US STOCKS-Blue-chip earnings trigger sharp rally

(Updates to midday, changes byline)

By Cal Mankowski

NEW YORK, April 16 (Reuters) - U.S. stocks jumped on Wednesday after Intel Corp (INTC.O: Quote, Profile, Research), JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) and other blue chips reported quarterly results that lifted investors' spirits after a string of recent disappointments.

The Dow and the S&P 500 were up more than 1 percent each, while the Nasdaq was up 2 percent.

JPMorgan, the third-largest U.S. bank, reassured investors by saying it has a strong capital position and "solid business momentum" and posting earnings per share that exceeded the average analyst forecast. But even JPMorgan, one of the strongest U.S. banks, gave a bleak outlook for the economy and capital markets. For details, see [ID:nN16378871].

Investors snapped up tech stocks after Intel, the world's largest chip maker and a Dow component, reported revenue just above market expectations late on Tuesday and affirmed its full-year profit margin target. Coca-Cola Co (KO.N: Quote, Profile, Research), another Dow stock, reported results that beat analysts' expectations, citing a favorable currency translation that lifted revenue.

Companies such as Intel that do a lot of business overseas and companies that do not necessarily need access to financing are doing well, said Chris Orndorff, managing principal and head of equity strategy at Payden & Rygel in Los Angeles.

"People are maybe looking at what's priced into the market, which is a very pessimistic outlook, and I think they're also looking at valuations and saying a lot of bad news is already priced in," he said.

The Dow Jones industrial average .DJI rose 189.79 points, or 1.54 percent, to 12,552.26. The Standard & Poor's 500 Index .SPX gained 20.67 points, or 1.55 percent, to 1,355.10. The Nasdaq Composite Index .IXIC jumped 52.79 points, or 2.31 percent, to 2,338.83.