US STOCKS-Tech stocks, industrials lead Wall Street higher

Reuters

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    * Facebook, Microsoft, Amazon hit record highs
    * CA shares surge on Broadcom's buyout deal
    * Industrials bounce back after Wednesday's slide
    * Steady economic data also bolsters sentiment
    * Indexes up: Dow 0.70 pct, S&P 0.56 pct, Nasdaq 0.85 pct

 (Adds comment, details; Updates prices)
    By Amy Caren Daniel
    July 12 (Reuters) - U.S stocks gained on Thursday, led by
marquee technology stocks hitting record highs and a rebound in
industrial stocks, as optimism of a strong earnings season
offset fears about a U.S-China trade war.
    Facebook  FB.O , Microsoft  MSFT.O  and Amazon  AMZN.O  hit
all-time intraday highs and along with Apple  AAPL.O  and
Alphabet  GOOGL.O  powered the S&P 500 and Nasdaq higher.
    The technology sector  .SPLRCT  rose 1.3 percent, leading
the gainers among the 11 major S&P sectors. Industrials
 .SPLRCI  rose 1 percent.
    CA Inc  CA.O  jumped 18.1 percent, the most on the S&P 500,
after chipmaker Broadcom  AVGO.O  announced a surprise $18.9
billion deal to buy the business software company. Broadcom
slumped 16.8 percent, leading S&P's losers.  urn:newsml:reuters.com:*:nL1N1U71YC
    Boeing  BA.N  and Caterpillar  CAT.N , among the hardest hit
by the recent trade dispute, rose about 1.3 percent helping send
the Dow Jones Industrial Average index higher.
    Industrials led a slide on Wall Street on Wednesday after
the U.S. threatened to impose tariffs on $200 billion worth of
Chinese goods. China said on Thursday the two countries have not
been in touch about restarting talks and while it does not want
a trade war, it would fight if necessary.  urn:newsml:reuters.com:*:nL8N1U84ZT
    Weekly jobless claims hit a two-month low last week, the
Labor Department said, in a sign that labor market conditions
remained robust in early July.  urn:newsml:reuters.com:*:nLNSCIEEGH
    The consumer price index (CPI) barely rose in June, but the
underlying trend continued to point to a steady buildup of
inflation pressure that could keep the Federal Reserve on a path
of gradual interest rate increases.  urn:newsml:reuters.com:*:nLNSCIEEGI
    "The markets are telling us the economy is good and the
earnings are going to be okay, but there is that element of
risk, and that is an elevating trade war," said Peter Cardillo,
chief market economist at Spartan Capital Securities in New
York.
   "If trade fears continue to ease, then investors are going to
be very much in tune to the earnings season and that could
trigger a strong rally."
    The earnings season kicks off in earnest on Friday, starting
with the big Wall Street banks, and overall S&P 500 companies
are expected to post second-quarter profit growth of around 21
percent, according to Thomson Reuters I/B/E/S.
    However, the financial sector  .SPSY  dropped 0.16 percent,
ahead of results from JPMorgan Chase  JPM.N , Wells Fargo
 WFC.N  and Citigroup  C.N .
    At 11:39 a.m. EDT the Dow Jones Industrial Average  .DJI 
was up 172.05 points, or 0.70 percent, at 24,872.50, the S&P 500
 .SPX  was up 15.51 points, or 0.56 percent, at 2,789.53 and the
Nasdaq Composite  .IXIC  was up 65.80 points, or 0.85 percent,
at 7,782.41.
    Netflix  NFLX.O  fell 2.1 percent, the only decliner among
the so-called 'FAANG' stocks, after UBS downgraded the stock on
valuation concerns.
    The brokerage said it does not expect to see "the pronounced
upside to Q2 results vs. prior quarters" when Netflix reports
results on Monday.  urn:newsml:reuters.com:*:nL4N1U84NN
    Delta Air Lines  DAL.N  rose 1.1 percent, and lifted other
airline stocks, after the carrier's quarterly profit topped
estimates on higher average fares.  urn:newsml:reuters.com:*:nL4N1U845D
    Advancing issues outnumbered decliners for a 1.12-to-1 ratio
on the NYSE and a 1.06-to-1 ratio on the Nasdaq.
    The S&P index recorded 31 new 52-week highs and three new
lows, while the Nasdaq recorded 72 new highs and 32 new lows.

 (Reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak
Dasgupta)
 ((Amy.CarenDaniel@thomsonreuters.com ; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 9250 ; Reuters
Messaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net))

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