US STOCKS-Wall St gains on surprise services data, China-led rebound hopes

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* ISM non-manufacturing index jumps to highest since
February
* Uber jumps on deal to buy food delivery app Postmates
* Tesla climbs as JPM hikes price target
* Regeneron up as COVID-19 antibody cocktail in late-stage
trial
* Indexes: Dow 1.25%, S&P 1.31%, Nasdaq 1.84%

(Updates to open)
By Medha Singh
July 6 (Reuters) - Wall Street's major indexes climbed on
Monday as data showing unexpected growth in the U.S. services
sector last month and optimism over China's economic revival
helped investors look past a surge in new cases of COVID-19 at
home.
The ISM's non-manufacturing activity index jumped to 57.1 in
June, almost returning to pre-pandemic levels, but a recent
surge in COVID-19 cases in the United States has threatened the
emerging recovery. During Asian hours, Chinese stocks surged 5% on ample
liquidity, cheap funding and expectations of a faster and a
better bounce-back in business activity than other major
countries that are still battling the coronavirus crisis. .SS
A slew of upbeat U.S. data, including a record rise in June
payrolls, has powered the Nasdaq .IXIC to all-time highs and
brought the S&P 500 .SPX and the Dow .DJI about 6% and 11%
below their respective peaks from February.
"Investors are more focused on what the other side of this
pandemic looks like, as opposed to the short-term risks of
shutdowns," said Matt Lindholm, managing director - investment
strategies at CAZ Investments in Houston.
A sharp jump in COVID-19 cases recently in the United States
has cast a shadow over the strong rally in stocks as many states
have curtailed their reopening plans, threatening to derail the
economic recovery.
During the Independence Day weekend, several states reported
a record increase in new infections, with Florida surpassing the
highest daily tally reported by any European country during the
peak of the outbreak. At 10:18 a.m. ET, the Dow Jones Industrial Average was up
322.73 points, or 1.25%, at 26,150.09, the S&P 500 was up 41.08
points, or 1.31%, at 3,171.09 and the Nasdaq Composite .IXIC
was up 187.95 points, or 1.84%, at 10,395.58.
All the 11 major S&P sectors were trading higher, with
technology .SPLRCT and financial .SPSY stocks providing the
biggest boost to the benchmark S&P 500.
Among individual shares, Tesla Inc TSLA.O surged 7.4%,
building on a four-day rally, after JPMorgan bumped up its price
target for the electric carmaker's stock following its
better-than-expected quarterly deliveries.
Uber Technologies Inc UBER.N climbed 4.4% after the
ride-sharing company agreed on a deal to buy food-delivery app
Postmates Inc in a $2.65-billion all-stock agreement.
Regeneron Pharmaceuticals Inc REGN.O gained 1.5% as the
drugmaker said it had begun late-stage clinical trials to assess
the effectiveness of its antibody cocktail in preventing and
treating COVID-19. Dominion Energy Inc D.N and Duke Energy Corp DUK.N fell
6.1% and 1.5%, respectively, after the energy firms abandoned
the $8-billion Atlantic Coast Pipeline project after a long
delay to clear legal roadblocks almost doubled its estimated
cost. Advancing issues outnumbered decliners by a 4.28-to-1 ratio
on the NYSE, and a 2.50-to-1 ratio on the Nasdaq.
The S&P index recorded 31 new 52-week highs and no new low,
while the Nasdaq recorded 115 new highs and nine new lows.