US STOCKS-Disney's wonderful world helps lift Wall St

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* U.S. services sector activity hits 16-month high in July
* Biggest daily pct gain for Disney since late March
* Energy stocks gain as oil prices jump
* Dow up 1.2%, S&P 500 up 0.66%, Nasdaq up 0.55%

(New throughout, updates prices, market activity and comments;
new byline, adds NEW YORK dateline)
By Chuck Mikolajczak
NEW YORK, Aug 5 (Reuters) - U.S. stocks climbed on Wednesday
in the wake of a surprise quarterly profit from Disney and as
investors hailed signs that a deal was near for a U.S.
coronavirus fiscal aid package.
Walt Disney Co's DIS.N shares jumped 9.06%, among the
biggest boosts to the S&P 500 and Dow, and was on track for its
biggest daily percentage gain since March 24 as revenue declines
for its parks and media networks were not as bad as feared.
"What is helping not just Disney but the markets in general
is everyone is completely buying into the Disney move to
streaming but then if you do look at the theme parks, the data
for the U.S. at large has gotten much more positive lately where
we are at least getting initial indications we are sort of over
that hump," said Shawn Cruz, senior manager of trader strategy
at TD Ameritrade in Jersey City, New Jersey.
The Dow Jones Industrial Average .DJI rose 321.61 points,
or 1.2%, to 27,150.08, the S&P 500 .SPX gained 21.96 points,
or 0.66%, to 3,328.47 and the Nasdaq Composite .IXIC added
59.92 points, or 0.55%, to 11,001.09.
Payments processor Square Inc SQ.N surged 8.50% after
reporting a 64% rise in second-quarter revenue, as consumers
increased online buying and used its peer-to-peer Cash App
platform during the pandemic. As quarterly results have come in better-than-feared and
heavyweight technology and technology-related companies have
surged, a heavy dose of fiscal and monetary stimulus have helped
fuel a rally in equities to bring the S&P 500 less than 2% from
its closing record on Feb. 19.
With 384 companies in the S&P having reported earnings
through Wednesday morning, results are coming in 23.5% above
expectations, in aggregate, according to Refinitiv data, the
highest on record back to 1994.
Economic data painted a mixed picture, as U.S. services
industry activity gained momentum in July, according to an ISM
survey, with new orders jumping to a record high. However,
hiring declined, supporting views that a recovery in the labor
market was faltering.
Earlier, the ADP National Employment Report, which can be an
inconsistent precursor to the government payrolls report set for
Friday, showed U.S. private employers hired far fewer workers
than expected last month. U.S. Congressional Democrats and White House officials were
set to resume negotiations on coronavirus relief legislation on
Wednesday, with administration officials aiming for an agreement
by Friday. Financials .SPSY , industrials .SPLRCI and materials
.SPLRCM , that track economic growth, outperformed among the
major S&P sectors.
Teladoc Health Inc TDOC.N fell 17.30% after agreeing to
buy chronic care provider Livongo Health Inc LVGO.O in a deal
valuing the company at $18.5 billion, betting on a boom in
online care and consultations spurred by the coronavirus crisis.
Livongo shares fell 10.23%. Electric truckmaker Nikola Corp NKLA.O slumped 8.16% after
it reported a bigger quarterly loss in its first results as a
listed entity. Advancing issues outnumbered declining ones on the NYSE by a
2.27-to-1 ratio; on Nasdaq, a 1.93-to-1 ratio favored advancers.
The S&P 500 posted 48 new 52-week highs and no new lows; the
Nasdaq Composite recorded 202 new highs and 9 new lows.