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Spotify ( SPOT ) jumps after results

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NXP Semiconductors ( NXPI ) weighs on chip stocks

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Coca-Cola rises after lifting annual forecasts

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GM beats Q2 expectations, raises forecast; shares dive

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Indexes up: Dow 0.23%, S&P 0.32%, Nasdaq 0.55%

(Updated at 11:48 a.m. ET/1548 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

July 23 (Reuters) -

Wall Street's main indexes rose on a boost from megacaps

ahead of Alphabet and Tesla earnings on Tuesday, as investors

assessed if the recent rally had fuel enough to sustain the

charge, while United Parcel Service ( UPS ) hit a nearly four-year low

on weak results.

Apple ( AAPL ), Microsoft ( MSFT ), Meta Platforms ( META )

and Amazon.com ( AMZN ) rose between 1% and 3.3%.

Tesla and Alphabet are set to kick

off results from the so-called Magnificent Seven stocks after

markets close. While the Google parent's shares were up 0.7%,

the EV maker's dropped 1%.

The S&P 500 Information Technology and

Consumer Discretionary indexes were the top sectoral

gainers.

Earnings from technology giants will be key in

determining if 2024's record rally can be sustained, or if U.S.

stocks are overvalued. The question of whether a rotation away

from megacaps in favor of underperforming sectors will continue

is also on investors' minds.

The small-cap Russell 2000 was up 1% on the day.

"You're looking at a scenario where (Big Tech) names are

going to determine the direction of the market... So, if those

names disappoint in any way whatsoever, markets will struggle,"

said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

"Their valuations are expensive and we could run into a

problem if they don't meet expectations."

Meanwhile, United Parcel Service ( UPS ), seen as a

bellwether for the global economy, slumped 13.2% after missing

earnings estimates on subdued package delivery demand and higher

labor-contract costs, pulling the Dow Jones Transport Average

index down by 1.2%.

NXP Semiconductors ( NXPI ) slumped 9.1% after forecasting

third-quarter revenue below estimates, dragging the Philadelphia

SE Semiconductor index lower nearly 1%.

Among others, Spotify ( SPOT ) jumped 12.2% after

posting a record quarterly profit slightly ahead of

expectations, while General Motors ( GM ) dropped 6.8% despite a

second-quarter results beat and a higher annual profit forecast.

Coca-Cola

rose 1% after it increased its annual sales and

profit forecasts, while Comcast ( CMCSA ) lost 4.3% after

missing revenue estimates.

Of the 74 S&P 500 companies that have reported quarterly

results during this earnings season, 81.1% have beaten

expectations, according to LSEG data available on Monday.

At 11:48 a.m. ET, the Dow Jones Industrial Average

was up 92.76 points, or 0.23%, at 40,508.20, the S&P 500

was up 17.78 points, or 0.32%, at 5,582.19, and the Nasdaq

Composite was up 99.34 points, or 0.55%, at 18,106.91.

Economic data due to release this week includes the

Personal Consumption Expenditures Price Index, the Fed's

preferred inflation gauge, which will be crucial in gauging the

monetary policy outlook against a backdrop of the recent

inflation downtrend and signs the labor market is easing.

Bets of a 25-basis-point interest-rate cut by September

have shot up to nearly 94%, from nearly 60% last month,

according to CME's FedWatch Tool.

A

Reuters poll

showed the Fed is expected to cut rates twice this year, in

September and December. The central bank's policymakers have

said that resilient consumer demand warrants a cautious

approach, despite easing inflation.

Advancing issues outnumbered decliners by a 1.27-to-1 ratio

on the NYSE, and by a 1.51-to-1 ratio on the Nasdaq.

The S&P index recorded 40 new 52-week highs and one new low,

while the Nasdaq recorded 178 new highs and 61 new lows.