US STOCKS-Wall St bounces on hopes for piecemeal stimulus deal

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* Airlines rise after Trump's call for support
* All eyes on Fed minutes, vice-presidential debate
* Materials, financials, industrials stocks lead gains
* Indexes up: Dow 1.55%, S&P 1.29%, Nasdaq 1.34%

(Adds comment; updates prices)
By Devik Jain and Sagarika Jaisinghani
Oct 7 (Reuters) - Wall Street's main indexes jumped on
Wednesday as investors grew hopeful of at least a partial deal
on more fiscal stimulus after U.S. President Donald Trump
abruptly called off negotiations on a comprehensive bill in the
previous session.
Ten of the 11 major S&P indexes were up, led by gains in
materials .SPLRCM , financials .SPSY , industrials .SPLRCI
and consumer discretionary stocks .SPLRCD . Only the real
estate sector .SPLRCR - considered a defensive play - was
marginally lower.
The Dow Jones airlines index .DJUSAR jumped 2.6% after
Trump urged Congress on Tuesday to pass a series of smaller,
standalone bills that would include a bailout package for the
battered airline industry. "The market is reacting positively to the fact that there is
a possibility of targeted stimulus," said Carlton Neel, chief
executive officer of investment research firm Chaikin Analytics
in Philadelphia.
Hopes of a new round of fiscal aid had fueled a broad rally
in U.S. stocks on Monday. Federal Reserve Chair Jerome Powell on
Tuesday also called for more help for businesses and households
to keep a nascent economic recovery from faltering.
Minutes of the Fed's September policy meeting are due later
in the day, with investors looking for details on the central
bank's new approach to inflation. On Wednesday, Vice President Mike Pence and Democratic
challenger Kamala Harris are also set to square off in their
only debate, which comes less than a week after Trump contracted
COVID-19. Reuters/Ipsos opinion polls released on Tuesday showed
Democratic presidential candidate Joe Biden expanding his lead
over Trump in battleground Michigan and the two candidates
locked in a toss-up race in North Carolina. "A Biden presidency will probably have even more fiscal
stimulus and that could be more positive for smaller businesses,
so there's a chance that small-caps will actually start to
outperform versus the big technology companies," Neel said.
The S&P small- and mid-cap indexes have lagged a rebound in
the S&P 500, which was driven by a narrow rally in large-cap
technology stocks.
While the benchmark index is up 5% on the year, the
small-cap .SPCY and mid-cap .IDX indexes are still down
about 11% and 5%, respectively.
At 11:28 a.m. ET, the Dow Jones Industrial Average .DJI
was up 1.55%, the S&P 500 .SPX was up 1.29% and the Nasdaq
Composite .IXIC was up 1.34%.
The S&P banking subindex .SPXBK jumped 1.9% as bond prices
fell ahead of a $35 billion U.S. 10-year note auction later in
the day. US/
Analysts expect earnings at S&P 500 firms to have dropped
about 21% in the third quarter, according to IBES data from
Refinitiv.
Still, the pace of declines is expected to have slowed
following a 30.6% slump in the second quarter, when Corporate
America took a hit from nationwide lockdowns.
Eli Lilly and Co LLY.N rose 3.4% after saying it had
submitted a request to the U.S. Food and Drug Administration for
emergency use of its experimental COVID-19 antibody treatment.
Advancing issues outnumbered decliners about 3-to-1 on the
NYSE and the Nasdaq.
The S&P index recorded 26 new 52-week highs and no new low,
while the Nasdaq recorded 84 new highs and eight new lows.