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* Indexes up: Dow 1.01%, S&P 1.19%, Nasdaq 1.43%
* Apple provides biggest boost to three main indexes
* U.S. extends a reprieve given to Huawei
* Estee Lauder (NYSE:EL) jumps after FY forecast raise
(Changes comment, adds details, updates prices)
By Medha Singh
Aug 19 (Reuters) - U.S. stocks surged on Monday, building on
previous session's rally, fueled by growing hopes that major
economies would act to prop up slowing growth, while technology
stocks got a lift from trade optimism.
China's central bank unveiled a key interest rate reform on
Saturday to help steer borrowing costs lower for companies,
close on the heels of reports of a potential German economic
easing. After the three main Wall Street indexes racked up their
third straight weekly loss despite Friday's bounce, investors
will look to weigh trade risks and signs of slowing growth
against the potential for more action from the U.S. Federal
Reserve and others in September.
The focus this week will be on Wednesday's release of
minutes from the Fed's July policy meeting, when the central
bank cut rates for the first time in more than a decade, and
Chair Jerome Powell's speech at a central banks meeting in
Jackson Hole on Friday.
"There is hope you are going to see some sort of stimulus by
the United States ... Some believe the selloff recently was a
bit overdone," said Scott Brown, chief economist at Raymond
James in St. Petersburg, Florida.
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 Tim Cook
about the impact of U.S. tariffs. "There is a recognition that this trade policy is having a
negative impact on the economy. With the election coming up next
year, there maybe an incentive to get these trade issues behind.
Trump does seem to listen if the voices are loud enough," Brown
said.
Adding to the optimism around trade, Washington extended a
reprieve given to Huawei Technologies HWT.UL that permits the
Chinese firm to buy supplies from U.S. companies. Tariff-sensitive chipmakers gained with the Philadelphia
chip index .SOX up 2.06%.
At 11:06 a.m. ET, the Dow Jones Industrial Average .DJI
was up 260.43 points, or 1.01%, at 26,146.44, the S&P 500 .SPX
was up 34.36 points, or 1.19%, at 2,923.04. The Nasdaq Composite
.IXIC was up 112.95 points, or 1.43%, at 8,008.95.
All of the 11 major S&P sectors were higher with a 1.7% rise
in energy sector .SPNY leading the gainers. Defensive consumer
staples .SPLRCS , utilities .SPLRCU and real estate .SPLRCR
posted the smallest gains.
Estee Lauder Cos Inc EL.N jumped 8.6% as it forecast
full-year revenue and profit above estimates, bolstered by
booming demand for its premium skincare products and strength in
its Asia-Pacific business. Advancing issues outnumbered decliners by a 3.68-to-1 ratio
on the NYSE and by a 3.24-to-1 ratio on the Nasdaq.
The S&P index recorded 45 new 52-week highs and no new low,
while the Nasdaq recorded 60 new highs and 34 new lows.