* Amazon hits record high, boosting S&P and Nasdaq
* Oil up about 4 pct, boosting energy shares
* Gap drops after sales fall for fifth straight quarter
* Indexes up: Dow 1.1 pct, S&P 1.01 pct, Nasdaq 1.03 pct (Updates to early afternoon)
By Tanya Agrawal
May 10 (Reuters) - U.S. stocks were up more than 1 percent on Tuesday, putting them on track for their biggest one-day gain in about a month, helped by a rally in financial shares and with commodity prices boosting energy and industrial stocks.
Amazon jumped 3.2 percent to a record of $701.40, providing the biggest boost on the S&P and the Nasdaq. Bernstein raised its price target to $1,000, the highest on Wall Street, on the stock, saying it expects Amazon’s margins to expand much faster than currently expected.
All 10 major S&P sectors were higher, led by a 1.53 percent rise in the industrials index. Oil was up about 4 percent as supply disruptions in Canada and elsewhere overshadowed fears of oversupply.
World stock markets had also risen, helped by solid corporate earnings in Europe, progress on Greek debt talks, and a new pledge by Japan that it was prepared to weaken the yen.
“Comments from Japan regarding an intervention in the yen and a stabilization in oil prices are helping equities today,” said Dan Farley, regional investment strategist at U.S. Bank Wealth Management in Minneapolis.
“We’re also at the end of the earnings season and while we aren’t expecting a massive improvement in profit, I do expect to see some revenue growth in the second quarter.”
At 12:54 p.m. ET (1654 GMT) the Dow Jones industrial average was up 194.02 points, or 1.1 percent, at 17,899.93, the S&P 500 was up 20.71 points, or 1.01 percent, at 2,079.4.
The Nasdaq Composite was up 48.72 points, or 1.03 percent, at 4,798.93, led by Amazon and IT shares.
All three indexes were set for their biggest intraday percentage gain since April 13.
The S&P 500’s 15 percent rally since its February lows had slowed in the last two weeks due to underwhelming quarterly earnings and mixed U.S. economic data.
However, U.S. stock’s snapped a three-day losing streak was broken on Friday after the jobs report suggested the Federal Reserve would raise rates just once this year. Wall Street also ended mostly higher on Monday as healthcare shares rose.
The S&P energy sector was up about 1.32 percent. The financials index gained 1.38 percent, with Goldman up 2.5 percent and JPMorgan up 1.7 percent.
Gap tumbled 12.3 percent to $19.11, the biggest drop among S&P 500 companies, after the retailer reported a decline in sales for the fifth straight quarter.
Allergan was up 3.1 percent at $220.34 after the Botox maker reported a better-than-expected quarterly profit.
Advancing issues outnumbered decliners on the NYSE by 2,225 to 701, for a 3.17-to-1 ratio on the upside. On the Nasdaq, 1,833 issues rose and 898 fell for a 2.04-to-1 ratio favoring advancers.
The S&P 500 index showed 46 new 52-week highs and four new lows, while the Nasdaq recorded 39 new highs and 46 new lows. (Reporting by Tanya Agrawal; Editing by Savio D’Souza)