US STOCKS-Wall Street drifts higher as focus turns to Georgia runoffs

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markets, click LIVE/ or type LIVE/ in a news window)
* U.S.-listed Chinese cos jump after NYSE flips delisting
decision
* Micron jumps after Citi's double upgrade
* Wall Street's fear gauge slips after Monday's surge
* Indexes up: Dow 0.41%, S&P 0.44%, Nasdaq 0.49%

(Adds comment, details; updates prices)
By Medha Singh and Devik Jain
Jan 5 (Reuters) - Wall Street's main indexes were up after a
weak start on Tuesday as investors waited for the outcome of
Georgia's Senate runoff elections, which are expected to
determine the balance of power in Washington.
While a "blue sweep" of Congress could usher in greater
fiscal stimulus to aid the coronavirus-ravaged economy, it could
also pave the way for President-elect Joe Biden to push through
greater corporate regulation and higher taxes, hurting some
areas of the market. "Investors are taking a wait-and-see attitude ... there's a
lot to be concerned about - not only in the U.S. with the
elections but also because of the different strains of the virus
that are now being reported around the globe," CFRA chief
investment strategist Sam Stovall said.
The latest polls from data website 538 gave a slight edge to
the two Democratic challengers in their respective races.
The Cboe Volatility Index .VIX flip-flopped after closing
at its highest level in two months in the prior session, which
saw Wall Street's main indexes drop to two-week lows on concerns
over a persistent surge in coronavirus cases. All major S&P sectors were higher, with energy stocks
.SPNY surging about 2% on the back of higher oil prices. O/R
The dividend-paying defensive sectors - consumer staples
.SPLRCS , utilities .SPLRCU and real estate .SPLRCR - were
the laggards.
At 09:48 a.m. ET the Dow Jones Industrial Average .DJI
rose 125.12 points, or 0.41%, to 30,349.01, the S&P 500 .SPX
gained 16.43 points, or 0.44%, to 3,717.07 and the Nasdaq
Composite .IXIC gained 74.48 points, or 0.59%, to 12,772.93.
Although the start of vaccine rollouts and massive monetary
support powered the major U.S. stock indexes to record levels
recently, the discovery of a more contagious strain of the
coronavirus and the latest virus-related curbs have muddied the
economic outlook.
Britain began its third national lockdown to fight the
spread of a highly contagious variant that threatens to
overwhelm the healthcare system. Meanwhile, New York on Monday
found its first case of the "UK" variant. "The market could end up being choppy for much of the first
quarter as investors try to digest soft economic data because of
the most current lockdowns," Stovall said.
ISM survey showed U.S. manufacturing activity rose to its
highest level in nearly 2-1/2 years in December, likely as
spiraling new COVID-19 infections pulled demand away from
services towards goods. Chipmaker Micron Technology Inc MU.O rose about 5% after
Citigroup raised its rating on the stock to "buy" on
expectations of a recovery in demand and pricing for DRAM chips.
U.S.-listed shares of China Telecom Corp Ltd CHA.N and
China Mobile Ltd CHL.N added about 10% each, while those of
China Unicom Hong Kong Ltd CHU.N advanced 16% after the NYSE
reversed its decision to delist the stocks. Advancing issues outnumbered decliners by a 2.6-to-1 ratio
on the NYSE and by a 2.4-to-1 ratio on the Nasdaq.
The S&P 500 posted seven new 52-week highs and no new lows,
while the Nasdaq recorded 54 new highs and two new lows.