US STOCKS-Wall St gains as investors 'buy the dip' on upbeat jobs data

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* Energy stocks fall as oil declines over 3%
* Tesla dips as Musk rejects bitcoin
* Transports, chips, small caps outperform
* Indexes up: Dow 1.38%, S&P 1.27%, Nasdaq 0.7%

(Updates to late afternoon, changes dateline, byline)
By Stephen Culp
NEW YORK, May 13 (Reuters) - Wall Street advanced in a broad
rally on Thursday, bouncing back from three straight days of
selling as upbeat labor market data prompted investors to buy
shares that stand to gain most from economic revival.
All three major U.S. stock indexes were in positive
territory, with the Nasdaq, weighed by Tesla Inc TSLA.O ,
picking up the rear.
Meanwhile, cyclical shares enjoyed the biggest gains.
"It speaks to how many investors have been trained to buy
the dip," said Robert Pavlik, senior portfolio manager at Dakota
Wealth in Fairfield, Connecticut. "And they're taking the Fed at
face value that they're not going to raise rates anytime soon
and inflation pressures are transitory."
Recent economic data has prompted inflation fears as
scarcity of both materials and workers threatens to send prices
surging in the face of a demand boom.
But on Thursday, investors appeared to be focusing on the
glass-half-full side of the demand/supply equation.
This was evidenced by the outperformance of small caps
.RUT , chips .SOX and transports .DJT , economically
sensitive stocks that stand to gain as the United States emerges
from the pandemic recession.
"The economy is going to continue to reopen so things like
transports, industrials and financials are going to feel the
effects of the reopening first," Pavlik added.
New applications for unemployment insurance continue to
fall, according to jobless claims data from the Labor Department
that hit a 14-month low. Further data from the Labor Department showed producer
prices surged last month, building on the inflation surge
narrative of Wednesday's consumer prices report.
But rising prices were widely anticipated, and the U.S.
Federal Reserve has repeatedly stated that it does not foresee
those spikes morphing into sustained, long-term inflation.
The Dow Jones Industrial Average .DJI rose 462.08 points,
or 1.38%, to 34,049.74, the S&P 500 .SPX gained 51.43 points,
or 1.27%, to 4,114.47 and the Nasdaq Composite .IXIC added
91.14 points, or 0.7%, to 13,122.82.
Of the 11 major sectors in the S&P 500, 10 were green, with
technology shares .SPLRCT once again enjoying the largest
percentage gain.
Energy stocks .SPNY , weighed by a drop in crude prices
CLc1 was the sole loser.
Dating app owner Bumble Inc BMBL.O tumbled 15.5%, falling
below its initial public offering price, as investors remained
cautious about how quickly users will return to in-person
meetings. Shares of Walt Disney Co DIS.N shares were down 0.2% ahead
of its quarterly results expected after the closing bell.
Boeing Co BA.N was modestly higher after gaining approval
from U.S. regulators for a fix of an electrical grounding issue.
Tesla continued its slide, dropping 2.9% after boss Elon
Musk doubled down on his sudden rejection of cryptocurrency
bitcoin. Advancing issues outnumbered declining ones on the NYSE by a
1.74-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored decliners.
The S&P 500 posted nine new 52-week highs and no new lows;
the Nasdaq Composite recorded 31 new highs and 180 new lows.

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