US STOCKS-Wall St up as Portugal concerns ebb, ag stocks rise

                                

                                
 * Portuguese bond sale brings strong demand
                                
 * Agricultural companies gain on spike in food prices
                                
 * Comments on JPMorgan dividend lift banking shares
                                
 * Indexes up: Dow 0.8 pct, S&P 0.9 pct, Nasdaq 0.6 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates to afternoon trading, changes byline)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Jan 12 (Reuters) - U.S. stocks rose on Wednesday
after a healthy bond auction in Portugal eased nervousness
about the euro zone's debt crisis while a spike in food prices
lifted agricultural shares.
                                
 Two stocks rose for every loser on the New York Stock
Exchange on hopes euro-zone finance ministers would beef up the
European Union's rescue fund and after Portugal sold $1.62
billion amid strong demand. For details, see [ID:nLDE70B24M]
                                
 "The auction shows a stabilization in the European
situation, and that removes an item from our wall of worry,"
said Jason Pride, director of investment strategy at Glenmede
Investment and Wealth Management in Philadelphia. "There have
been fears of contagion that could ripple into equity markets
here."
                                
 Agricultural stocks rallied after a U.S. government report
that U.S. stockpiles of corn and soybeans would be drawn down
to surprisingly low levels. The news boosted food prices, which
in turn lifted companies in the group. [ID:nN12190436]
                                
 Seed company Monsanto Co <MON.N> rose 3.1 percent to $74.79
while Corn Products International <CPO.N> was up 2.2 percent to
$47.72. Farm equipment company Deere & Co <DE.N> rose 2.3
percent to $87.59.
                                
 "Any time you have stockpiles shrink, you can expect an
upward shock in prices," Pride said, adding that he was bullish
on the sector in the long term.
                                
 Banks were among gainers, with JPMorgan Chase & Co <JPM.N>
up 2.6 percent to $44.73 after its chief executive said the
bank could pay an annual dividend of up to $1 once the Federal
Reserve gives its approval, pending the completion of stress
tests. [ID:nN11151339]
                                
 In addition, Wells Fargo raised the U.S. bank sector to an
"overweight" rating, citing a decline in credit costs and
positive loan growth. [ID:nSGE70B0A1]
                                
 The Dow Jones industrial average <.DJI> was up 91.88
points, or 0.79 percent, at 11,763.76. The Standard & Poor's
500 Index <.SPX> was up 10.79 points, or 0.85 percent, at
1,285.27. The Nasdaq Composite Index <.IXIC> was up 17.26
points, or 0.64 percent, at 2,734.09.
                                
 ITT Corp <ITT.N> surged 15 percent to $60.42 after the
diversified manufacturer said it would separate its businesses
into three different publicly traded companies, and
shareholders will own shares in all three. [ID:nN12245683]
                                
 The stock was the top performer on the PHLX defense sector
index <.DFX>, which rose 2 percent.
                                
 Intel Corp <INTC.O>, a Dow component and tech bellwhether,
will release its quarterly results after the market closes on
Thursday.
 (Editing by Kenneth Barry)