US STOCKS-Wonderful world of Disney boosts Wall St

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* U.S. services sector activity hits 16-month high in July
* Biggest daily pct gain for Disney since late March
* Energy stocks gain as oil prices jump

(New throughout, updates prices, market activity and comments
to market close)
By Chuck Mikolajczak
NEW YORK, Aug 5 (Reuters) - U.S. stocks climbed on Wednesday
on the heels of a surprise quarterly profit from Disney and as
investors stayed optimistic that a deal was near for a U.S.
coronavirus fiscal aid package.
Walt Disney Co's DIS.N shares jumped, to put it among the
biggest boosts to the S&P 500 and Dow. The stock notched its
biggest daily percentage gain since March 24 as revenue declines
for Disney parks and media networks were not as bad as feared.
"That is helping the Dow and that has been a laggard versus
the S&P this year, but it is more than that," said Willie
Delwiche, investment strategist at Baird in Milwaukee. "At a
time when everyone is talking about how big and how important
these megacaps are to the S&P, kind of quietly you are starting
to see a little bit of a leadership rotation."
Unofficially, the Dow Jones Industrial Average .DJI rose
373.71 points, or 1.39%, to 27,202.18, the S&P 500 .SPX gained
21.52 points, or 0.65%, to 3,328.03 and the Nasdaq Composite
.IXIC added 58.22 points, or 0.53%, to 10,999.39.
Square Inc SQ.N surged after the payments processor
reported a 64% rise in second-quarter revenue, as consumers
increased online buying and used its peer-to-peer Cash App
platform during the pandemic. As quarterly results have come in better-than-feared and
heavyweight technology and technology-related companies have
surged, a heavy dose of fiscal and monetary stimulus have helped
fuel a rally in equities to bring the S&P 500 to less than 2%
from its closing record on Feb. 19.
With 384 companies in the S&P having reported earnings
through Wednesday morning, results are coming in 23.5% above
expectations, in aggregate, according to Refinitiv data, the
highest on record back to 1994.
Economic data painted a mixed picture, as U.S. services
industry activity gained momentum in July, according to an ISM
survey, with new orders jumping to a record high. However,
hiring declined, supporting views that a recovery in the labor
market was faltering.
Earlier, the ADP National Employment Report, which can be an
inconsistent precursor to the government payrolls report set for
Friday, showed U.S. private employers hired far fewer workers
than expected last month. "We know we had this tremendous rebound off the lows but
what we need now is sustained strength," said Delwiche.
U.S. Congressional Democrats and White House officials were
set to resume negotiations on coronavirus relief legislation on
Wednesday, with administration officials aiming for an agreement
by Friday. Financials .SPSY , industrials .SPLRCI and materials
.SPLRCM , that track economic growth, outperformed among the
major S&P sectors.
Teladoc Health Inc TDOC.N fell after agreeing to buy
chronic care provider Livongo Health Inc LVGO.O in a deal
valuing the company at $18.5 billion, betting on a boom in
online care and consultations spurred by the coronavirus crisis.
Livongo shares also fell. Electric truck maker Nikola Corp NKLA.O slumped after it
reported a bigger quarterly loss in its first results as a
listed entity.