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* Snap Inc falls after disappointing user growth
* Texas Instruments gains on strong revenue forecast
* Indexes up: Dow 0.08%, S&P 0.10%, Nasdaq 0.17%
(Updates to open)
By Medha Singh and Devik Jain
July 22 (Reuters) - U.S. stocks rose on Wednesday as a boost
from technology stocks along with optimism about another round
of stimulus for the virus-stricken economy overshadowed worries
over a spike in tensions between the United States and China.
Microsoft Corp MSFT.O and Tesla Inc TSLA.O rose ahead of
their quarterly results due after markets close, helping the
Nasdaq outperform the other two major indexes.
The Philadelphia semiconductor index .SOX rose 0.6% after
Texas Instruments Inc TXN.O forecast third-quarter revenue
above estimates as a global shift to work-from-home boosted
demand for chips used in tablets, personal computers and
servers. The technology sector .SPLRCT rose more than any S&P
sector.
"One reason for the enthusiasm that investors have had with
tech stocks is because they are coming through in terms of
maintaining their earnings growth and advancing revenue
increases," said Sam Stovall, chief investment strategist at
CFRA Research in New York.
A largely upbeat start to the second-quarter earnings
season, hopes for an eventual COVID-19 vaccine and an expected
official support for the economy has brought the S&P 500 about
4% below its record February closing high.
U.S. Republicans and Democrats remained far apart on Tuesday
on how much to spend on the next round of coronavirus relief as
they raced to craft a legislation before unemployment insurance
for Americans thrown out of work expire by the end of this
month. Earlier on Wednesday, futures had taken a hit after
Washington told China to close its consulate in Houston, citing
a need to protect American intellectual property and
information, deepening a deterioration in bilateral relations. A
source said Beijing was considering shutting down the U.S.
consulate in Wuhan. "We have enough uncertainty related to the coronavirus and
the heating up of dispute between China and U.S. is not helping
matters," Stovall said.
At 10:30 a.m. ET, the Dow Jones Industrial Average .DJI
was up 22.35 points, or 0.08%, at 26,862.75 and the S&P 500
.SPX was up 3.33 points, or 0.10%, at 3,260.63. The Nasdaq
Composite .IXIC was up 17.90 points, or 0.17%, at 10,698.26.
Pfizer Inc PFE.N jumped 2.4% as the drugmaker and German
biotech firm BioNTech SE 22UAy.F said they would get $1.95
billion from the U.S. government to produce and deliver 100
million doses of their COVID-19 vaccine candidate. Hospital operator HCA Healthcare Inc HCA.N surged 10.9%,
the most on the S&P 500, after reporting better-than-expected
quarterly revenue. Thermo Fisher Scientific Inc TMO.N jumped
2.9% after the scientific instruments maker beat second-quarter
results.
Snap Inc SNAP.N declined 7.6% as it forecast fewer
current-quarter users than estimates and said the initial lift
in user growth at the start of coronavirus-led lockdowns
dissipated faster than it expected. Advancing issues nearly matched decliners on the NYSE and
the Nasdaq.
The S&P index recorded 32 new 52-week highs and one new low,
while the Nasdaq recorded 59 new highs and six new lows.