US STOCKS-PepsiCo, oil help extend Wall St rally; S&P at 4-month high

  • Reuters
  • Stock Market News
US STOCKS-PepsiCo, oil help extend Wall St rally; S&P at 4-month high
Credit: © Reuters.

* Energy shares jump as oil gains on supply disruptions

* PepsiCo's best day in 7 yrs on strong Q2

* Nordstrom (NYSE: JWN ) down on disappointing forecast

* S&P 500 Q2 earnings growth seen at 21 pct -TR I/B/E/S

* Tesla gains on plans to open new plant in Shanghai

* Indexes up: Dow 0.56 pct, S&P 0.30 pct, Nasdaq 0.14 pct (Changes comment, adds details, updates prices)

By Amy Caren Daniel

July 10 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 at a four-month high, as energy shares got a boost from higher crude prices and strong results from PepsiCo signaled a solid start to the earnings season.

PepsiCo's shares PEP.O surged 3.9 percent and were poised for their biggest one-day jump in nearly seven years after the company's quarterly results topped estimates on strong sales of snacks.

The company also reaffirmed its full-year forecast amid signs of a gradual recovery in its soda business. drove a 0.82 percent gain in the consumer staples index .SPLRCS , with Coca-Cola KO.N rising 1 percent.

The energy index .SPNY rose 0.62 percent as crude prices gained on growing supply disruptions in Norway and Libya, but gains were pared after the United States said it would consider requests for waivers from Iranian oil sanctions. O/R

Shares of Exxon (NYSE: XOM ) XOM.N and Chevron (NYSE: CVX ) CVX.N were up around 1 percent each.

"The market is in a very optimistic mood. The economic data is very strong and the labor markets are strong, and companies are making a lot of money," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE: SCHW ) in Austin.

Overall, S&P 500 companies are expected to post second-quarter profit growth of around 21 percent, slightly higher than what was forecast in April, according to Thomson Reuters data.

However, investors and analysts will parse quarterly reports to gauge the impact of an escalating trade dispute between China and the United States on company earnings.

"In the end eventually the trade war could impact things but right now the economic data and other things are too strong that they are overshadowing the trade war," Frederick said.

Wall Street rose for a fourth straight session. At 12:45 p.m. EDT, the S&P 500 .SPX was up 8.24 points, or 0.30 percent, at 2,792.45. The index reached a peak of 2,795.58, its highest since March 13.

The Dow Jones Industrial Average .DJI was up 137.75 points, or 0.56 percent, at 24,914.34 and the Nasdaq Composite .IXIC was up 10.56 points, or 0.14 percent, at 7,766.76.

Ten of the 11 S&P sectors were higher, led by a 1.20 percent gain in the utilities sector .SPLRCU . The lone laggard were financials .SPSY , off 0.39 percent after a 2.3 percent surge on Monday.

JPMorgan Chase (NYSE: JPM ) JPM.N , Wells Fargo (NYSE: WFC ) WFC.N and Citigroup (NYSE: C ) C.N are scheduled to report results on Friday. Their shares fell between 0.3 and 1.3 percent.

Nordstrom JWN.N dropped 4.5 percent, the most on the S&P, after the upscale department store operator issued a bleak sales forecast for the rest of 2018.

Cerner CERN.O was the second-biggest loser on the S&P, falling 4.3 percent after Evercore ISI downgraded the stock to "underperform".

Declining issues outnumbered advancers for a 1-to-1 ratio on the NYSE and a 1.37-to-1 ratio on the Nasdaq.

The S&P index recorded 28 new 52-week highs and no new lows, while the Nasdaq recorded 88 new highs and 18 new lows.

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