US STOCKS-Tech rally elevates Nasdaq to record high

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* Home improvement retailers seen getting sales boost
* Principia Biopharma at record high on Sanofi buyout
* Nvidia hits record high on PT raises
* Indexes: Dow -0.25%, S&P 500 +0.35%, Nasdaq +0.95%

(Updates to afternoon trading)
By Noel Randewich
Aug 17 (Reuters) - The Nasdaq surged to an all-time high on
Monday, while the S&P 500 approached its own record level, with
both indexes lifted by Nvidia and other technology stocks.
The benchmark S&P 500 .SPX was just shy of its Feb. 19
intraday record high after testing that level for much of last
week, while the Dow Jones .DJI was weighed down by losses in
financial and industrial stocks.
Nvidia Corp NVDA.O was among the top boosts to the S&P 500
and Nasdaq, surging almost 7% and hitting a record high after
two analysts raised their price targets ahead of the chipmaker's
quarterly results on Wednesday.
In afternoon trading, the tech-heavy Nasdaq exceeded its
Aug. 7 intra-day record high. The Nasdaq was the first of the
major Wall Street indexes to recoup its coronavirus-induced
losses as several of its largest constituents, including
Amazon.com Inc AMZN.O and Netflix Inc NFLX.O , benefited from
curbs on social activity.
"Tech is the only trade," said Jake Dollarhide, chief
executive officer of Longbow Asset Management in Tulsa,
Oklahoma. "Things that were 10 years away on Feb. 18 are here
now: Distance learning, seeing your doctor via Zoom, ordering
pharmaceuticals via the mail."
Lowe's Cos Inc LOW.N and Home Depot Inc HD.N rose more
than 2% each ahead of their earnings later in the week.
The two home improvement chains are expected to have
received a bump to their quarterly sales from consumers looking
to do minor repair work while spending more time at home.
The S&P 500 retailing index .SPXRT rose over 1%, with
heavyweights Walmart Inc WMT.N and Target Corp TGT.N also
set to report results this week.
"Earnings season in general has been much better than
expected, but a big part of that is because the expectation has
been so low," said Willie Delwiche, investment strategist at
Baird in Milwaukee.
As of Friday, 457 companies in the S&P 500 had posted
results, of which 81.4% came in above dramatically lowered
expectations, according to Refinitiv data.
Minutes of the Federal Reserve's latest meeting, due on
Wednesday, are expected to provide more insight into the central
bank's view of an economic recovery, while housing starts data
is also on tap.
Caution is expected to seep into markets ahead of the
November U.S. presidential vote, as the election season kicks
into higher gear with the Democratic National Convention, which
runs Monday through Thursday. At 1:58 pm ET, the Dow Jones Industrial Average .DJI was
down 0.25% at 27,860.24 points, while the S&P 500 .SPX gained
0.35% to 3,384.77.
The Nasdaq Composite .IXIC added 0.95% to 11,123.51.
Eight of the 11 major S&P sectors rose, with technology
.SPLRCT providing the biggest support to the S&P 500 index.
Among individual movers, Principia Biopharma Inc PRNB.O
jumped over 9% to a record high after French healthcare firm
Sanofi SA SASY.PA said it would buy the company for about $3.7
billion. Advancing issues outnumbered declining ones on the NYSE by a
1.25-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favored advancers.
The S&P 500 posted 29 new 52-week highs and no new lows; the
Nasdaq Composite recorded 77 new highs and nine new lows.