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US STOCKS-Tech leads Wall Street higher as virus fears mount



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* US coronavirus cases top 7 million

* Costco Wholesale is down due to high COVID-19 costs

* Cruise companies jump after upgrading from Barclays

* Indices up: Dow 0.40%, S&P 0.68%, Nasdaq 1.27% (early afternoon updates)

September 25 (Reuters) – Wall Street major indices rose on Friday, led by tech stocks, but were still on their way to their longest weekly losing streak in a year as fears over the economic impact of coronavirus raised investor sentiment impaired.

The stocks of tech mega-caps like Facebook Inc, Alphabet Inc, Amazon.com Inc, Apple Inc and Netflix Inc, which tend to outperform in economic uncertainty, rose between 0.5% and 2.3%.

The information technology index rose another 1

.4% as investors dropped value stocks on signs of a slowdown in the general economic recovery.

All three major U.S. stock indices were on their way to their fourth straight week of declines – their longest weekly streak of losses since August 2019.

Volatility has also increased as investors sought clarity on further stimulus for Congress ahead of the November 3rd presidential election.

“You had this nice rebound in the summer and the economy is just a little more fragile in the fall, especially given the amount of momentum we have now had to take,” said Mike Dowdall, portfolio manager at BMO Global Asset Management in Chicago.

At 1:03 p.m. ET, the Dow Jones Industrial Average rose 107.27 points, or 0.40%, to 26,922.71, the S&P 500 rose 22.08 points, or 0.68%, to 3,268.67, and the Nasdaq Composite by 135.07 points or 1.27% at 10,807.34.

The S&P industrial sector gained 0.9% as data showed that orders for major US-made capital goods rose in August, while energy stocks fell 1.1% on one of their worst weeks brought the coronavirus-triggered crash in March.

Royal Caribbean Cruises Ltd, Norwegian Cruise Line and Carnival Corp rose more than 6% after Barclays upgraded their shares to “overweight” according to a report.

Boeing Co was up 4.3% after Europe’s top flight safety agency said the aircraft maker’s grounded 737 MAX could get regulatory approval to resume flight in November and put into service by the end of the year.

Costco Wholesale Corp fell 1.9% as the warehouse chain experienced high coronavirus-related costs for the second straight quarter.

Novavax Inc rose 10.6% after the UK drug maker launched a late-stage study of its experimental COVID-19 vaccine.

Progressive issues outperformed declines 1.49 to 1 on the NYSE and 2.31 to 1 on the Nasdaq.

The S&P index made a new 52-week high and no new low, while the Nasdaq made 15 new highs and 35 new lows. (Reporting by Devik Jain in Bengaluru; editing by Arun Koyyur and Anil D’Silva)


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