US STOCKS-Cyclical gains lift stocks, Yellen news gives brief boost

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* Vaccine could reach first Americans by mid-December
* Tesla nears $500 billion in market cap
* Surging coronavirus cases cap stock market gains

(Updates with volume data, market breadth)
By Chuck Mikolajczak
NEW YORK, Nov 23 (Reuters) - U.S. stocks closed higher in a
choppy session on Monday as hopes for a COVID-19 vaccine lifted
economically sensitive sectors such as energy and industrials,
but a pullback in megacap shares curbed gains on the S&P 500 and
Nasdaq.
Cyclicals led gains, with energy .SPNY ahead by 7.09%
while industrials .SPLRCI and financials .SPSY each rose
more than 1%, as data showed monthly business activity expanded
at the fastest rate in more than five years. Energy shares got a boost from another gain in oil prices,
which have risen on anticipation a vaccine will help demand
recover. "It's Monday vaccine trade day," said Ken Polcari, managing
partner at Kace Capital Advisors in Jupiter, Florida.
"As they move out of those growth names, it's still this
continued move into larger cyclical, value names which is why
you see the Dow performing so well and the Nasdaq under some
pressure."
Declines in technology and tech-related heavyweight names
such as Apple Inc AAPL.O and Netflix Inc NFLX.O muted gains
as investors rotated out of stocks seen as safe bets following a
coronavirus-led crash earlier this year.
Major averages got a late boost after the Wall Street
Journal reported U.S. President-elect Joe Biden plans to
nominate former Federal Reserve Chair Janet Yellen to be the
next Treasury secretary.
"A known commodity in a uncertain situation is a potential
boon for the market," said Jake Dollarhide, chief executive
officer of Longbow Asset Management in Tulsa, Oklahoma.
"The Treasury is probably more important than congress in
getting the next stimulus package through. This removes a huge
roadblock."
The Dow Jones Industrial Average .DJI rose 327.79 points,
or 1.12%, to 29,591.27, the S&P 500 .SPX gained 20.05 points,
or 0.56%, to 3,577.59 and the Nasdaq Composite .IXIC added
25.66 points, or 0.22%, to 11,880.63.
Evidence of high efficacy rates in experimental COVID-19
vaccines had lifted the S&P 500 .SPX to a record high this
month and brought the blue-chip Dow .DJI close to breaching
30,000 points for the first time, breathing new life into
cyclical stocks that were beaten down during the recession.
AstraZeneca Plc AZN.L on Monday became the latest major
drugmaker to say its vaccine could be around 90% effective,
while the U.S. health regulator is likely to approve in
mid-December the distribution of Pfizer Inc's PFE.N vaccine.
Volume is expected to be on the lighter side moving closer
to the Thanksgiving holiday on Thursday.
Sentiment was dented by new lockdowns to contain a surge in
coronavirus infections. Nevada on Sunday tightened curbs on
casinos, restaurants and bars, while imposing a broader mandate
for face-coverings over the next three weeks. Hopes of more monetary stimulus were dampened after Treasury
Secretary Steven Mnuchin last week pulled the plug on some of
the Fed's pandemic emergency lending programs. Richmond Federal Reserve Bank President Thomas Barkin said
on Monday that households could struggle over the next several
months without more government aid to provide support until a
vaccine becomes widely available. Tesla Inc TSLA.O shares surged 6.58% to move closer toward
hitting $500 billion in market capitalization ahead of its
inclusion in the S&P 500 next month. Advancing issues outnumbered declining ones on the NYSE by a
2.93-to-1 ratio; on Nasdaq, a 1.95-to-1 ratio favored advancers.
The S&P 500 posted 31 new 52-week highs and no new lows; the
Nasdaq Composite recorded 177 new highs and 11 new lows.
Volume on U.S. exchanges was 12.10 billion shares, compared
with the 10.87 billion average for the full session over the
last 20 trading days.