US STOCKS-Wall St jumps on earnings, China data

* China data lifts Caterpillar, industrials

* CSX, Intel, JPMorgan Chase post quarterly results

* Dow up 1.1 pct, S&P up 1.1 pct, Nasdaq up 1.3 pct

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

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 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 the majority of quarterly results will once again top
Wall Street’s expectations.

S&P 500 companies’ earnings are expected to rise 23.6
percent from a year ago, which would represent a fourth
straight quarter of year-over-year earnings increases,
according to Thomson Reuters data.

Railroad operator CSX Corp (CSX.N: ) jumped 4.6 percent to
$59.89 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. JPMorgan Chase slipped 1.2
percent to $39.91. Intel shed 1.8 percent to $19.41, a day
after the dominant chipmaker also gave an upbeat forecast for
fourth-quarter sales and margins. [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 $81.01, and the S&P capital goods index (.GSPIC: )
added 1.6 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: ) was up 119.47
points, or 1.08 percent, at 11,139.87. The Standard & Poor’s
500 Index (.SPX: ) was up 13.03 points, or 1.11 percent, at
1,182.80. The Nasdaq Composite Index (.IXIC: ) was up 30.60
points, or 1.27 percent, at 2,448.52.

The dollar index (Read more about the global trade. ) (.DXY: ) shed 0.4 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.

Although the earnings period has just begun, results from
81 percent of S&P 500 companies have surpassed expectations.
The long-term average for beats for an entire reporting period
is 61 percent, Thomson Reuters data showed.
(Reporting by Caroline Valetkevitch; Editing by Jan Paschal)

US STOCKS-Wall St jumps on earnings, China data