* Dow hits record intraday high
* Apple, Microsoft, Alphabet recover
* Amazon drives consumer discretionary stocks
* Indexes up: Dow 0.4 pct, S&P 0.35 pct, Nasdaq 0.6 pct
(Updates to early afternoon)
By Sruthi Shankar
June 13 U.S. stocks rose on Tuesday, with the
Dow hitting an all-time high as bank and technology shares
The S&P 500 technology sector rose 0.71 percent,
recovering from its biggest two-day decline in nearly a year on
Monday, and topped the list of gainers among the 11 major S&P
Shares of Microsoft, Alphabet and Apple
, which were hit hard by the rout, powered the
technology index on Tuesday.
"The selloff in tech probably was a bit further than people
expected, so there is some bargain hunting back into that
sector," said Rick Meckler, president of LibertyView Capital
"I think the sector rotation could go on for a while."
Investors are also likely to stay away from making big bets
ahead of a near-certain interest rate hike from the Federal
Traders have priced in a 94 percent chance of the Fed
raising rates after its two-day meeting that starts on Tuesday.
Investors are also looking for more details on the central
bank's plans to trim its $4.5 trillion balance sheet.
The Fed is expected to release its decision at 2:00 p.m. ET
(1800 GMT) on Wednesday followed by a press conference by Fed
Chair Janet Yellen.
At 12:41 p.m. ET (1641 GMT), the Dow was up 84.08
points, or 0.4 percent, at 21,319.75, the S&P 500 was up
8.55 points, or 0.35 percent, at 2,437.94 and the Nasdaq
Composite was up 37.33 points, or 0.6 percent, at
Six of the 11 major S&P sectors were higher, while defensive
plays like utilities, telecom services and
consumer staples were lower.
Financials rose 0.51 percent, helped by gains in big
banks after the U.S. Treasury Department announced a plan to
make sweeping changes to banking regulations on Monday.
The department proposed to reduce trading restrictions that
the banks face, ease their annual stress tests, and curb the
powers of the Consumer Financial Protection Bureau (CFPB).
"I think investors are unsure of real regulatory changes but
this is enough talk to keep them interested," Meckler said.
Amazon.com rose 0.7 percent, after recording losses
for the past two days, and gave the biggest boost to the
consumer discretionary index.
Restaurant chain operator Cheesecake Factory was
down nearly 10 percent at $52.61 after it warned of a decline in
comparable store sales in the current quarter.
Tesla was up 2.5 percent at $368.17 after Berenberg
raised its rating on the stock to "buy" from "hold".
Advancing issues outnumbered decliners on the NYSE by 1,847
to 993. On the Nasdaq, 1,731 issues rose and 1,060 fell.
(Reporting by Sruthi Shankar; Additional reporting by
Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)