US STOCKS-Wall Street gains ahead of Biden's spending plan outline

Reuters

Published Mar 31, 2021 16:28

US STOCKS-Wall Street gains ahead of Biden's spending plan outline

(For a Reuters live blog on U.S., UK and European stock
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* Walgreens rises after forecast raise
* U.S. private payrolls increase in March
* Three main indexes headed for quarterly gains
* Apple rises as UBS upgrades to 'buy'
* Indexes up: Dow 0.09%, S&P 0.42%, Nasdaq 1.22%

(Updates to market open)
By Medha Singh and Devik Jain
March 31 (Reuters) - Technology shares lifted major U.S.
stock indexes on Wednesday as investors awaited details on
President Joe Biden's massive infrastructure plan, while Wall
Street eyed its fourth straight quarterly gain.
The industrial sector .SPLRCI hit a record high ahead of
an outline of the $3 trillion-$4 trillion package that will
target traditional projects like roads and bridges alongside
investments in the electric vehicle market. The size and scale of the proposal, as well as the question
of how it would be paid for is likely to set the stage for the
next partisan clash in Congress. Unprecedented stimulus and a swift vaccine rollout in the
United States helped the S&P 500 and the Dow hit record closing
highs last week.
The Nasdaq jumped more than 1% on Wednesday, but the index
is about 7% off its all-time peak as high-flying tech names have
been hit by a surge in U.S. 10-year bond yields US10YT=RR .
"The infrastructure plan and the climbing yields just mean
that rotation from growth to value is going to continue ... over
next several weeks," said Peter Cardillo, chief market economist
at Spartan Capital Securities in New York.
After leading Wall Street's rally from the coronavirus lows
of last year, the technology-heavy Nasdaq's 1.2% gain has lagged
the S&P 500 and the Dow this quarter.
At 09:57 a.m. ET, the Dow Jones Industrial Average .DJI
rose 29.72 points, or 0.09%, to 33,096.68, and the S&P 500
.SPX gained 16.44 points, or 0.42%, to 3,974.99.
Apple Inc AAPL.O rose 1.6% after brokerage UBS upgraded
the stock to "buy" on stable long-term demand for iPhones with
better authorized service providers. Technology sector .SPLRCT added about 1%, while financials
.SPSY and energy .SPNY stocks dropped in a reversal of this
quarter's trend.
Latest numbers showed U.S. private employers boosted hiring
in March as more Americans got vaccinated against COVID-19. The
report is in line with recent signs of improvement in the labor
market and comes ahead of the more comprehensive monthly jobs
report on Friday. Walgreens Boots Alliance Inc WBA.O advanced 5% after
raising its 2021 profit forecast on higher sales at its U.S.
retail pharmacy stores. Chewy Inc CHWY.N jumped 10% as brokerages raised their
price targets on the stock after the online pet product retailer
posted fourth-quarter profit from year-ago loss. Advancing issues outnumbered decliners by a 1.7-to-1 ratio
on the NYSE and by a 2.5-to-1 ratio on the Nasdaq.
The S&P 500 posted 23 new 52-week highs and no new low while
the Nasdaq recorded 41 new highs and 20 new lows.

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