US STOCKS-Nasdaq hits record after upbeat U.S. business surveys

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* Deere results boost S&P industrials index
* U.S. existing home sales hit 14-year high in July
* U.S. business activity surges to early 2019 levels
* Indexes: Dow +0.55%, S&P 500 +0.24%, Nasdaq +0.30%

(Updates to afternoon)
By Noel Randewich
Aug 21 (Reuters) - The Nasdaq hit a record high on Friday,
while the S&P 500 and Dow also gained, as data pointed to some
pockets of strength in the U.S. economy.
Business activity snapped back to the highest since early
2019 in the United States in August, according to IHS Markit
surveys, as companies in both manufacturing and services sectors
saw a resurgence in new orders. Another report showed U.S. home sales rose at a record pace
for a second straight month in July and home prices hit all-time
highs. The unexpectedly sharp increases in Markit's indexes extend
a pattern of choppy U.S. economic data this week - including
weekly jobless claims - that paint a picture of a fitful
recovery from the COVID-19 recession.
"It's not surprising to see a pickup in manufacturing as the
economy has started to reopen, even though pockets of the
country have pulled back on their reopenings," said Lindsey
Bell, chief investment strategist at Ally Invest. "It's an
encouraging sign and it supports the upside we have seen in the
markets."
Bets that technology-focused companies including Apple Inc
AAPL.O and Amazon.com AMZN.O will emerge stronger from the
pandemic have set the S&P 500 and the Nasdaq on track to close
out the week higher.
On Tuesday, the S&P 500 recouped all its losses caused by
the coronavirus-driven slump and joined the Nasdaq in scaling
new peaks. The Dow is still 6% below its all-time high in
February.
Investors also worry about a stalemate in talks between
House Democrats and the White House over the next coronavirus
aid bill as about 28 million Americans continued to collect
unemployment checks. In afternoon trading, the Dow Jones Industrial Average
.DJI was up 0.55% at 27,893.36 points, while the S&P 500
.SPX gained 0.24% to 3,393.49.
The Nasdaq Composite .IXIC added 0.3% to 11,298.69.
The S&P 500 information technology .SPLRCT and industrial
indexes .SPLRCI led gains.
Apple Inc AAPL.O rose 4% as its market value continued to
swell after the most valuable publicly listed company in the
world crossed the $2 trillion milestone this week.
Tesla TSLA.O also added another 4% after surging past the
$2,000 a share mark on Thursday for the first time, extending
its rally ahead of an upcoming share split.
Deere & Co DE.N rose 5.2% after the world's largest farm
equipment maker raised its full-year earnings forecast.
Declining issues outnumbered advancing ones on the NYSE by a
2.12-to-1 ratio; on Nasdaq, a 2.34-to-1 ratio favored decliners.
The S&P 500 posted 21 new 52-week highs and no new lows; the
Nasdaq Composite recorded 50 new highs and 27 new lows.