* Dow up 0.7%, S&P 500 up 0.27%, Nasdaq down 0.48%
* Energy, materials and consumer staples lead sectoral gains
* Ebay gains as it is exploring crypto and NFTs
* Estee Lauder (NYSE: EL ) falls as Q3 revenue misses estimates
* U.S. manufacturing sector slows in April (Updates after market close)
By Krystal Hu and Shreyashi Sanyal
May 3 (Reuters) - The S&P 500 and the Dow indexes ended higher on Monday amid a largely upbeat earnings season, while the Nasdaq came under pressure from declines in some high-flying growth stocks, as the rotation into cyclical and "economy reopening" stocks continued.
Economy-sensitive cyclical S&P 500 sectors such as consumer staples .SPLRSC , energy .SPNY , and materials .SPLRCM outperformed sectors housing growth stocks, including technology .SPLRCM and communication services, .SPLRCL .
The largest percentage gainer on the S&P 500 was oil field services firm Baker Hughes BKR.N , which rose 8%. Apparel retailers also finished strong, with Gap Inc (NYSE: GPS ) GPS.N shares jumping 7.1% and Foot Locker (NYSE: FL ) Inc FL.N up 4.1%.
"All of those names that are having outsized gain today are as a result of economic reopening optimism, and people getting out of the house spending money on things," said Michael James, managing director of equity trading at Wedbush Securities.
Volume on U.S. exchanges was 10.29 billion shares, compared with the 9.86 billion average for the full session over the last 20 trading days.
"We've seen a slight change in the pace of value stocks outperforming growth stocks year-to-date," said Rod von Lipsey, managing director at UBS Private Wealth Management.
The stocks have struggled to maintain the upward trajectory coming into reporting season. Chipmakers also fell, with the Philadelphia SE Semiconductor index .SOX down by 1.2%.
With more than half of S&P 500 companies having reported so far, profits are now seen rising 46% in the first quarter, compared with forecasts of 24% growth at the start of April, according to IBES data from Refinitiv. About 87% of the companies have come also reported earnings per share ahead of analysts' estimates. is now the fourth straight quarter of earnings just absolutely crushing estimates," said Ross Mayfield, investment strategy analyst at Baird. "I think there just continues to be an underestimation of how strong this rally and how strong the economy is rebounding."
Strong earnings, improving economic data, fiscal stimulus and the Federal Reserve's ultra accommodative stance have supported markets, pushing the S&P 500 and the Nasdaq indexes to record levels last week.
U.S. manufacturing activity grew at a slower pace in April, likely constrained by shortages of inputs amid pent-up demand due to rising vaccinations and massive fiscal stimulus. Labor Department's non-farm payrolls data, slated to be released on Friday, is expected to show a rise in job additions in April.
The largest decliner was Estee Lauder EL.N , which dropped 7.9% after the cosmetics maker missed analysts' estimates for third-quarter sales. largest gainer on the Nasdaq 100 was Ebay Inc EBAY.OQ , which rose 4.2% after the e-commerce firm says it is open to accepting to cryptocurrencies in future.
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