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US STOCKS-Financial, tech stocks drive Wall St higher
October 26, 2017 / 3:37 PM / in 25 days

US STOCKS-Financial, tech stocks drive Wall St higher

* Twitter jumps after signaling profitability in 4th quarter

* Celgene tumbles after results, drags on healthcare sector

* Yellen, Warsh out of Fed chief race - report

* Indexes up: Dow 0.51 pct, S&P 0.33 pct, Nasdaq 0.22 pct (Changes comment, updates prices, adds details)

By Sruthi Shankar

Oct 26 (Reuters) - Wall Street was higher on Thursday, driven by gains in financial and technology stocks and ahead of earnings from marquee companies, including Google-parent Alphabet and Amazon.

The earnings season has been largely positive, with 75 percent of the S&P 500 companies that have reported so far topping expectations.

However, with U.S. indexes at record levels, investors are taking a closer look at earnings to see if they justify stretched valuations.

Celgene’s 20 percent fall was the biggest drag on the S&P 500 and the Nasdaq, after the company reported lower-than-expected sales for its flagship multiple myeloma drug Revlimid and its psoriasis drug Otezla.

“You’re always going to see reactions to the misses, and that’s going to make the headlines. But stock prices tend to follow the bigger picture,” said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.

“Perhaps companies have done a little bit more in guiding expectations than usual.”

Market is also closely watching on any news around President Donald Trump’s nomination of the next Federal Reserve chair.

Trump’s search has come down to Fed Governor Jerome Powell and Stanford University economist John Taylor, according to a Politico report. A White House official told Reuters that no final decision had been made.

In a step closer towards enacting Trump’s tax cut plan, the U.S. House of Representatives voted to clear a procedural path forward for the tax bill, which is expected to be unveiled next week.

At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial Average was up 117.86 points, or 0.51 percent, at 23,447.32, the S&P 500 was up 8.32 points, or 0.33 percent, at 2,565.47 and the Nasdaq Composite was up 14.17 points, or 0.22 percent, at 6,578.06.

Healthcare was the only laggard among the 11 major S&P sectors.

Bristol-Myers Squibb fell 3.6 percent after the company said its gross margin, as a percentage of revenue, fell.

AbbVie dropped 1.8 percent after reporting deaths in psoriasis studies.

Tech sector’s 0.65 percent rise led the gainers. Microsoft and Intel are the other big companies set to report after the bell.

A more than 1 percent rise in JPMorgan and Bank of America led gains in the financial index.

Twitter jumped 15 percent after the company said it could turn its first ever profit in the fourth quarter, helped by cost cuts and new sources of revenue.

Advancing issues outnumbered decliners on the NYSE by 1,592 to 1,139. On the Nasdaq, 1,578 issues rose and 1,107 fell. (Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D‘Silva)

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