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* U.S. Senate votes to pass infrastructure package
* 'Meme stock' AMC gives up early gains and closes down
* Kansas City Southern jumps as Canadian Pacific ups buyout offer (New throughout, updates prices, market activity and comments to close)
By Chuck Mikolajczak
NEW YORK, Aug 10 (Reuters) - Wall Street rose on Tuesday, with the blue-chip Dow closing at a record high, as economically sensitive value stocks gained with the U.S. Senate's passage of a $1 trillion bipartisan infrastructure package.
The bill, which now heads to the House of Representatives, could provide the nation's biggest investment in decades in roads, bridges, airports and waterways. Senators also began voting on a follow-up $3.5 trillion spending package that Democrats plan to pass without Republican votes.
"The market is looking at it as part one is a done deal, the market is OK with that," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"I do not believe the market is going to be OK with $3.5 trillion but there is still the possibility they are able to block it, or slow it, and have more conversation so the market isn’t focusing on that one yet."
Energy, industrials and materials , which stand to benefit from an economic recovery, were the top performing sectors, while names such as Caterpillar , Deere and Vulcan Materials each rose about 2% as they are poised to reap the gains of infrastructure projects.
The iShares US Infrastructure ETF and the Global X US Infrastructure Development ETF also advanced.
Energy shares were buoyed as recently beaten down crude prices jumped 3%.
Unofficially, the Dow Jones Industrial Average rose 163.05 points, or 0.46%, to 35,264.9, the S&P 500 gained 4.42 points, or 0.10%, to 4,436.77 and the Nasdaq Composite dropped 71.98 points, or 0.48%, to 14,788.20.
With new coronavirus cases rising in the United States, progress on the infrastructure package should support the recovery in the world's largest economy.
The rapid spread of the Delta variant has pushed COVID-19 cases and hospitalizations to a six-month high, with cases averaging 100,000 for three days in a row - up 35% over the past week.
Investor will also watch inflation numbers this week for more insight into the Federal Reserve's monetary policy plans, in the wake of comments from two Fed officials on Monday that inflation was already at a level that could satisfy one portion of the requirement for the beginning of rate hikes.
AMC Entertainment gave up early gains and ended the session lower even after beating second-quarter revenue estimates as moviegoers returned to its theaters after a year of closures and restrictions.
Kansas City Southern gained after Canadian Pacific Railway Ltd raised its offer for the U.S. railroad operator by about $2 billion to $27.29 billion. (Reporting by Chuck Mikolajczak; Editing by David Gregorio)