US STOCKS-Wall Street rises after trade-driven selloff

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* Trump says U.S. doing well in trade talks with China
* Dollar General jumps after Q1 profit beat
* Citigroup gains after Goldman upgrades to 'buy'
* Futures up: Dow 0.30%, S&P 0.44%, Nasdaq 0.44%

(Updates to open)
By Amy Caren Daniel
May 30 (Reuters) - U.S. stocks rose for the first time this
week on Thursday, as President Donald Trump said trade talks
with China are doing well, offering a glimmer of hope to markets
roiled by trade tensions.
A senior Chinese diplomat said that provoking trade disputes
is "naked economic terrorism", even as Trump said Beijing wanted
to make a deal with Washington. The escalating trade war has weighed heavily on Wall Street,
putting its main indexes on track for a monthly loss of more
than 5% in May. The benchmark S&P 500 .SPX is now 5.7% away
from its all-time high of 2954.13 hit on May 1.
"People are trying to figure out how much of the bad news is
already priced in. The trade war looks like it might dampen
growth but not enough to throw us into a recession," said Scott
Brown, chief economist at Raymond James in St. Petersburg,
Florida.
"There has been talk about the Fed possibly cutting rates
and that is a little bit positive for the stock market."
Despite a tick up in U.S. treasury yields on Thursday, they
were still at 20-month lows as investors sought safety in
government bonds.
The yield curve between three-month bills and 10-year notes
also remained inverted and money markets were pricing in roughly
two U.S. rate cuts by the start of next year. US/
The technology sector .SPLRCT , among the worst performing
S&P sectors this month, rose 0.60%, and provided the biggest
boost to markets.
The sector was helped by a 11% jump in shares of Keysight
Technologies KEYS.N after the electronic measurement equipment
maker's quarterly results topped estimates and the company
announced a $500 million share buyback program.
Apple Inc AAPL.O , Microsoft Corp MSFT.O and Intel Corp
INTC.O rose between 0.3% and 1.3%, supporting the markets.
At 9:42 a.m. ET the Dow Jones Industrial Average .DJI was
up 74.96 points, or 0.30%, at 25,201.37. The S&P 500 .SPX was
up 12.02 points, or 0.43%, at 2,795.04 and the Nasdaq Composite
.IXIC was up 32.96 points, or 0.44%, at 7,580.27.
Nine of the 11 major S&P sectors were trading higher, with
only the energy .SPNY and communication services .SPLRCR
sectors in the red.
Adding to the upbeat mood, the government confirmed domestic
economic growth accelerated in the first quarter, but there are
signs that the temporary boost from exports and inventory
accumulation is already fading, and production at factories
slowing. Among other stocks, Citigroup Inc C.N rose 1.4% after
Goldman Sachs raised the bank's shares to "buy", as it expects
the lender to achieve a higher return on equity in 2020.
Discount retailer Dollar General Corp DG.N jumped 6.2%
after the company reported quarterly same-store sales and profit
above expectations.
PVH Corp PVH.N tumbled 12.1%, the most among S&P
companies, after the Calvin Klein owner cut its annual profit
forecast as it grapples with tariffs and slowing retail growth.

Advancing issues outnumbered decliners by a 3.25-to-1 ratio
on the NYSE and by a 2.48-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and six new lows,
while the Nasdaq recorded eight new highs and 26 new lows.