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* Non-manufacturing activity data due at 10 a.m. ET
* PayPal rises after bumping annual profit outlook
* Airbnb dips after bookings disappoint
* Indexes up: Dow 0.77%, S&P 0.83%, Nasdaq 1.24%
Aug 3 (Reuters) - U.S. stock indexes rose on Wednesday on
strong results from PayPal and CVS Health, with investors
awaiting services activity data for clues on the health of the
economy struggling with soaring inflation and tightening
Shares of PayPal Holdings jumped 11.6% after the
fintech company raised its annual profit guidance and said
activist investor Elliott Management has an over $2 billion
CVS Health Corp gained 4.7% as the largest U.S.
pharmacy chain raised its annual profit forecast after posting
strong quarterly results.
A largely upbeat second-quarter earnings season has helped
markets bounce back in a year roiled by the Ukraine war, fears
of a looming recession and an aggressive rise in borrowing
The benchmark S&P 500 index and tech-heavy Nasdaq
are up 13.3% and 18.2%, respectively, from the lows hit
The Institute of Supply Management's data, due at 10 a.m.
ET, is expected to show non-manufacturing activity slipped to
53.5 last month from 55.3 in June, the fourth straight monthly
decline. The services sector accounts for more than two-thirds
of U.S. economic activity.
"What we want is Goldilocks number, big numbers right now
are bad, whether they're big and good, or big and bad. What we
actually want is pretty small increases or small decreases,"
said Jason Blackwell, chief investment strategist at The Colony
"That tells us that the Fed is working, (but) not too hard
(to) take us into a deeper recession."
Meanwhile, St. Louis Federal Reserve President James Bullard
said on Wednesday the U.S. central bank will be steadfast in
raising interest rates to bring inflation running at four-decade
highs back to its 2% target.
Wall Street started August on a sour note as factory
activity in the United States, China and Eurozone weakened in
At 9:40 a.m. ET, the Dow Jones Industrial Average was
up 250.32 points, or 0.77%, at 32,646.49, the S&P 500 was
up 34.03 points, or 0.83%, at 4,125.22, and the Nasdaq Composite
was up 152.62 points, or 1.24%, at 12,501.38.
Moderna Inc climbed 8.7% after the vaccine maker
announced a $3 billion share buyback plan.
Regeneron Pharmaceuticals added 5.3% after it beat
quarterly revenue estimates, while coffee chain Starbucks Corp
rose 1% on upbeat quarterly profit.
Advanced Micro Devices Inc fell 2.3% after the chip
designer forecast downbeat third-quarter revenue.
Advancing issues outnumbered decliners by a 2.71-to-1 ratio
on the NYSE and by a 2.62-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week highs and 30 new
lows, while the Nasdaq recorded 27 new highs and 10 new lows.
(Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru;
Editing by Sriraj Kalluvila)