* Microsoft slips after $8.5 bln Skype deal
* Chinese trade surplus rises almost four times forecasts
* Indexes up: Dow 0.5 pct, S&P 0.6 pct, Nasdaq 0.7 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to mid-morning trade)
By Rodrigo Campos
NEW YORK, May 10 (Reuters) - U.S. stocks rose on Tuesday after strong Chinese trade data eased concerns over a slowdown in the world's second-largest economy and pointed to healthy global demand.
The utilities sector led gainers on the S&P 500 as investors took more defensive positions on the view that the recovery was not accelerating as quickly.
China posted an $11.4 billion trade surplus in April, nearly four times greater than expected, after exports hit a record on healthy demand and imports rose less than forecast. For details see [ID:nL3E7GA09F] and [ID:nLDE7480YG]
"China's export numbers were very good," said Burt White, chief investment officer at LPL Financial in Boston. "That gave a shot in the arm to this market."
He said the market was relocating its growth expectations and a reallocation of assets is in the works.
"We're in a new position in this business cycle," White said, pointing to a shift "out of oil, basic materials and technology, and more toward companies with stable growth; sectors like utilities ..."
The utilities sector <.GSPU> rose 1 percent and was the best performer in the S&P 500.
The Dow Jones industrial average <.DJI> gained 63.91 points, or 0.50 percent, to 12,748.59. The Standard & Poor's 500 Index <.SPX> added 8.61 points, or 0.64 percent, to 1,354.90. The Nasdaq Composite Index <.IXIC> rose 18.40 points, or 0.65 percent, to 2,861.65.
Microsoft Corp
Dean Foods Co
As earnings season winds down, investors also awaited
results from Dow component Walt Disney Co