US STOCKS-Wall St gains on China data, Fed hopes

* Dollar falls on Fed easing expectations

* China data lifts Caterpillar, industrials

* Intel, JPMorgan Chase post qtrly results

* Indexes up: Dow 0.7 pct, S&P 0.6 pct, Nasdaq 0.7 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to early morning)

By Chuck Mikolajczak

NEW YORK, Oct 13 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) advanced on
Wednesday on rising expectations the Federal Reserve will move
to prop up the economic recovery, and industrial stocks rose
after upbeat economic data from China.

Better-than-expected earnings from Dow components Intel and
JP Morgan Chase supported the market, though the individual
shares edged lower after rallying in recent weeks. Intel Corp
(INTC.O: ) shed 0.4 percent to $19.69, while JPMorgan Chase & Co
(JPM.N: ) dipped 0.6 percent to $40.16.

Caterpillar rose 1.5 percent to $80.51 and was the top
gainer on the Dow after data showed business confidence in
China rose and the trade surplus narrowed in the world’s No. 2
economy. The S&P capital goods index (.GSPIC: ) was up 1 percent.
For details, see [ID:nTOE69C038] and [ID:nLDE69C027]

The dollar remained under pressure after minutes from the
Fed’s latest meeting showed the U.S. central bank may once
again flood markets with cheap cash to boost growth. The dollar
index (.DXY: ) shed 0.2 percent and reflected the inverse
correlation between the dollar and equities. A decline in the
greenback has triggered a move into equities. [ID:nN13246735]

“Today’s rally is a little bit of the skeptics who weren’t
thinking quantitative easing now are, and you are getting a
little bit better news on earnings,” said John Canally,
investment strategist and economist for LPL Financial in
Boston.

Even with the benchmark S&P 500 posting an 11.6 percent
rise since Sept. 1, stocks continued to climb as earnings
poured in and investors jumped in.

“People may be chasing here. It’s difficult to charge a
client a management fee if they are just sitting in cash,”
added Canally.

The Dow Jones industrial average (.DJI: ) gained 75.27
points, or 0.68 percent, to 11,095.67. The Standard & Poor’s
500 Index (.SPX: ) rose 7.07 points, or 0.60 percent, to
1,176.84. The Nasdaq Composite Index (.IXIC: ) advanced 17.03
points, or 0.70 percent, to 2,434.95.

JP Morgan Chase posted a 23 percent increase in quarterly
profit, beating expectations, as a stabilizing economy helped
ease losses on credit card loans. [ID:nN11126621]

Intel, the world’s largest chipmaker, forecast upbeat
fourth-quarter sales and margins, raising hopes the technology
sector could end 2010 on a strong note. [ID:nN11136922]
(Editing by Jeffrey Benkoe)

US STOCKS-Wall St gains on China data, Fed hopes