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Manufacturing PMI weakens in June

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S&P 500 Banks index at one-month high

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Tesla up 7% ahead of Q2 delivery data

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Chewy drops despite Keith Gill's stake disclosure

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Indexes: Dow flat, S&P up 0.1%, Nasdaq up 0.57%

(Updated at 2:31 p.m. ET/1831 PM GMT)

By Ankika Biswas, Lisa Pauline Mattackal and Saeed Azhar

July 1 (Reuters) -

Megacap growth stocks led by Apple ( AAPL ) and Tesla lifted the

tech-heavy Nasdaq on Monday, while the Dow and the S&P 500 were

little changed in light pre-holiday trading as investors waited

for U.S. labor market data due later this week for clues about

the interest rate outlook.

Apple ( AAPL ), Microsoft ( MSFT ) and Amazon.com ( AMZN )

rose between 2.5% and 1.3%, and were the biggest boosts to the

Nasdaq.

Shares of automaker Tesla gained about 7% to

$212.2, hitting the highest in more than five months ahead of

second-quarter vehicle delivery data.

Wells Fargo added Tesla stock to its third-quarter

"Tactical Ideas list" even as it kept "underweight" rating and

expressed concerns of declining delivery growth, price cuts

risk.

Tesla was expected to deliver 438,019 vehicles for

April-June period, in the average forecast of 12 analysts polled

by LSEG. Seven of them have slashed their expectations in past

three months.

Shares of semiconductor maker Advanced Micro Devices ( AMD )

fell about 3% while Arm Holdings fell 2.7%, pulling the

Philadelphia SE Semiconductor index close to a one-week

low.

Real estate stocks, also seen as a bond proxy,

dropped almost 1% as U.S. Treasury yields jumped to multi-week

highs. But higher yields often boost bank profits so the S&P 500

banks index jumped to a more than one-month peak.

JP Morgan Chase shares were at an all-time high

after the biggest U.S. bank on Friday hiked its dividend to

$1.25 a share from $1.15. Its board also authorized $30 billion

in new share buybacks, effective July 1.

Trading volumes were thin, with the equity market set to

shut on Thursday for U.S. Independence Day, and that is expected

to continue all week.

Manufacturing PMI data from the Institute for Supply

Management showed manufacturing contracted for a third straight

month in June, while prices paid dropped to a six-month low in

an encouraging sign for the U.S. Federal Reserve's battle with

inflation.

"While manufacturing is contracting, the rest of the economy

is in decent shape ... the Fed wants the economy to keep running

in low gear near-term. They will see ongoing softness in

manufacturing as contributing to their goal of less inflation,"

Bill Adams, chief economist for Comerica Bank, said.

Traders have stuck to their bets of around two interest rate

cuts this year, starting from September, LSEG FedWatch showed.

Also scheduled for the week are JOLTS job openings data on

Tuesday, and ADP employment, factory orders, ISM services PMI

data and minutes of the Fed's latest policy meeting on

Wednesday. Non-farm payroll data is due on Friday.

Fed New York President John Williams noted he continues to

believe price pressures are moderating back to the 2% target.

At 02:31 p.m. the Dow Jones Industrial Average rose

22.98 points, or 0.06%, to 39,141.84, the S&P 500 gained

6.23 points, or 0.11%, to 5,466.71 and the Nasdaq Composite

gained 101.40 points, or 0.57%, to 17,834.01.

On Friday, the Nasdaq and the S&P 500 notched their third

straight quarterly gains, with the tech-heavy index doing so for

the first time in three years. However, the Dow's quarterly

decline raised concerns about the need for greater

diversification in investor holdings.

Spirit AeroSystems ( SPR ) gained 3.6% following Boeing's ( BA )

deal to buy back the fuselage supplier for $4.7 billion

in stock. Boeing's ( BA ) shares rose 2.6%.

Chewy dropped about 4%, reversing sharp early

gains, after stock influencer Keith Gill, also known as "Roaring

Kitty", disclosed a 6.6% stake in the pet products retailer.

Declining issues outnumbered advancers by a 1.97-to-1 ratio

on the NYSE. There were 131 new highs and 82 new lows on the

NYSE.

The S&P 500 posted 11 new 52-week highs and 4 new lows while

the Nasdaq Composite recorded 37 new highs and 135 new lows.