US STOCKS-Dow hits record as energy, bank stocks gain


* Tesla higher after Model 3 gets approval for production

* EQT rises after Jana Partners discloses 5.8 pct stake

* ISM factory activity index for June rises to 57.8 vs. est.
55.2

* Dow up 0.86 pct, S&P up 0.55 pct, Nasdaq down 0.32 pct
(Adds details, changes comment, updates prices)

By Tanya Agrawal

July 3 (Reuters) – The Dow Jones Industrial Average hit a
record high in late morning trading on Monday as energy and bank
stocks gained, but a fall in tech stocks dragged down the
Nasdaq.

Goldman Sachs and Chevron gave the biggest
boost to the Dow, while JPMorgan and Exxon
helped lift the broader S&P 500 index.

Nine of the 11 major S&P sectors were higher, topped by the
energy index’s 1.38 percent rise.

Oil resumed its longest stretch of daily rallies in more
than five years after data pointed to moderating U.S. output,
pushing energy names higher.

However, a fall in Facebook, Comcast and
Nvidia weighed on the tech-heavy Nasdaq.

Trading volume is expected to be light on Monday, with the
U.S. market closing early at 1 p.m. ET (1700 GMT). It will be
shut on Tuesday for Independence Day.

At 11:09 a.m. ET, the Dow Jones Industrial Average
was up 183.19 points, or 0.86 percent, at 21,532.82, slightly
easing from its all-time high of 21548.84.

The S&P 500 was up 13.37 points, or 0.55 percent, at
2,436.78 but the Nasdaq Composite index was down 19.58
points, or 0.32 percent, at 6,120.85.

Helping sentiment was data that showed U.S. factory activity
jumped in June, suggesting economic growth in the second quarter
gained some steam, while construction spending held steady in
May.

The Institute for Supply Management said its index of
national factory activity rose to a reading of 57.8 last month
from 54.9 in May.

“Manufacturing PMI’s are a good gauge of economic growth and
have risen materially in the last year,” said Jason Pride,
director of investment strategy at Glenmede.

“Coupled with the ambitious balance sheet reduction plan,
monetary policy tightening could prove a larger headwind than
anticipated. Normalizing monetary policy is a good thing, but
the Fed should be careful of the pace.”

Tesla rose 2.3 percent after the luxury
electric-car maker said it would deliver its mass-market Model 3
sedan to first 30 customers on July 28.

EQT Corp rose 2 percent after activist investor Jana
Partners disclosed a 5.8 percent stake in the company and urged
it to abandon its proposed acquisition of Rice Energy.
Rice fell 4.4 percent.

Advancing issues outnumbered decliners on the NYSE by 2,055
to 741. On the Nasdaq, 1,504 issues rose and 1,197 fell.
(Reporting by Tanya Agrawal; Editing by Anil D’Silva)

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