Wall Street extends recent gains, led by megacaps
(For a Reuters live blog on U.S., UK and European stock markets, click
or type LIVE/ in a news window)
* China cuts key rates as economic data disappoints
* Growth outperforms value
* Walmart shares up ahead of results on Tuesday
* Indexes up: Dow 0.5%, S&P 500 0.4%, Nasdaq 0.5%
By Caroline Valetkevitch
NEW YORK, Aug 15 (Reuters) - U.S. stocks were higher in afternoon trading on Monday, adding to recent strong gains, with megacap growth shares rising as U.S. Treasury yields eased.
Shares of Apple Inc AAPL.O , up 0.5%, and Microsoft Corp MSFT.O , also up 0.5%, were among the biggest boosts to the S&P 500 and Nasdaq.
Treasury yields were slightly lower, while China's central bank cut key lending rates in a surprise move to revive demand after the economy unexpectedly slowed in July.
Stocks extended gains from last week when signs that inflation may have peaked in July increased investor confidence that a bull market could be under way.
Some investors also have been growing more convinced that the economy may avoid a severe downturn even as it copes with high inflation.
"We're back to growth doing well relative to value, and market participants looking at the (Federal Reserve) and saying, 'Hey, they're going to be cutting rates here sooner than we know, and that's going to be good for the equity market,'" said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
Higher interest rates can depress stock multiples, especially of technology and other growth stocks.
The Dow Jones Industrial Average .DJI rose 152.89 points, or 0.45%, to 33,913.94, the S&P 500 .SPX gained 15.65 points, or 0.37%, to 4,295.8 and the Nasdaq Composite .IXIC added 65.58 points, or 0.5%, to 13,112.76.
The S&P value index .IVX was up 0.3% while the growth index .IGX was up 0.5%.
Quarterly reports from big retailers are expected this week and will round out the second-quarter reporting period. Results from Walmart Inc WMT.N are due on Tuesday. Walmart's stock was up 0.3%.
U.S.-listed shares of China's e-commerce giant Alibaba Group Holding Ltd BABA.N slipped 0.9%.
Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio favored advancers.
The S&P 500 posted 7 new 52-week highs and 29 new lows; the Nasdaq Composite recorded 67 new highs and 25 new lows.
Reporting by Caroline Valetkevitch in New York Additional reporting by Bansari Mayur Kamdar, Susan Mathew and Sruthi Shankar in Bengaluru Editing by Arun Koyyur and Matthew Lewis
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.