September 6, 2016 / 5:26 PM / 2 years ago

US STOCKS-Gains in energy, tech stocks prop up Wall Street

* Spectra Energy jumps on Enbridge deal

* Cepheid soars on $4 bln Danaher offer

* Indexes up: Dow 0.14 pct, S&P 0.18 pct, Nasdaq 0.41 pct (Updates to early afternoon)

By Yashaswini Swamynathan

Sept 6 (Reuters) - Wall Street was higher in choppy trading on Tuesday, helped by technology and energy stocks, but gains were limited by weak services data.

The S&P 500’s energy index rose 1.18 percent, even as oil slipped, driven by Enbridge’s acquisition of Spectra Energy for about $28 billion.

Spectra jumped 14 percent and was the biggest gainer on the energy index.

The dollar index fell 1 percent, its biggest decline in more than a month, after data showed that the services sector expanded at a slower pace in August than in the previous month.

Financials fell 0.42 percent after the data, with Wells Fargo and Bank of America weighing down the S&P 500.

“In the last week alone, every major data point has missed estimates and that raises some major questions of what the Fed’s next move is going to be,” said Adam Sarhan, CEO at Sarhan Capital.

The chances of a rate hike in September dropped to 15 percent from 21 percent after the data. Those odds fell to 46.9 percent from 50.6 percent for December, according to CME Group’s FedWatch tool.

At 12:55 p.m. ET (1655 GMT), the Dow Jones Industrial Average was up 26.3 points, or 0.14 percent, at 18,518.26.

The S&P 500 was up 3.92 points, or 0.18 percent, at 2,183.9.

The Nasdaq Composite was up 21.67 points, or 0.41 percent, at 5,271.57, as Facebook and touched record highs.

Seven of the 10 major S&P 500 indexes were higher, with the technology index trading at its highest level since 2000.

Cepheid soared about 52 percent after the diagnostics company agreed to be bought by Danaher for $4 billion, including debt. Danaher’s shares were down 2.1 percent.

Navistar jumped 44.5 percent after Volkswagen agreed to supply engines to the U.S. truck maker in exchange for a 16.6 percent stake.

Advancing issues outnumbered decliners on the NYSE by 1,628 to 1,293. On the Nasdaq, 1,493 issues rose and 1,291 fell.

The S&P 500 index showed 34 new 52-week highs and no new lows, while the Nasdaq recorded 150 new highs and 16 new lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)

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