* Stock rebound from steep selloff on Tuesday
* Tech stock lead gainers, Netflix hit by short-sell call
* Ambarella’s forecast drags on stock and GoPro
* Navistar falls on possibility of SEC lawsuit
* Indexes up: Dow 0.73 pct, S&P 0.55 pct, Nasdaq 0.8 pct (Adds details, changes comment, updates prices)
By Tanya Agrawal
Sept 2 (Reuters) - U.S. stocks were higher in late morning trading on Wednesday, rebounding from steep losses a day earlier, after China intervened to support its financial markets and help stem a global equities selloff.
Eight of the 10 major S&P sectors were higher with the technology index’s 1.2 percent rise leading the advancers. Apple, Microsoft and Intel were all up about 2 percent.
However, Netflix fell 3 percent after Citron Research recommended a short call on the stock.
The airlines index rose 2.5 percent, its best day in a week, as oil prices fell. Delta was up 3 percent and American Airlines up 4 percent. The rise in airline stocks helped the industrial index notch a 0.8 percent gain.
The S&P energy index was off 0.54 percent as oil prices fell on renewed fears of crude oversupply. Schlumberger and Kinder Morgan were down about 1.6 percent.
The utilities index fell 0.6 percent as U.S. Treasuries yields rose after China’s latest efforts to steady its markets reduced demand for safe-haven government debt.
Chinese stocks moved off steep losses to end almost flat on Wednesday after Chinese brokerages stepped up to buy shares, answering government calls to support the stock market and helping calm jittery investors.
At 11:16 a.m. ET (1516 GMT) the Dow Jones industrial average was up 116.45 points, or 0.73 percent, at 16,174.8. The S&P 500 was up 10.62 points, or 0.55 percent, at 1,924.47 and the Nasdaq composite was up 37.19 points, or 0.8 percent, at 4,673.30.
Wall Street closed sharply lower on Tuesday, with renewed concerns about China’s economy pushing major indexes down almost 3 percent and intensifying fears of a long-term selloff.
Still, the S&P 500 is now 10 percent lower than its May record high, with the prospect of slowing global growth and an impending interest rate hike curtailing a robust bull run since the depths of the financial crisis.
In economic data, an ADP report showed U.S. private employers maintained a solid pace of hiring in August despite recent global financial market turmoil, an encouraging sign ahead of Friday’s more comprehensive non-farm payrolls data.
Friday’s is the last monthly employment report before the U.S. Federal Reserve meets on Sept. 16-17, when it is widely expected to make an announcement on interest rates.
“I think there is still a 50-50 chance of a September rate hike because the employment situation continues to be strong but on the other hand inflation and volatility remains a concern,” said Art Hogan, chief market strategist at Wunderlich Securities.
“In some ways, I think the market would like to see a rate hike out of the way so that they know it’s behind them for the time being.”
In corporate news, shares of banks and bond insurers rose after Puerto Rico’s indebted public utility PREPA reached a deal with a key bondholder group.
OFG Bancorp rose 21 percent, First Bancorp increased 9 percent and MBIA Inc rose 12 percent.
Ambarella’s shares slid 12.6 percent at $78.31 after the chipmaker’s third-quarter revenue forecast largely fell short of estimates.
GoPro, Ambarella’s key customer, declined 9.5 percent to $39.52. Raymond James said Ambarella’s forecast likely means GoPro will not launch more products this year.
Navistar fell 5.8 percent to $16.34 after the engine maker said it could face regulatory enforcement action for its disclosure practices and posted its 12th quarterly loss in a row.
Advancing issues outnumbered decliners on the NYSE by 1,678 to 1,217. On the Nasdaq, 1,616 issues rose and 1,047 fell.
The S&P 500 index showed one new 52-week high and seven new lows, while the Nasdaq recorded 15 new highs and 27 new lows. (Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D‘Souza)