*

Focus on Fed speakers after Friday's payrolls data

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Paramount Global ( PARAA ) up as bidders await word from special

committee

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Tyson Foods ( TSN ) shares sink on worries over consumer demand

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Spirit Airlines ( SAVE ) drops to record low after earnings

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Indexes up: Dow 0.34%, S&P 0.71%, Nasdaq 0.81%

(Updated at 1758 GMT/1358 Eastern time)

By Shristi Achar A and David French

May 6 (Reuters) - U.S. stock indexes rose on Monday,

extending gains made last week on investors betting on a greater

chance of the Federal Reserve cutting interest rates this year.

The benchmark S&P 500 and the tech-heavy Nasdaq

hit three-week highs after data on Friday showed U.S.

job growth slowed more than expected in April, taking pressure

off the U.S. central bank to keep rates higher for longer.

"The economic news has been just right. It's still eliciting

signs of underlying strength in the economy that should allow

earnings growth to continue to foster an environment where stock

prices can advance," said Mark Luschini, chief investment

strategist at Janney Montgomery Scott in Philadelphia.

"At the same time, it is not running so hot as to once again

threaten the Fed's current posture."

Speaking on Monday, Richmond Fed President Thomas Barkin

said the current interest rate level should cool the economy

enough to return inflation to the central bank's 2% target, with

the strength of the job market giving officials time to wait.

Barkin, a voter this year on interest rate policy, added

that inflation "data whiplash" supported the Fed's deliberative

policy towards interest rates.

Such commentary echoed the Fed last week signaling it

was leaning toward eventual reductions in borrowing costs, but

wants to gain "greater confidence" that inflation will continue

to fall before cutting rates.

Traders are currently pricing in rate cuts worth 46 basis

points from the Fed by the end of 2024, with the first cut

expected in September or November, according to LSEG's rate

probability app.

At 01:58 p.m. the Dow Jones Industrial Average rose

129.72 points, or 0.34%, to 38,805.40, the S&P 500 gained

36.30 points, or 0.71%, to 5,164.09 and the Nasdaq Composite

gained 130.06 points, or 0.81%, to 16,286.69.

Nine of 11 S&P 500 sectors traded in positive territory.

The energy index was among the leading gainers, rising

1% in part due to U.S. natural gas futures hitting their

highest level in

14 weeks

.

With the earnings season in full swing, investors will also

keep an eye on quarterly numbers from major firms, including

Walt Disney ( DIS ) and Uber ( UBER ) this week.

Of the 397 firms in the S&P 500 that have reported earnings

through Friday, 76.8% beat analysts' profit estimates, compared

with the long-term average of 66.7%, as per LSEG data.

Arm Holdings is another with earnings on deck this

week. It was up 4.6% on Monday, as chipmakers broadly gained.

Micron Technology ( MU ) increased 4.6% after a report said

Baird upgraded the stock, and Advanced Micro Devices and

Super Micro Computer were, respectively, 2.9% and 5.2%

higher - recovering ground lost after disappointing earnings

from the pair last week.

Paramount Global ( PARAA ) added 4.9% after the media company

ended its exclusive negotiations with Skydance Media without a

deal, allowing the special committee to entertain other offers

from rival bidders.

Tyson Foods ( TSN ) fell 8.2% after the meatpacker surpassed

Wall Street expectations for second-quarter profit but warned

that consumers were under pressure from persistent inflation.

Meanwhile, Spirit Airlines ( SAVE ) hit a record low,

slumping 12%, after reporting a weak revenue outlook for the

second quarter.

By contrast, other airlines soared, with American

Airlines and Southwest Airlines both gaining more than 5%.