(Reuters) – Gains in technology stocks lifted Wall Street’s three main indexes higher for the second straight session on Tuesday, while investors awaited manufacturing data for fresh signs of domestic demand in the world’s largest economy.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 23, 2019. REUTERS/Brendan McDermid
The ISM’s purchasing managers index (PMI) data, due at 10:00 a.m. ET (1400 GMT), is likely to show the manufacturing sector rebounded to 50.1 in September after contracting for the first time in 3-1/2 years to 49.1 in August.
It will come on the heels of euro zone manufacturing data which contracted at its steepest rate in almost seven years.
“If we look at some of the data out of either Asia Pacific or European zone, the U.S. economic data has certainly been the standout across the board,” said Art Hogan, chief market strategist at National Securities in New York.
Semiconductor stocks Analog Devices (ADI.O) and Microchip Technology (MCHP.O) rose more than 3% after KeyBanc upgraded the chipmakers to “overweight”. Shares of peer Xilinx (XLNX.O) slipped 1.4% after the brokerage lowered its rating to “sector weight”.
Despite a prolonged U.S.-China trade war that has hammered global growth, confidence in the domestic economy is one of the factors that has helped the benchmark S&P 500 .SPX climb more than 19% so far this year.
A crucial jobs report on Friday is expected to shed further light on U.S. economic growth. The Federal Reserve is also looking at these data to determine whether it should cut interest rates again this year.
At 9:47 a.m. ET, the Dow Jones Industrial Average .DJI was up 121.05 points, or 0.45%, at 27,037.88, the S&P 500 .SPX was up 14.85 points, or 0.50%, at 2,991.59. The Nasdaq Composite .IXIC was up 58.92 points, or 0.74%, at 8,058.26.
McDonald’s Corp (MCD.N) dropped 2.4% after JP Morgan said the fast food chain’s third-quarter same-store sales would be softer than it initially thought.
The benchmark 10-year note yield US10YT=RR ticked higher, helping the interest-rate sensitive bank sub-sector .SPXBK rise 0.96%.
Philip Morris International Inc (PM.N) gained 0.4% after reports that Bank of America Merrill Lynch upgraded the cigarette maker’s stock to “buy” from “neutral.”
Shares of online brokerage E*Trade Financial (ETFC.O) tumbled 18.7%, the most on the S&P 500, following rival Charles Schwab Corp’s (SCHW.N) move to remove commissions for online trading of stocks, ETFs and options listed on U.S. or Canadian exchanges. Shares of Charles Schwab dropped 8.8%.
Advancing issues outnumbered decliners by a 2.04-to-1 ratio on the NYSE and a 2.57-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and one new low, while the Nasdaq recorded 23 new highs and 30 new lows.
Reporting by Medha Singh and Arjun Panchadar in Bengaluru; Editing by Arun Koyyur