US STOCKS-Nasdaq lags S&P, Dow as big tech weighs

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* Economy-linked stocks gain
* Pfizer, Merck rise on supply deals for COVID-19 treatments
* Jobless claims still remain at elevated levels
* Tech the sole losing S&P subsector
* Indexes up: Dow 0.70%, S&P 0.50%, Nasdaq 0.06%

(Updates prices, comments)
By Devik Jain and Ambar Warrick
Dec 23 (Reuters) - The S&P 500 and the Dow rose on
Wednesday, while the Nasdaq lagged as investors shifted out of
technology and into cheaper sectors that are poised to benefit
from an eventual economic recovery.
Investors also appeared to have shrugged off a threat from
U.S. President Donald Trump to not sign an $892 billion
coronavirus relief bill, saying it should be amended to increase
the amount in the stimulus checks. "Either we'll get exactly what was passed, which is very
positive for the economy, or we'll get something even bigger and
the market likes it either way," said Thomas Hayes, managing
member at Great Hill Capital Llc in New York.
Ten of the 11 major S&P sectors were higher, with energy
stocks .SPNY rising the most as investors clung to hopes of a
sooner-than expected economic recovery on the back of easy
monetary policy, high liquidity and a COVID-19 vaccine program.
Technology stocks .SPLRCT including Microsoft MSFT.O ,
Paypal PYPL.O and Amazon.com AMZN.O , which have consistently
outperformed during the pandemic, dragged the Nasdaq .IXIC
lower.
"Technology is going to be a major driver of growth, but at
the same time there's better value in the value segment of the
market, and that's especially true if the vaccine enables the
economy to recover," said Chuck Lieberman, chief investment
officer of Advisor Capital Management in New Jersey.
Elsewhere, reports that the European Union and Britain were
in the final stages of a Brexit trade deal also brewed some
optimism in markets. At 11:52 a.m. ET, the Dow Jones Industrial Average .DJI
was up 211.00 points, or 0.70%, at 30,226.51, the S&P 500 .SPX
was up 18.26 points, or 0.50%, at 3,705.52. The Nasdaq Composite
.IXIC was up 7.52 points, or 0.06%, at 12,815.43.
Data showed initial claims for state unemployment benefits
fell last week but remained at elevated levels. A separate
report showed consumer spending fell last month. While the data painted a grim picture of the economy, major
Wall Street indexes were still set to mark large annual gains on
the back of unprecedented fiscal and monetary responses to the
pandemic.
Drugmaker Pfizer Inc PFE.N rose 2.3% after a deal to
supply the United States with 100 million additional doses of
its COVID-19 vaccine by July. Merck & Co Inc MRK.N added 0.9% following its own COVID-19
treatment agreement with the United States. Electric-truck maker Nikola Corp NKLA.O plunged 10.1%
after it called off a deal to develop electric garbage trucks
with recycling and waste disposal firm Republic Services Inc
RSG.N . American Airlines Group AAL.O and United Airlines Holdings
UAL.O rose 2.9% and 2.8%, respectively, as they outlined plans
to bring back furloughed employees this month. Advancing issues outnumbered decliners by a 2.91-to-1 ratio
on the NYSE and by a 2.08-to-1 ratio on the Nasdaq.
The S&P index recorded 31 new 52-week highs and no new lows,
while the Nasdaq recorded 241 new highs and one new low.