Tuesday's early afternoon trade: Bounce back in trade-sensitive chipmakers pushed stocks up

A bounce back in trade-sensitive chipmakers pushed US stocks higher on Tuesday, after Washington cut off a Chinese semiconductor maker from its US suppliers. The Commerce Department slapped the restriction on Fujian Jinhua Integrated Circuit Co Ltd amid allegations the firm stole intellectual property from Micron Technology Inc and on concerns the firm could flood the market with cheap chips.
Micron rose 1.9 percent, and helped the Philadelphia Semiconductor Index jump 2.63 percent, rebounding after hitting its lowest in over a year on Monday. The broader technology sector was up 0.18 percent. Chip-gear makers also gained after KLA-Tencor Corp rose 6.6 percent on strong quarterly results and forecast, helped by strength in its memory business.
"There are investors who have wanted to own chipmakers but have been so fearful because of what happened last week," said Peter Kenny, senior market strategist at Global Markets Advisory Group, in New York. Industrial stocks rose 0.85 percent, getting a boost after President Donald Trump said "a great deal" on trade can be struck with China.
But he also warned that billions of dollars worth of new tariffs are ready if a deal isn't possible. That echoed the essence of a Bloomberg report on Monday that sent Wall Street tumbling at close. At 12:56 p.m. ET, the Dow Jones Industrial Average was up 151.25 points, or 0.62 percent, at 24,594.17, the S&P 500 was up 15.31 points, or 0.58 percent, at 2,656.56. The Nasdaq Composite was up 51.82 points, or 0.73 percent, at 7,102.11.
On the earnings front, Coca-Cola Co shares climbed 1.8 percent after beating quarterly sales estimates, while rival PepsiCo Inc dipped 0.1 percent. Nike Inc rose 2.5 percent. Facebook Inc was up 0.5 percent, ahead of its quarterly earnings report, which is due after the market closes.