US STOCKS-Market rises on retail data; Dow, S&P up 1 pct

(Updates to show Dow, S&P gains reaching 1 percent)

NEW YORK, Feb 13 (Reuters) - U.S. stocks rallied on Wednesday, with gains on the Dow and S&P 500 topping 1 percent, after a surprise gain in January retail sales suggested consumer spending would hold up and help the economy avert a recession.

The Dow Jones industrial average .DJI was up 135.02 points, or 1.09 percent, at 12,508.43. The Standard & Poor's 500 Index .SPX was up 13.56 points, or 1.01 percent, at 1,362.42. The Nasdaq Composite Index .IXIC was up 38.47 points, or 1.66 percent, at 2,358.51. (Reporting by Jennifer Coogan; Editing by Kenneth Barry)