US STOCKS-Upbeat earnings from Coca-Cola, United Tech lift Wall Street

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* Coca-Cola gains on profit beat, forecast raise
* United Tech gains on quarterly profit beat
* Trump, U.S. Congress leaders reach deal on debt limit
* Indexes up: Dow 0.20%, S&P 0.25%, Nasdaq 0.03%

(Updates to afternoon)
By Amy Caren Daniel
July 23 (Reuters) - U.S. stocks rose on Tuesday, boosted by
upbeat earnings and forecasts from Coca-Cola and United
Technologies, while a two-year debt ceiling and budget deal
between President Donald Trump and Congress buoyed sentiment.
The U.S. corporate earnings season is off to a strong start,
with nearly 80% of the 104 S&P 500 companies topping earnings
expectations in the second quarter.
United Technologies Corp UTX.N gained 0.3%, after raising
its full-year profit and sales outlook. Fellow Dow component Coca-Cola Co KO.N shares rose as much
as 5.8%, to hit a record high, after the fizzy drink maker beat
quarterly earnings expectations and raised its full-year organic
revenue forecast. "Coca-Cola posting very robust results is very encouraging
and raises the prospects of stocks being able to perform in a
changing environment," said Mike Loewengart, vice-president of
investment strategy at E*Trade Financial in New York.
"The reaching of a debt ceiling agreement is positive news
for all sectors at large, because it's one additional question
that gets removed from the outlook for growth and equities in
general."
The deal will help avert a feared government default later
this year, but add to rising budget deficits. The International Monetary Fund lowered its forecast for
global growth this year and next, warning that more U.S.-China
tariffs, auto tariffs or a disorderly Brexit could slow growth
further. Hopes that the Federal Reserve will cut rates at its
policy-setting meeting next week to counter a slowing global
economy have helped Wall Street's main indexes scale new record
levels and put the S&P 500 just about 1% shy of its all-time
high.
The European Central Bank (ECB) is expected to signal easier
monetary policy when it meets on Thursday.
At 12:34 p.m. ET, the Dow Jones Industrial Average .DJI
was up 55.41 points, or 0.20%, at 27,227.31, the S&P 500 .SPX
was up 7.51 points, or 0.25%, at 2,992.54. The Nasdaq Composite
.IXIC was up 2.19 points, or 0.03%, at 8,206.33.
Overall profits of S&P 500 companies are now expected to
rise about 1% in the second quarter, according to Refinitiv IBES
data, improving from a small decline estimated previously.
The financial sector .SPSY rose 0.92%, and gave the
biggest boost to markets, while the banking index .SPXBK
rallied 1.66%.
The interest rate sensitive stocks likely got a boost from
rising yields on the benchmark 10-year notes US10YT=RR .
Travelers Cos Inc TRV.N fell 2.3% after the insurer's
second-quarter profit missed estimates, as weather-related
losses led to an 18% drop in underwriting gain. Hasbro Inc HAS.O jumped 8.8% and was the biggest gainer
among S&P 500 companies, after the toymaker reported
better-than-expected quarterly revenue. Advancing issues outnumbered decliners by a 1.44-to-1 ratio
on the NYSE and by a 1.10-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and three new
lows, while the Nasdaq recorded 37 new highs and 97 new lows.