US STOCKS-Wall St rises on trade hopes, strong consumer spending data

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* Trade-sensitive technology and industrials rise
* Ulta Beauty tumbles on full-year forecast cut
* U.S. consumer spending increases strongly
* Markets to be shut for Labor Day on Monday
* Indexes up: Dow 0.47%, S&P 0.43%, Nasdaq 0.34%

(Updates to open)
By Akanksha Rana
Aug 30 (Reuters) - U.S. stocks rose on Friday as an easing
of trade tensions between the United States and China, and data
showing solid domestic consumer spending abated concerns that
major economies were on the brink of a recession.
The Commerce Department said consumer spending, which
accounts for more than two-thirds of U.S. economic activity,
rose 0.6% last month after an unrevised 0.3% gain in June.
However, the pace of growth in consumption is unlikely to be
sustained amid tepid income gains. A sharp heightening of tensions this month after the U.S.
and China slapped tariffs on each other's goods, caused panic
across global markets and resulted in a key part of the U.S.
yield curve, a closely-followed recession indicator, inverting.
The two economic superpowers gave signs on Thursday that
they will resume trade talks, as the countries discussed the
next round of in-person negotiations in September ahead of a
looming deadline for additional U.S. tariffs. That helped Wall Street rise more than 1% on Thursday and
set the indexes on pace to post their best weekly gain since
June. The benchmark S&P 500 .SPX index is now 3% off its
record high hit in late July.
"It is a continuation of what we saw yesterday and there is
optimism that there's going to be some sort of progress, that
seems to be the biggest factor," said Scott Brown, chief
economist at Raymond James in St. Petersburg, Florida.
Trade sensitive technology .SPLRCT and industrial stocks
.SPLRCI rose 0.58% and 0.81%, respectively, while chipmakers,
which get a major portion of their revenue, jumped.
The Philadelphia chip index .SOX was up 1.40%.
However, markets are bracing for a new round of U.S. tariffs
on some Chinese goods that come into effect on Sunday.
"The market believes that there will be some type of
negotiation, but there is real danger this trade conflict is
going to last, especially with the magnitude of September
tariffs," added Brown.
Hopes that the Federal Reserve would step in to impede any
slowdown in economic growth as a result of the trade war, have
led traders to fully price in an interest rate cut at the
central bank meeting next month.
Investors are now watching out for the monthly jobs report
and the manufacturing data next week to gauge the health of the
U.S. economy, and gain insight regarding the Fed's path of
future interest rate cuts.
At 9:55 a.m. ET the Dow Jones Industrial Average .DJI was
up 122.64 points, or 0.47%, at 26,484.89, the S&P 500 .SPX was
up 12.43 points, or 0.43%, at 2,937.01 and the Nasdaq Composite
.IXIC was up 27.33 points, or 0.34%, at 8,000.72.
Gains in markets were largely broad-based, with the
defensive utilities .SPLRCU and real estate sectors .SPLRCR
posting the smallest losses.
Ulta Beauty Inc ULTA.O tumbled 27.5% to the bottom of the
S&P 500 after the cosmetics company cut its full-year profit
forecast.
The biggest gainer on the benchmark index was Campbell Soup
Co CPB.N , which rose 6.2% after its quarterly profit beat
estimates. Advancing issues outnumbered decliners for a 2.41-to-1 ratio
on the NYSE and a 1.79-to-1 ratio on the Nasdaq.
The S&P index recorded 33 new 52-week highs and no new low,
while the Nasdaq recorded 26 new highs and 18 new lows.