Intel led the Dow with a jump of $1.55, or 7.8%, to $21.41, after the chip maker posted first Buy wholesale - Cheap products, Best buy wholesale online R Us -quarter earnings and revenue above analysts' expectations, along with a second-quarter revenue outlook that topped Wall Street estimates.
United Technologies was also strong with a gain of 3.54, or 4.3%, to 85.90, as the maker of elevators and airplane engines also posted first-quarter earnings above Wall Street expectations on strong revenue growth and margin expansion.
Earnings from International Business Machines also exceeded expectations, but the technology giant's shares slipped 65 cents, or 0.4%, to 164.75, as the company didn't lift its full-year forecast by as much as some investors had hoped and services signings disappointed.
The Nasdaq Composite jumped 57.54, or 2.10%, to 2802.51, and the Standard & Poor's 500-stock index added 17.74, or 1.35%, to 1330.36. The technology sector led the advance, as the stronger-than-expected earnings and revenue growth from Intel and IBM boosted sentiment for the quarterly results to come from others in the sector.
Nick Raich, director of research and senior vice president at Key Private Bank, said he was particularly encouraged to see more companies reporting revenue increases.
"Everyone's been saying earnings are coming from the cost cutting, but when you actually see the sales in the businesses start to improve, that's when investors say 'hey, things are improving.'"
U.S. economic data also provided a lift after the National Association of Realtors said existing-home sales increased 3.7% in March from February. Economists had expected a smaller increase.
Together, the latest earnings and housing data helped alleviate investors' concerns about the economy just two days after Standard & Poor's Ratings Services cut its outlook on U.S. Buy wholesale - Cheap products, Best buy wholesale online R Us government debt. It also helped U.S. stocks erase the declines that followed the S&P move on Monday, when the market suffered its biggest one-day drop in almost a month.
"There has been a growing worry that the economic momentum is slowing both domestically and globally and the economic data in terms of housing has helped to assuage those fears a bit and the earnings that have come out in terms of technology have offered positive reinforcement that global demand remains intact," said Quincy Krosby, chief market strategist at Prudential Financial. "Technology especially is crucial because it is an integral component of global growth."
Wednesday's climb in U.S. stocks followed gains in Asian and European markets, which rallied on the strong U.S. corporate earnings as well as a well-received Spanish bond auction.
Among stocks in focus, shares of DPL jumped 2.58, or 9.4%, to 30.17, after power company AES agreed to acquire the utility for an 8.7% premium over DPL's Tuesday closing share price. Shares of AES rose 41 cents, or 3.3%, to 12.88.
However, Wells Fargo dropped 1.24, or 4.1%, to 28.83. Investors were disappointed with a drop in revenue at the in the first quarter as its mortgage business cooled, a decline that tepid loan demand from corporations couldn't offset.
CIT Group jumped 2.81, or 7%, to 43.26. The commercial lender said regulators lifted a cease-and-desist order, now allowing the company to increase its brokered deposits. The go-ahead bolsters the small business lender's access to deposits, a cheap funding source, and underscores CIT's progress in winning back the confidence of regulators.
Wynn Resorts climbed 8.99, or 6.5%, to 147.92. The casino resort operator's first-quarter profit jumped as revenue surged on strength in Las Vegas and Macau.
Yahoo added 75 cents, or 4.7%, to 16.87. The Internet heavyweight's first-quarter earnings fell 28% as the company continues to contend with revenue-sharing costs, but its profit beat analysts' expectations. Yahoo's revenue outlook for the current quarter also came in line with analysts' expectations.
Amphenol Corp. gained 3.34, or 6.5%, to 54.92. The company, which makes fiber-optic and electronic connectors, cable and interconnect systems, reported first-quarter earnings above analysts' consensus estimate, benefetting from stronger demand for its interconnect products.
EMC Corp. rose 1.24, or 4.6%, to 27.96. The data-storage company's first-quarter earnings rose 28% on better-than-expected revenue growth, especially from its growing international markets.
Freeport-McMoRan Copper & Gold added 1.58, or 3.1%, to 53.30. The miner's first-quarter profit jumped 59% as higher production and surging prices boosted the top line.
Polaris Industries surged 19.10, or 21%, to 110.28. The producer of all-terrain vehicles and motorcycles more than doubled its first-quarter profit on sharp sales growth in all its major segments and expanded margins. The stronger-than-expected results prompted the company to raise its 2011 profit outlook.
United Rentals tumbled 3.13, or 9.9% Buy wholesale - Cheap products, Best buy wholesale online R Us, to 28.37. The equipment-rental company's first-quarter loss narrowed as revenue increased on higher rates and volume, but its adjusted loss was worse than analysts had expected.
