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Cisco ( CSCO ) gains after forecasting upbeat Q1 rev, cutting 7%

jobs

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Nike ( NKE ) rises as Ackman's Pershing Square reveals new stakes

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Walmart ( WMT ) advances after raising FY profit forecast

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Indexes up: Dow 1.26%, S&P 500 1.03%, Nasdaq 1.2%

(Updated at 9:35 a.m. ET/1335 GMT)

By Shubham Batra and Shashwat Chauhan

Aug 15 (Reuters) - Wall Street's main indexes rose about

1% on Thursday as retail sales data for July indicated resilient

consumer spending, allaying fears of an imminent recession in

the world's biggest economy.

All megacap and growth stocks edged up, with Tesla

leading the pack, rising 4.1%.

Nine of the 11 major S&P 500 sectors were trading higher,

with consumer discretionary and materials

leading gains.

Retail sales increased 1.0% last month after a downwardly

revised 0.2% drop in June, easing fears of a sharp economic

slowdown that were fanned by a jump in the unemployment rate

last week.

"The economy is not going into a recession imminently. This

will take 50 basis points in September off the table. Still

think that 25 basis points make sense just because inflation

continues to ease," said Steve Wyett, chief investment

strategist at BOK Financial.

The yield of the two-year and 10-year

Treasury notes rose after the data, with traders increasing the

bets for a 25 basis points rate cut by the Federal Reserve to

75% versus 65% before the data.

Meanwhile, retail bellwether Walmart ( WMT ) added 7.5%

after raising its annual profit forecast for the second time

this year, as Americans kept flocking to its stores for

inexpensive essentials.

Rival Target ( TGT ) also jumped 4.8%, while Costco

advanced 2%.

A separate reading also showed the number of Americans

filing

new applications for unemployment benefits

unexpectedly fell last week.

Investors have kept a cautious eye on this week's data

releases - the last set of economic indicators before Fed

Chairman Jerome Powell delivers a much-anticipated speech at

Jackson Hole next week.

Atlanta Fed President Raphael Bostic told the Financial

Times that he is open to an interest rate cut in September,

while St. Louis Fed chief Alberto Musalem stated that the time

for the central bank to start easing monetary policy may be

nearing.

The S&P 500 on Wednesday extended its winning streak

to five sessions, boosted by softer inflation data, but the

Nasdaq barely scraped into positive territory as

Alphabet and some megacap stocks weighed.

At 9:35 a.m. ET, the Dow Jones Industrial Average

rose 503.66 points, or 1.26%, to 40,512.05, the S&P 500

gained 56.25 points, or 1.03%, to 5,511.46 and the Nasdaq

Composite gained 206.07 points, or 1.20%, to 17,398.67.

Among other movers, Cisco Systems ( CSCO ) rose 9.4% after

it forecast better-than-expected first-quarter revenue and said

it was cutting 7% of its global workforce.

Nike ( NKE ) climbed 3.3% as billionaire investor William

Ackman built new stakes in the sportswear company, while Ulta

Beauty ( ULTA ) jumped 10.4% after Warren Buffett's Berkshire

Hathaway ( BRK/A ) acquired a stake in the cosmetics store chain.

Deere & Co ( DE ) gained 5.8% after the farm, construction

and forestry equipment maker beat analysts' expectations for

third-quarter profit.

Advancing issues outnumbered decliners by a 4.76-to-1 ratio

on the NYSE and by a 4.18-to-1 ratio on the Nasdaq.

The S&P 500 posted 21 new 52-week highs and one new low,

while the Nasdaq Composite recorded 38 new highs and 30 new

lows.