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Gap soars after raising annual sales forecast

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Intuit drops after forecasting Q2 results below estimates

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S&P manufacturing and services activity at 48.8 and 57 in

Nov

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Indexes: Dow up 0.60%, S&P 500 up 0.21%, Nasdaq down 0.07%

(Updates at market open)

By Johann M Cherian and Purvi Agarwal

Nov 22 (Reuters) - The S&P 500 and the Dow touched over

one-week highs on Friday after data showed a still robust

economy, while small-cap stocks outperfomed large-cap indexes.

The S&P flash PMI showed manufacturing activity stood at

48.8 in November, in line with estimates from a Reuters poll of

economists. Services activity was at 57, beating expectations. A

reading above 50 indicates expansion.

At 09:53 a.m. ET, the Dow Jones Industrial Average

rose 264.30 points, or 0.60%, to 44,134.65, the S&P 500

gained 12.58 points, or 0.21%, to 5,961.29 and the Nasdaq

Composite lost 13.49 points, or 0.07%, to 18,958.93.

Keeping a lid on gains on the tech-heavy Nasdaq, Alphabet

dipped 0.9%, following on from Thursday's 4% drop, as

the Department of Justice argued to a judge the company was

monopolizing online search.

The S&P 500 communication services sector lost

0.5%, although a majority of the 11 sectors were in the green

led by consumer staples' 0.9% gain.

The small-cap Russell 2000 index gained 0.9% to touch

a more than one-week high and was set for weekly advances of

about 3%.

"With an economy that's going to broaden out and see

earnings growth coming from more of the economic sectors than

just IT and communication services, it makes sense to again

rotate into those smaller cap and midcap companies and so that

puts a little bit of pressure on the larger caps," said Thomas

Martin, senior portfolio manager, Globalt Investments.

The benchmark S&P 500 and blue-chip Dow closed

Thursday at one-week highs, with AI bellwether Nvidia ( NVDA )

managing modest gains after its quarterly forecast, while

investors took comfort from robust economic data. On the day,

Nvidia ( NVDA ) fell 1.9%.

The three main indexes are on track for weekly gains, with

sentiment still strong about the positive implications Donald

Trump's tax and tariff policies could have for corporates after

his win in the presidential election.

Expectations on the Federal Reserve's policy move in

December have recently swayed between a pause and a cut, as

investors weigh the impact Trump's policies can have on price

pressures.

There is a 59.6% probability the central bank will lower

borrowing costs by 25 basis points, as per the CME Group's

FedWatch Tool. Most brokerages also back a quarter-point cut.

Markets were also monitoring a missile exchange between

Ukraine and Russia after the latter lowered its threshold for a

nuclear retaliation earlier in the week.

Among top movers, Gap Inc ( GAP ) jumped 8.7% after the Old

Navy parent raised its annual sales forecast and said the

holiday season was off to a "strong start".

Intuit lost 3.9% after the TurboTax parent

projected second-quarter revenue and profit below Wall Street

estimates on Thursday.

Honeywell International ( HON ) advanced 1.7% after the

industrial giant said it will sell its personal protective

equipment business for about $1.33 billion.

Advancing issues outnumbered decliners by a 3.18-to-1 ratio

on the NYSE and by a 2.16-to-1 ratio on the Nasdaq.

The S&P 500 posted 53 new 52-week highs and no new lows

while the Nasdaq Composite recorded 82 new highs and 34 new

lows.