US STOCKS-Wall St gains on strong services sector data, China-led recovery hopes

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* ISM non-manufacturing index jumps to highest since
February
* Uber jumps on deal to buy food-delivery app Postmates
* Tesla climbs as JPM hikes price target
* Indexes up: Dow 1.42%, S&P 1.54%, Nasdaq 2.32%

(Adds details, quote; updates prices)
By Medha Singh and C Nivedita
July 6 (Reuters) - Wall Street's major indexes climbed on
Monday as data showing unexpected growth in the U.S. services
sector last month and optimism over China's economic revival
helped investors look past a surge in new cases of COVID-19 at
home.
The ISM's non-manufacturing activity index jumped to 57.1 in
June, almost returning to pre-pandemic levels, but a recent
surge in COVID-19 cases in the United States has threatened the
emerging recovery. During Asian hours, Chinese stocks jumped more than 5% on
ample liquidity, cheap funding and expectations of a faster and
a better bounce-back in business activity than other major
countries that are still battling the coronavirus crisis. .SS
A slew of upbeat U.S. data, including a record rise in June
payrolls, has powered the Nasdaq .IXIC to all-time highs and
brought the S&P 500 .SPX and the Dow .DJI about 6% and 11%
below their respective peaks from February.
"Investors are more focused on what the other side of this
pandemic looks like, as opposed to the short-term risks of
shutdowns," said Matt Lindholm, managing director - investment
strategies at CAZ Investments in Houston.
A sharp jump in COVID-19 cases recently in the United States
has cast a shadow over the strong rally in stocks as many states
have curtailed their reopening plans, threatening to derail the
economic recovery.
During the Independence Day weekend, several states reported
a record increase in new infections, with Florida surpassing the
highest daily tally reported by any European country during the
peak of the outbreak. "July is going to be critical in making sure the virus can
be contained and in a way that the economic recovery can
continue and if Democrats or Republicans get together to
continue to supply a type of fiscal stimulus that can continue
to support the economy," said Keith Buchanan, senior portfolio
manager at GlobAlt Investments in Atlanta.
At 11:09 a.m. ET, the Dow Jones Industrial Average .DJI
was up 366.02 points, or 1.42%, at 26,193.38, the S&P 500 .SPX
was up 48.09 points, or 1.54%, at 3,178.10. The Nasdaq Composite
.IXIC was up 236.36 points, or 2.32%, at 10,443.99.
Ten of the 11 major S&P sectors were trading higher, with
technology .SPLRCT providing the biggest boost to the
benchmark S&P 500.
Among individual shares, Tesla Inc TSLA.O surged 9%,
rising for the fifth session as JPMorgan bumped up its price
target for the electric carmaker's stock following
better-than-expected quarterly deliveries.
Uber Technologies Inc UBER.N climbed 5.4% after the
ride-sharing company agreed to buy food-delivery app Postmates
Inc in a $2.65-billion all-stock deal. Dominion Energy Inc D.N and Duke Energy Corp DUK.N fell
7.5% and 2.5%, respectively, after the energy firms abandoned
the $8-billion Atlantic Coast Pipeline project after a long
delay to clear legal roadblocks almost doubled its estimated
cost. Advancing issues outnumbered decliners by a 3.21-to-1 ratio
on the NYSE and by a 2.51-to-1 ratio on the Nasdaq.
The S&P index recorded 36 new 52-week highs and no new low,
while the Nasdaq recorded 133 new highs and nine new lows.