US STOCKS-S&P, Nasdaq close higher on vaccine hopes, improving data

* Early positive results for Pfizer, BioNTech vaccine
candidate
* U.S. marks record single-day spike in virus cases
* FedEx jumps on quarterly profit, revenue beat

(Updates to market close)
By Chuck Mikolajczak
NEW YORK, July 1 (Reuters) - U.S. stocks closed higher on
Wednesday to kick off the third quarter as increasing optimism
for a safe and effective COVID-19 vaccine eased concerns that
another round of business lockdowns was likely despite a climb
in coronavirus cases in the United States.
Pfizer Inc's PFE.N shares rose more than 4% after the
drugmaker said a COVID-19 vaccine being developed with German
biotech firm BioNTech BNTX.O showed promise and was found to
be well-tolerated in early-stage human trials. The gains put Pfizer among the top boosts to both the S&P
500 and Dow Industrials while U.S.-listed shares of BioNTech
gained about 5%, helping improve the mood on Wall Street even as
the U.S. Centers for Disease Control and Prevention reported an
increase of 43,644 new cases of coronavirus. "Pfizer news was certainly an impetus for the market to move
even higher but in general it is this very positive momentum,
looking beyond this re-spreading of the virus, looking beyond
that to eventual treatments, eventual vaccine and eventual safe
openings of the economy," said Tim Ghriskey, chief investment
strategist at Inverness Counsel in New York.
Investors were also encouraged by some upbeat economic data
as coronavirus-induced lockdowns have eased. A report on
Wednesday showed a slump in global manufacturing had ebbed in
June, with U.S. figures hitting their highest level in more than
a year. On Thursday, all eyes will be on the Labor Department's
nonfarm payrolls report.
Unofficially, the Dow Jones Industrial Average .DJI fell
77.43 points, or 0.3%, to 25,735.45, the S&P 500 .SPX gained
15.64 points, or 0.50%, to 3,115.93 and the Nasdaq Composite
.IXIC added 95.86 points, or 0.95%, to 10,154.63.
Gains were held in check on the Dow in part by a fall in
Boeing Co BA.N shares, which lost ground for a second straight
day following a 14% surge on Monday.
Updates on the progress in various COVID-19 vaccine programs
are being closely watched by investors, and have been partly
responsible for Wall Street's recent rally.
The S&P 500 .SPX closed its best quarter since 1998 on
Tuesday, fueled also by unprecedented levels of fiscal and
monetary stimulus. Minutes from the Federal Reserve's June
policy meeting showed policymakers broadly agreed to make full
use of the tools at the central bank's disposal to support a
recovery from the recession triggered by the coronavirus
pandemic. The Institute for Supply Management (ISM) said its index of
national factory activity jumped to a reading of 52.6 last month
from 43.1 in May, ending three straight months of contraction,
or readings below 50.
The ADP National Employment Report on Wednesday showed U.S.
private payrolls increased by 2.369 million jobs, but still less
than expected in June.
FedEx Corp FDX.N jumped after posting better-than-expected
quarterly profit and revenue, helped by a surge in
pandemic-fueled home deliveries. [nL1N2E72SZ