US STOCKS-Wall Street rises as megacap stocks bounce; Dow hits record high

* Boeing falls after 737 MAX electrical grounding issue
* U.S. private payrolls increase solidly in April - ADP
* Energy, materials lead sectoral gains on S&P 500
* Indexes up: Dow 0.46%, S&P 0.54%, Nasdaq 0.63%

(Adds comments, updates prices to early afternoon)
By Shreyashi Sanyal and Sruthi Shankar
May 5 (Reuters) - Wall Street's main indexes and the Dow hit
a record high on Wednesday, as growth stocks bounced from a
steep selloff in the previous session and a survey showed
private jobs rose in April.
Technology-related companies including Apple Inc AAPL.O ,
Microsoft Corp MSFT.O , Amazon.com Inc AMZN.O , Facebook Inc
FB.O and Alphabet Inc GOOGL.O rose between 0.1% and 1.7%.
The S&P 500 technology sector .SPLRCT gained 0.9%, while
the Philadelphia SE Semiconductor index .SOX added 1.8%.
"With stock indexes at or near record highs and coming off a
massive rally in the past year, there's a counterintuitive
reaction function to the positive earnings reports to sell the
news," Art Hogan, chief market strategist at National Securities
in New York, wrote in a client note.
"We would continue to recommend a diversified equity
allocation with a barbell approach that has growth exposure on
one end, and economically sensitive cyclical exposure on the
other end."
Six of the 11 major S&P 500 sectors rose in early afternoon
trading, with commodity-sensitive sectors including energy
.SPNY and materials .SPLRCM rising 3.5% and 1.3%,
respectively.
Defensive utilities .SPLRCU fell 2.2% and real estate
.SPLRCR dropped 1.3%, leading sectoral declines.
The ADP National Employment Report showed U.S. private
payrolls increased in April as companies rushed to boost
production amid a surge in demand, powered by massive government
aid and rising vaccinations against COVID-19. A more comprehensive reading in the form of the Labor
Department's non-farm payrolls data is due on Friday.
Strong economic data and earnings pushed the S&P 500 .SPX
and Nasdaq .IXIC indexes to record high last week, but markets
have wobbled amid concerns about rising inflation and
potentially higher U.S. interest rates.
"Once you have markets hitting the highs we have seen
recently, the one thing investors are worried about is rising
inflation and what that means for profitability of companies,"
said Shawn Cruz, senior market strategist at TD Ameritrade.
At 12:10 p.m. ET, the Dow Jones Industrial Average .DJI
was up 155.88 points, or 0.46%, at 34,288.91, the S&P 500 .SPX
was up 22.33 points, or 0.54%, at 4,186.99 and the Nasdaq
Composite .IXIC was up 85.27 points, or 0.63%, at 13,718.77.
Boeing Co BA.N fell 1.6% after U.S. air safety officials
asked it to supply fresh analysis and documentation showing 737
MAX subsystems would not be affected by electrical grounding
issues. T-Mobile US Inc TMUS.O jumped 4.7% as it raised its
full-year postpaid subscriber net additions forecast.
Uber Technologies Inc UBER.N is set to report earnings
after markets close on Wednesday.
Advancing issues outnumbered decliners by a 1.58-to-1 ratio
on the NYSE and by a 1.29-to-1 ratio on the Nasdaq.
The S&P index recorded 97 new 52-week highs and no new low,
while the Nasdaq recorded 101 new highs and 40 new lows.