* Intel results, forecast help send equities higher
* New York business index strongest since April 2008
* Nasdaq, technology shares lead indexes up by about 2 pct
* For up-to-the-minute market news click []
(Updates to mid-morning)
By Rodrigo Campos
NEW YORK, July 15 (Reuters) - U.S. stocks rose sharply on
Wednesday as Intel Corp's <INTC.O> solid quarterly results and
outlook reinforced hopes for an economic recovery and a rebound
in technology spending.
Regional U.S. economic data underpinned the positive
sentiment, with the New York Fed's Empire State index for July
showing business conditions in the state at their strongest
since April 2008. For details see [].
Shares of Intel, a chip-maker and Dow component, rose 6.7
percent to $17.95 as its results and outlook blew past Wall
Street forecasts, helped by strong consumer demand for PCs,
setting the upbeat tone for the technology sector.
[].
AMD Micro Devices <AMD.N>, Intel's main rival, jumped about
9 percent while software giant Microsoft Corp<MSFT.O> rose 2.8
percent to $23.76.
The PHLX semiconductor index <.SOXX>, up 4.25 percent, was
on track for its fifth-straight day of gains -- it's longest
winning streak since a six-day run-up in late May.
The market is reacting positively to Intel's ability to
drive revenue, said Greg Palmer, head of equity trading at
Pacific Crest Securities in Portland, Oregon.
"Commentary on demand seems to indicate that the end of the
world is not, in fact here, and that is probably the main
take-away," he added, referring to Intel's quarterly results on
Tuesday.
"People are starting to feel like maybe we're coming toward
the tail end and the second half (of the year) can be better."
The Dow Jones industrial average <> rose 159.01 points,
or 1.90 percent, to 8,518.50. The Standard & Poor's 500 Index
<.SPX> gained 16.85 points, or 1.86 percent, to 922.69. The
Nasdaq Composite Index <> jumped 44.42 points, or 2.47
percent, to 1,844.15.
The broad S&P 500 index soared as much as 40 percent from a
12-year low hit in early March, but the rally stalled in June
as investors sought more convincing evidence the economy was
recovering from a deep recession. The index is now up 36
percent from the March lows.
An insight on how the Federal Reserve arrived at its recent
assessment of the economy's outlook is expected as minutes from
the latest Fed policy meeting are due at 2 p.m. (1800 GMT).
Pacific Crest's Palmer said the Fed minutes will be a key
driver for the market heading into the close.
In company news, defaults rose less than expected in June
for Capital One Financial Corp <COF.N>, one of the largest
issuers of Visa and MasterCard credit cards in the United
States, and the company's shares jumped 9 percent.
[]
The S&P financial sector index <.GSPF> rose 2.5 percent.
Commodities-related shares also rose, tracking gains in
metal and oil prices. Oil futures <CLc1> climbed 1.5 percent to
near $70 a barrel.
The U.S. dollar fell about 1 percent against a basket of
major currencies <.DXY>, and the greenback's weakness gave legs
to the rise in commodities.
Earlier on Wednesday, government data also showed June U.S.
consumer prices rose at a slightly faster-than-expected pace,
with the bulk of the increase coming from a leap in gasoline
prices, but the core measure of inflation remained relatively
tame.
(Editing by Padraic Cassidy)
