US STOCKS-Wall Street jumps as battered energy shares rise, lockdowns ease

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* Energy shares rise as oil prices gain
* Apple supplier Skyworks gains on upbeat Q2 results
* U.S. service sector activity contracts in April-ISM
* Indexes up: Dow 1.56%, S&P 500 1.60%, Nasdaq 1.85%

(Adds comments, updates prices)
By Medha Singh and Shreyashi Sanyal
May 5 (Reuters) - Wall Street's main indexes jumped on
Tuesday as a recovery in oil prices lifted battered energy
stocks and a slew of countries eased coronavirus-induced
restrictions in an attempt to revive their economies.
Some hard-hit countries, including Italy, as well as a
handful of U.S. states are tentatively easing stay-at-home
orders this week, raising hopes for a recovery in oil demand.
All the major S&P 500 sub-indexes were trading higher, with
the energy sector .SPNY rising 2.3%, but the index is still
the top loser across sectors with a 35% decline this year.
Market-leading growth stocks such as Microsoft Corp
MSFT.O , Amazon.com Inc AMZN.O and Apple Inc AAPL.O rose
for a second day, helping offset concerns about the latest
U.S.-China spat over the origin of the novel coronavirus.
The S&P 500 .SPX has climbed about 30% from its March lows
on the back of unprecedented stimulus measures and signs of a
plateau in new COVID-19 cases in many parts of the world.
"We are in the hope mode regarding the rebound that will
come once the economies reopen," said Jim McDonald, chief
investment strategist for Northern Trust in Chicago.
However, many market experts have warned the rally could be
tested amid a risk of another wave of virus infections and with
growing evidence of the damage to the economy and corporate
America.
Data on Tuesday showed the domestic services sector recorded
its first contraction in nearly 10-1/2-years, while the
Institute for Supply Management's (ISM) non-manufacturing index
showed a smaller-than-expected decline. All eyes will now be on the Labor Department's report of
monthly nonfarm payrolls due Friday.
"It's all about the mood swings and hopes of the economies
reopening. But the problem is this could change once we get to
see some of the hard numbers, especially the employment report,"
said Peter Cardillo, chief market economist at Spartan Capital
Securities in New York.
With more than half of the S&P 500 companies reporting so
far, first-quarter earnings are expected to have fallen 12.5%,
with analysts expecting an earnings recession by the second
quarter, according to Refinitiv data.
At 11:23 a.m. ET the Dow Jones Industrial Average .DJI was
up 370.42 points, or 1.56%, at 24,120.18, the S&P 500 .SPX was
up 45.55 points, or 1.60%, at 2,888.29 and the Nasdaq Composite
.IXIC was up 160.93 points, or 1.85%, at 8,871.65.
Apple supplier Skyworks Solutions Inc SWKS.O jumped 5.9%
after reporting upbeat quarterly results, but warned of a hit
from the pandemic in the current quarter.
Pfizer Inc PFE.N rose 3% after announcing that a venture
with its German partner had started delivering doses of its
experimental coronavirus vaccines for human testing in the
United States. Advancing issues outnumbered decliners by a 3.74-to-1 ratio
on the NYSE and by a similar ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and no new low,
while the Nasdaq recorded 38 new highs and four new lows.