* Indexes up: Dow 1.07%, S&P 1.29%, Nasdaq 1.41%
* Apple provides biggest boost to three main indexes
* U.S. extends reprieve given to Huawei
* Estee Lauder (NYSE:EL) jumps after full-year forecast raised
(Updates to late afternoon, changes byline, adds NEW YORK to
dateline)
By April Joyner
NEW YORK, Aug 19 (Reuters) - U.S. stocks climbed on Monday
as reports of stimulus efforts in China and Germany calmed fears
of a severe downturn in the global economy that were stoked last
week as bond yields fell.
The benchmark S&P 500 was on track to recover most of its
losses following Wednesday's brief inversion of the yield curve
between 2-year and 10-year Treasuries, commonly viewed as an
indicator of a recession within the next two years. After
falling nearly 3% on Wednesday, the S&P 500 has risen for the
last three sessions.
China's central bank unveiled a key interest rate reform on
Saturday to help steer borrowing costs lower for companies. On
Sunday, German Finance Minister Olaf Scholz suggested that
Berlin could make available up to 50 billion euros ($55 billion)
of extra spending. "Those are positive stories, and it's fostered a risk-on
environment that has persisted throughout the day," said Michael
O'Rourke, chief market strategist at JonesTrading in Greenwich,
Connecticut. "Investors are glad to see that countries are
recognizing the risks out there."
Shares of Apple Inc AAPL.O provided the biggest boost to
the three main Wall Street indexes. President Donald Trump said
on Sunday that he had spoken with Apple Chief Executive Officer
Tim Cook, who "made a good case" that tariffs could hurt
Apple. Technology shares also rose as Washington extended a
reprieve given to Huawei Technologies HWT.UL that permits the
Chinese firm to buy supplies from U.S. companies so it can
service existing customers. The S&P 500 technology index rose 1.5%, while the
Philadelphia semiconductor index .SOX rose 1.8%.
The Dow Jones Industrial Average .DJI rose 266.72 points,
or 1.03%, to 26,152.73, the S&P 500 .SPX gained 36.54 points,
or 1.26%, to 2,925.22 and the Nasdaq Composite .IXIC added
109.85 points, or 1.39%, to 8,005.84.
All of the 11 major S&P sectors were higher. Energy shares
.SPNY , which rose 2.3% as oil prices advanced, led S&P sectors
in percentage gains. Reflecting Monday's risk-on sentiment, the
defensive real estate .SPLRCR and utilities .SPLRCU sectors
posted the smallest percentage gains.
Given concerns about economic growth, investors have looked
closely for cues from the Federal Reserve on monetary policy. In
July, the U.S. central bank cut interest rates for the first
time in more than a decade.
Wednesday's release of minutes from the Fed's July policy
meeting, as well as Chair Jerome Powell's speech at the Jackson
Hole symposium on Friday, might provide indications on whether
the central bank will cut rates further, investors said.
Shares of Estee Lauder Cos Inc EL.N jumped 12.4% to a
record high as the beauty company forecast full-year revenue and
profit above estimates, bolstered by booming demand for its
premium skincare products in the Asia-Pacific region.
Advancing issues outnumbered declining ones on the NYSE by a
2.91-to-1 ratio; on Nasdaq, a 2.71-to-1 ratio favored advancers.
The S&P 500 posted 53 new 52-week highs and one new low; the
Nasdaq Composite recorded 74 new highs and 52 new lows.