgrawalJune 19 (Reuters) - U.S. stocks were higher in late morning
trading on Monday, with the S&P 500 and Dow Jones Industrial
Average hitting yet another record high, as technology stocks
rebounded after recent losses.
    The S&P technology sector <.SPLRCT> is coming off its second
straight weekly decline, triggered by fears of stretched
valuations and investors moving money to other sectors. Tech
stocks have led the S&P 500's rally this year.
    Leading the recovery, Apple <AAPL.O> rose 2.6 percent,
providing the biggest boost to the three major sectors.
Microsoft <MSFT.O> and Alphabet <GOOGL.O> were also up.
    The tech sector's 1.37 percent rise led the gainers on the
S&P 500, putting it on track for its biggest one-day percentage
rise since March.
    "Some of it is folks taking a second-look at names that may
have been unduly punished in the rotation out of tech that
started about 10 days ago," said David Lefkowitz, senior equity
strategist at UBS Wealth Management Americas in New York.
    "There has been no change in the fundamentals for the tech
sector. Earnings growth, earnings revisions and forward looking
indicators remain healthy."
    At 11:08 a.m. ET (1508 GMT), the Dow Jones Industrial
Average <.DJI> was up 107.62 points, or 0.5 percent, at
21,491.9, the S&P 500 <.SPX> was up 15.92 points, or 0.65
percent, at 2,449.07.
    The Nasdaq Composite <.IXIC> was up 72.12 points, or 1.17
percent, at 6,223.88.
    Consumer staples stocks, which were battered on Friday after
Amazon.com's <AMZN.O> $13.7 billion deal to buy upscale grocer
Whole Foods <WFM.N>, added to their losses. [nL3N1JD3Z4]
    The deal by Amazon, a proven retail disruptor, marked a
major step by the internet retailer into the brick-and-mortar
retail sector. Amazon rose as much as 2.9 percent to an all-time
high of $1017.
    Wal-Mart <WMT.N>, Target <TGT.N> and Costco <COST.O>
reversed premarket gains to trade lower.
    New York Fed President William Dudley, a close ally of Fed
Chair Janet Yellen, said U.S. inflation was a bit low but should
rise alongside wages as the labor market continues to improve,
allowing the Federal Reserve to continue gradually tightening
U.S. monetary policy. [nN9N1GG012]
    Yellen's confidence as her team raised interest rates for
the third time in six months last week surprised investors who
had expected more caution about the economy following a set of
weak U.S. economic data.
    Advancing issues outnumbered decliners on the NYSE by 1,803
to 964. On the Nasdaq, 1,793 issues rose and 906 fell.
    The S&P 500 index showed 49 new 52-week highs and 10 new
lows, while the Nasdaq recorded 99 new highs and 87 new lows.

 (Reporting by Tanya Agrawal; Additional reporting by Chuck
Mikolajczak; Editing by Saumyadeb Chakrabarty)
 ((tanya.agrawal@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 1130; Reuters Messaging:
tanya.agrawal.thomsonreuters.com@reuters.net))

Keywords: USA STOCKS/ (UPDATE 3)



This article appears in: World Markets , US Markets , Stocks
Referenced Symbols: AAPL , AMZN , COST , DJI , GOOGL


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