US STOCKS-Wall St rises on Disney's surprise profit, services sector data

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* U.S. services sector activity hits 16-month high in July
* Walt Disney hits over 5-month high
* Energy stocks gain as oil prices touch 5-month high
* CVS, Humana, Regeneron deliver profit beat
* Indexes up: Dow 0.94%, S&P 0.58%, Nasdaq 0.36%

(Updates to open)
By Medha Singh
Aug 5 (Reuters) - U.S. stocks gained on Wednesday as data
showing an expansion in services industry last month added to
optimism stemming from Disney's surprise quarterly profit and
upbeat results from several healthcare companies.
A reading of ISM's non-manufacturing activity index
increased to 58.1 last month, the highest since March 2019, from
57.1 in June. Walt Disney Co's DIS.N shares jumped 8.9% to hit a more
than five-month high as revenue declines for its parks and media
networks were not as bad as feared. "Disney's beat helped continue the market's advance. In
general, earnings have been coming in better-than-expected,"
said Sam Stovall, chief investment strategist, CFRA Research in
New York.
Drugstore operator and health insurer CVS Health Corp
CVS.N topped estimates for quarterly profit and raised its
full-year forecast, while Humana Inc HUM.N and drugmaker
Regeneron Pharmaceuticals Inc REGN.O also posted
forecast-beating earnings. Johnson & Johnson JNJ.N rose about 0.7% after it said the
United States government would pay over $1 billion for 100
million doses of its investigational coronavirus vaccine.
Better-than-feared corporate results and a surge in shares
of heavyweight technology companies have fueled a
stimulus-driven rally in Wall Street's main indexes, bringing
the S&P 500 within 2.5% of its record high hit in February.
Earlier in the day, ADP National Employment Report showed
private payrolls increased by 167,000 in July, far below
economists expectations of 1.5 million additions. The ADP report
is considered a precursor to the monthly jobs report on Friday.
Investors have been concerned about signs that the U.S.
economic activity is stalling amid a surge in COVID-19
infections in parts of the country, strengthening the case for
more fiscal aid.
White House negotiators on Tuesday vowed to work "around the
clock" with congressional Democrats to try to reach a deal on
coronavirus relief package by the end of this week. Financials .SPSY , industrials .SPLRCI and materials
.SPLRCM stocks, that track economic growth, outperformed among
major S&P sectors.
Energy sector .SPNY rose the most as oil prices hit their
highest since early-March. O/R
At 10:15 a.m. ET, the Dow Jones Industrial Average .DJI
was up 252.77 points, or 0.94%, at 27,081.24, the S&P 500 .SPX
was up 19.19 points, or 0.58%, at 3,325.70. The Nasdaq Composite
.IXIC was up 39.58 points, or 0.36%, at 10,980.74.
Electric trucks maker Nikola Corporation NKLA.O slumped
10.1% after it reported a wider quarterly loss in its first
results as a listed entity. Advancing issues outnumbered decliners by a 2.57-to-1 ratio
on the NYSE and by a 1.80-to-1 ratio on the Nasdaq.
The S&P index recorded 40 new 52-week highs and no new low,
while the Nasdaq recorded 168 new highs and seven new lows.