US STOCKS-Wall St gains on earnings, China data

* China data lifts Caterpillar, industrials

* CSX, Intel, JPMorgan Chase post qtrly results

* Indexes up: Dow 1 pct, S&P 1 pct, Nasdaq 1.1 pct

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to midday, changes byline)

By Caroline Valetkevitch

NEW YORK, Oct 13 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) rose on Wednesday
as stronger-than-expected corporate earnings and upbeat data
from China helped fuel optimism about a recovery.

The rally marked the fourth day of gains for the S&P 500,
which is up 12.5 percent since Sept. 1, and underscored the
view that quarterly results will once again top Wall Street
expectations.

Although the earnings period has just begun, results from
81 percent of S&P 500 companies have surpassed expectations,
well above the 61 percent long-term average, according to
Thomson Reuters data.

Railroad operator CSX Corp (CSX.N: ) jumped 4.1 percent to
$59.61 after it reported stronger-than-expected quarterly
profits late Tuesday. For details, see [ID:nN12197403]

JPMorgan Chase and Co (JPM.N: ) Intel Corp (INTC.O: ) also
reported above-estimated earnings, but their shares edged lower
after rallying in recent weeks. Intel shed 0.8 percent to
$19.62, while JPMorgan Chase dipped 0.4 percent to $40.25.
[ID:nN11126621] and [ID:nN11136922]

“Earnings reports to date appear to be justifying the
recent rally, and I think that’s allowing people to feel like
they’re getting good value by continuing to buy stocks,” said
Michael Cuggino, president of Permanent Portfolio Funds in San
Francisco.

Business confidence in China rose and the trade surplus
narrowed in China the world’s No. 2 economy, data showed,
helping industrial shares. Caterpillar Inc (CAT.N: ) was up 2.1
percent at $81.02, and the S&P capital goods index (.SPGIC: )
added 1.7 percent. [ID:nTOE69C038] and [ID:nLDE69C027]

Further boosting sentiment, the U.S. central bank may once
again flood markets with cheap cash to boost growth, according
to minutes from the Federal Reserve’s latest meeting.

The Dow Jones industrial average (.DJI: ) jumped 114.96
points, or 1.04 percent, at 11,135.36. The Standard & Poor’s
500 Index (.SPX: ) was up 11.53 points, or 0.99 percent, at
1,181.30. The Nasdaq Composite Index (.IXIC: ) rose 26.16 points,
or 1.08 percent, at 2,444.08.

The dollar index (Read more about the global trade. ) (.DXY: ) shed 0.3 percent and reflected the
recent inverse correlation between the dollar and equities. A
decline in the greenback has helped trigger a move into
equities. [ID:nN13246735]

Earnings as well as the low bond yields could also propel a
move to riskier assets, Cuggino said.

“One thing we’ve seen in this economic recovery is that
while we still have a lot of labor issues, corporate profits
have held up really well,” Cuggino said.

Based on their recent history, top S&P 500 companies have a
high probability of beating expectations, according to data
from Birinyi Associates in Westport, Connecticut, which
compiled data on results from the last five years.
(Additional reporting by Charles Mikolajczak; editing by
Jeffrey Benkoe)

US STOCKS-Wall St gains on earnings, China data