US STOCKS-Wall St rises on Microsoft's beat, rate cut euphoria

* Microsoft rises after solid growth in cloud business
* Technology biggest boost to S&P
* Kansas City Southern gains on profit beat
* American Express falls as expenses rise
* Indexes up: Dow 0.28%, S&P 0.27%, Nasdaq 0.37%

(Updates to open)
By Medha Singh
July 19 (Reuters) - U.S. stock indexes advanced on Friday as
solid results from Microsoft lifted technology stocks and added
to an upbeat mood following signs from New York Fed President
John Williams that the central bank would lower interest rates
this month.
Microsoft Corp MSFT.O , America's most valuable company,
gained 2.2% as strength in its cloud business helped it beat
analysts' estimates at the end of a week of mixed corporate
results. The S&P technology sector .SPLRCT gained 0.60%, providing
the biggest boost to the benchmark S&P 500 .SPX index.
"Some optimism is being carried forward from New York Fed
President John Williams' comments and largely
better-than-expected corporate earnings so far, highlighted by
Microsoft," said Art Hogan, chief market strategist at National
Securities in New York.
Second-quarter profits at S&P 500 companies are now
estimated to rise 1%, according to Refinitiv IBES data, in a
reversal from earlier expectations of a small drop.
Williams' remarks that the Fed cannot wait for economic
disaster to unfold and must add stimulus early were behind
Thursday's positive close. Traders raised bets for a larger, half-percentage point cut
in rates at the July 30-31 policy meeting to 41%, from a 23%
chance a week ago, according to CME Group's FedWatch program.
Boeing Co BA.N also provided support to the Dow
Industrials .DJI and S&P 500 .SPX index.
The planemaker disclosed it would take a $4.9 billion
after-tax hit due to estimated disruptions from the grounding of
its 737 MAX, but shares gained 2.1% indicating that investors
had feared worst. At 9:45 a.m. ET, the Dow Jones Industrial Average .DJI was
up 75.33 points, or 0.28%, at 27,298.30, and the S&P 500 .SPX
was up 8.01 points, or 0.27%, at 3,003.12. The Nasdaq Composite
.IXIC was up 30.50 points, or 0.37%, at 8,237.74.
The main indexes have eased off all-time highs hit at the
start of this week as some of the first batches of
second-quarter earnings releases pointed to a slowdown in growth
under the shadow of U.S.-China trade tensions.
Kansas City Southern KSU.N shares rose 3.4% after the
railroad operator posted a better-than-expected quarterly
profit. Its shares helped the Dow transports index .DJT rise
about 1%.
Credit card issuer American Express Co's AXP.N beat profit
estimates but shares slipped about 2.4% as expenses jumped.
Advancing issues outnumbered decliners by a 1.43-to-1 ratio
on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.
The S&P index recorded 34 new 52-week highs and one new low,
while the Nasdaq recorded 37 new highs and 25 new lows.