CORRECTED-US STOCKS-Microsoft, Apple lift 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
* Apple about $30 a share away from hitting $2 trillion
market cap
* Investors hopeful as lawmakers gridlocked over relief deal
* McKesson, Tyson Foods rise on robust earnings updates
* Indexes up: Dow 0.69%, S&P 0.64%, Nasdaq 1.28%

By Sagarika Jaisinghani and Medha Singh
Aug 3 (Reuters) - Wall Street's main indexes rose on Monday
as a rebound in multi-billion dollar deals, including
Microsoft's pursuit of TikTok's U.S. operations, lifted
sentiment in the absence of a fiscal coronavirus relief bill.
Microsoft MSFT.O jumped 4% on saying 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. Apple Inc AAPL.O jumped for a second straight day
following stunning quarterly results and announcing a
four-for-one stock split. At its current price of about $437 a
share, the tech giant is now about $132 billion - or around $30
a share - short of hitting $2 trillion in market capitalization.
Tech .SPLRCT far outpaced gains among the 11 S&P 500
sectors in morning trading.
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.
Congressional Democrats and Trump administration officials
will resume talks aimed at hammering out a relief bill on Monday
afternoon after missing a vital deadline last week to extend
relief benefits to tens of millions of jobless Americans.
"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 pockets 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 signaled
a pickup in July activity, mirroring upbeat factory activity
data from Europe and China. At 11:10 a.m. ET, the Dow Jones Industrial Average .DJI
was up 181.29 points, or 0.69%, at 26,609.61, the S&P 500 .SPX
was up 21.08 points, or 0.64%, at 3,292.20, and the Nasdaq
Composite .IXIC was up 137.49 points, or 1.28%, at 10,882.77.
With the U.S. corporate earnings season now past its
half-way mark, a record number of companies have beaten
dramatically lowered estimates, but the second quarter is still
set to be the low point for earnings this year. Drug distributor McKesson Corp MCK.N gained 4.4% after
boosting its full-year earnings forecast, while Tyson Foods Inc
TSN.N rose 2.6% on topping quarterly 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 .
Marathon Petroleum Corp MPC.N rose 1.2% on a deal to sell
its Speedway gas stations for $21 billion, while Kansas City
Southern KSU.N added 3.1% after a report said a group of
buyout investors were considering a takeover bid in a deal of
about $20 billion. Advancing issues outnumbered decliners 1.58-to-1 on the NYSE
and 1.84-to-1 on the Nasdaq.
The S&P index recorded 33 new 52-week highs and no new low,
while the Nasdaq recorded 118 new highs and 13 new lows.