US STOCKS-S&P, Nasdaq higher on vaccine hopes, improving economic data

* Early positive results for Pfizer, BioNTech vaccine
candidate
* U.S. marks record single-day spike in virus cases
* FedEx jumps on quarterly profit, revenue beat
* Indexes: Dow off 0.08%, S&P up 0.27%, Nasdaq up 0.56%

(Adds comments, updates prices)
By Pawel Goraj and Devik Jain
July 1 (Reuters) - The S&P 500 and Nasdaq rose on Wednesday
as rising hopes of a COVID-19 vaccine offset fears of another
round of lockdowns following a record surge in coronavirus cases
in the United States.
A COVID-19 vaccine developed by Pfizer Inc PFE.N and
German biotech firm BioNTech BNTX.O showed promise and was
found to be well tolerated in early-stage human trial, the
companies said. Pfizer's shares rose 4.8% on the news, one of the biggest
boost to the S&P 500 index, while BioNTech gained 3%, helping
improve the mood on Wall Street after the United States
registered 47,000 new coronavirus cases on Tuesday, the biggest
one-day spike since the start of the pandemic. Updates on the progress in various COVID-19 vaccine programs
are being closely watched by investors, and have been partly
responsible for Wall Street's recent rally. The S&P 500 .SPX
closed its best quarter since 1998 on Tuesday.
The market in general has reacted positively to these bits
of news as they are all tied to the COVID situation, said Andre
Bakhos, managing director at New Vines Capital LLC in
Bernardsville, New Jersey. "The COVID-19 is the linchpin to the
market right now."
The S&P 500 on Tuesday secured its biggest quarterly
percentage gain in more than two decades fueled by unprecedented
levels of fiscal and monetary stimulus.
Investors have also focused on signs of an economic recovery
with the easing of coronavirus-induced lockdowns. Data on
Wednesday showed a slump in global manufacturing was easing in
June, with U.S. figures hitting their highest level in more than
a year. The Institute for Supply Management (ISM) said its index of
national factory activity jumped to a reading of 52.6 last month
from 43.1 in May, ending three straight months of contraction,
or readings below 50.
On Thursday, all eyes will be on the Labor Department's
nonfarm payrolls report.
"The manufacturing number adds a boost to investor
confidence. And now the market is positioning itself in
anticipation for tomorrow's numbers," Bakhos added.
The ADP National Employment Report on Wednesday showed U.S.
private payrolls increased by 2.369 million jobs, but still less
than expected in June. At 11:43 a.m. ET the Dow Jones Industrial Average .DJI was
down 19.88 points, or 0.08%, at 25,793.00, the S&P 500 .SPX
was up 8.47 points, or 0.27%, at 3,108.76 and the Nasdaq
Composite .IXIC was up 56.63 points, or 0.56%, at 10,115.39.
Battered cruise line operators Norwegian Cruise Line
Holdings Inc NCLH.N , Royal Caribbean Cruises Ltd RCL.N and
Carnival Corp CCL.N rose between 3.6% and 6.0%.
Drugmaker Amgen Inc AMGN.O rose 5% after a federal appeals
court upheld two patents for the drugmaker's multibillion-dollar
rheumatoid arthritis drug Enbrel. FedEx Corp FDX.N jumped 14.3% after posting
better-than-expected quarterly profit and revenue, helped by a
surge in pandemic-fueled home deliveries. Declining issues nearly matched advancers on the NYSE and
outnumbered them 1.46-to-1 on the Nasdaq.
The S&P index recorded 13 new 52-week highs and no new low,
while the Nasdaq recorded 64 new highs and eight new lows.