US STOCKS-Wall St rises on renewed earnings optimism

                                

                                
 * Intel boosts buyback program, focus on tech large caps
                                
 * Materials shares rise alongside metals prices
                                
 * Volatility gauges in options support S&P turnaround
                                
 * Stocks up: Dow 0.9 pct, S&P 0.6 pct, Nasdaq 1 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates with American Express, Texas Instruments results in
paragraph 16, trading volume in paragraph 6)
                                
 By Angela Moon
                                
 NEW YORK, Jan 24 (Reuters) - Wall Street resumed its rally
on Monday, led by natural resources and tech shares as
investors saw stocks regaining momentum lost late last week.
                                
 A share-buyback from Dow component Intel helped revive
optimism, which has been reinforced by more strong profit
reports. Three-quarters of the 84 S&P 500 companies that have
reported results so far in this earnings season have beaten
analysts' estimates.
                                
 "Strong earnings are what's pushing the market higher and I
don't see a correction in sight until the (earnings) season is
over," said Keith Springer, president of Springer Financial
Advisors in Sacramento, California.
                                
 "Even after the earnings, I don't think we will see a major
correction but rather a pause or a breather since there isn't a
major fundamental issue."
                                
 Volatility indicators in the options market also suggested
a turnaround after the S&P's decline last week when the
benchmark index fell after seven straight weeks of gains.
                                
 But trading volume was the lowest of the year at 7.02
billion shares traded on the New York Stock Exchange, the
American Stock Exchange and Nasdaq. Last year's estimated daily
average was 8.47 billion shares.
                                
 On Monday the Dow Jones industrial average <.DJI> ended up
108.68 points, or 0.92 percent, at 11,980.52. The Standard &
Poor's 500 Index <.SPX> was up 7.49 points, or 0.58 percent, at
1,290.84. The Nasdaq Composite Index <.IXIC> was up 28.01
points, or 1.04 percent, at 2,717.55.
                                
 The blue-chip Dow neared the psychologically
 important 12,000, pulled higher by natural resources stocks
like Alcoa while the Nasdaq gained more than 1 percent on
large-cap tech shares.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 For a graph on earnings and revenue surprises, see
                                
 http://r.reuters.com/kun67r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 Shares of Alcoa Inc <AA.N> jumped 4 percent to $16.43 after
its chief executive said he sees continued demand for aluminum
in 2011. For details, see [ID:nN24259041]
                                
 The S&P materials sector <.GSPM> advanced 1 percent. Copper
prices rose as concerns about a decrease in Chinese demand were
replaced by worries over supply constraints. [ID:nLDE70N0TF]
                                
 Intel Corp <INTC.O> shares rose 2 percent to $21.24 after
it raised its dividend by 15 percent and authorized another $10
billion for stock repurchases, a sign larger technology
companies with slower growth may be looking for ways to reward
investors. [ID:nN24174600]
                                
 The Credit Suisse Fear Barometer, a gauge for investor
sentiment, hit a six-month high late last week and the CBOE
Volatility Index <.VIX>, a similar gauge, also jumped more than
10 percent from its lowest point over the past week.
                                
 "When we've seen a high CSFB (Credit Suisse Fear Barometer)
and jumpy VIX in the past, it has usually meant a short-term
rebound in the S&P," said Jason Goepfert of SentimenTrader in a
report.
                                
 Chip-makers recovered from last week's fall with Nvidia
Corp <NVDA.O> shares jumping 11.4 percent to $24.76 after
Barron's said its stock could nearly double in price this year.
[ID:nN24187445].
                                
 VMware Inc <VMW.N> shares were down 2.3 percent at $86.50
in extended trade, reversing earlier gains after the company
reported after the bell that its quarterly profit rose sharply.
[ID:nN24198341]
                                
 Shares of credit card company American Express <AXP.N> fell
1.4 percent to $45.15 and chipmaker Texas Instruments <TXN.N>
slipped 1.8 percent to $34.02 in extended-hours trading after
the companies reported results. [ID:nN24205148]
[ID:nN24201755]
                                
 But shares of oilfield services company Halliburton Co
<HAL.N> gained 1 percent to $39.55 in regular trading after
reporting earnings. [ID:nN24164560] [ID:nN24282033]
                                
 J.C. Penney Co Inc <JCP.N> shares jumped 6.8 percent to
$32.40 on news activist investor William Ackman will join the
department store operator's board next month, heading off a
potential fight over the direction of its turnaround.
[ID:nN24224739].
                                
 Advancing stocks outnumbered declining ones on the NYSE by
2,114 to 882. On the Nasdaq, advancers beat decliners 1,721 to
939.
                                
 (Additional reporting by Doris Frankel in Chicago; Editing
by Kenneth Barry)