CORRECTED-US STOCKS-Earnings, Microsoft boost Wall St as investors await stimulus

(Corrects Stephanie Link's title and location in graph seven to
chief investment strategist and portfolio manager in Chicago
from portfolio manager in New Jersey.)
* Microsoft says looking to buy TikTok's U.S. operations
* Investors hopeful as lawmakers gridlocked over relief deal
* McKesson, Tyson Foods rise on robust earnings updates
* Indexes up: Dow 0.86%, S&P 0.73%, Nasdaq 1.09%

By Sagarika Jaisinghani and Medha Singh
Aug 3 (Reuters) - Wall Street's main indexes rose on Monday
as Microsoft's pursuit of TikTok's U.S. operations and a clutch
of upbeat quarterly earnings reports lifted sentiment in the
absence of a fiscal coronavirus relief deal.
Microsoft MSFT.O jumped 3.7% as it said it would push
ahead with talks to acquire the U.S. operations of Chinese-owned
TikTok after President Donald Trump reversed course on a planned
ban of the short-video app. Tech .SPLRCT and healthcare .SPXHC led gains among the
11 S&P 500 sectors.
A rally in tech-related stocks and historic stimulus have
lifted the S&P 500 to within 4% of its peak, but faltering
macroeconomic data and a gridlock on more government stimulus
have made investors cautious again.
After an extra $600-per-week in jobless benefits expired
last week, Congressional Democrats and Trump administration
officials faced increasing pressure to come to an agreement on
new legislation. White House adviser Peter Navarro said the Trump
administration wanted an enhanced employment package passed in
the next couple of days. "Because we have an uneven economy, Congress has to do
something," said Stephanie Link, chief investment strategist and
portfolio manager at Hightower Advisors in Chicago.
"There are pocket of strengths and obviously the job market
seems to be under pressure. I just hope they don't wait too
long."
All eyes this week will be on the Labor Department's
employment report on Friday that is expected to show far fewer
jobs added in July after a record surge in June. On Monday, ISM's survey of the manufacturing sector showed a
pickup in July activity, mirroring upbeat factory activity data
from Europe and China. "While most agree that the bottom in economic activity is
behind us ... the way forward is likely to be bumpy as several
U.S. states re-impose lockdown measures," said Hussein Sayed,
market strategist at FXTM.
"This probably won't show up in the data until the release
of the August figures."
Wall Street's fear gauge .VIX has declined in the past few
weeks to hover near the lows of coronavirus-fueled volatility
since late February.
At 10:14 a.m. ET, the Dow Jones Industrial Average .DJI
was up 227.69 points, or 0.86%, at 26,656.01, the S&P 500 .SPX
was up 23.93 points, or 0.73%, at 3,295.05, and the Nasdaq
Composite .IXIC was up 117.01 points, or 1.09%, at 10,862.28.
With the U.S. corporate earnings season now past its
half-way mark, a record number of companies have beaten
dramatically lowered forecasts, but the second quarter is still
set to be the low point for earnings this year. Drug distributor McKesson Corp MCK.N gained 5% after
boosting its full-year earnings forecast, while Tyson Foods Inc
TSN.N rose 2.2% on topping quarterly profit estimates.
Clorox Co CLX.N slipped 2.0% even as it beat quarterly
sales and profit estimates. After a tech-heavy week of earnings, investors are gearing
up for reports from Walt Disney Co DIS.N , T-Mobile US
TMUS.O , Activision ATVI.O and American International Group
AIG.N .
Advancing issues outnumbered decliners 1.64-to-1 on the NYSE
and 1.89-to-1 on the Nasdaq.
The S&P index recorded 31 new 52-week highs and no new low,
while the Nasdaq recorded 106 new highs and 10 new lows.