US STOCKS-Wall St rallies as euro-zone fears wane

                                
  
                                
 * Technology stocks lead advance
                                
 * Baidu shares jump following 10-for-1 stock split
                                
 * Cisco shares slip after the bell, Whole Foods jumps
                                
 * Dow up 1.4 pct, S&P up 1.4 pct, Nasdaq up 2.1 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
 (Updates with Cisco, Whole Foods after the bell)
                                
 By Rodrigo Campos
                                
 NEW YORK, May 12 (Reuters) - U.S. stocks capped their best
three-day run in 10 months on Wednesday boosted by technology
and industrial shares, after Spain unveiled an austerity plan
that reassured investors Europe was addressing its fiscal
ills.
                                
 Spain said it will slash civil service pay and cut
public-sector jobs, just a few days after EU finance ministers
approved a 750 billion euro ($1 trillion) bailout package to
stem the debt crisis, cheering investors. For details, see
[ID:nLDE64B0SK]
                                
 "The guarantees have placated investors for the time
being," said Chad Morganlander, portfolio manager at Stifel,
Nicolaus & Co in Florham Park, New Jersey.
                                
 Investors have worried that a European debt crisis that
began in Greece could spread around the world and potentially
curb global growth.
                                
 Technology shares posted the most gains as International
Business Machines Corp <IBM.N> forecast roughly doubling its
profit by 2015 a day after Intel Corp <INTC.O> said it expects
annual earnings growth to double over the next few years. For
details see [ID:nN11118695].
                                
 IBM shares jumped 4.6 percent to $132.68 and Intel rose
3.6 percent to $23.09. Fellow Dow component DuPont <DD.N>
gained 4.2 percent to $39.26.
                                
 Morganlander said the expectation of growth in Europe will
spur a sector rotation into highly cyclical sectors, including
technology and industrials.
                                
 The Dow Jones industrial average <.DJI> rose 148.65
points, or 1.38 percent, to 10,896.91. The Standard & Poor's
500 Index <.SPX> added 15.88 points, or 1.37 percent, to
1,171.67. The Nasdaq Composite Index <.IXIC> gained 49.71
points, or 2.09 percent, to 2,425.02.
                                
 Baidu Inc <BIDU.O> jumped 9.6 percent to $78.30 as
investors snapped up the Chinese Internet search giant's stock
following its 10-for-1 share split. [ID:nN12198892].
                                
 CISCO DROPS, WHOLE FOODS FLIES
                                
 Adding to the technology news, Cisco Systems Inc <CSCO.O>
reported results after the closing bell that showed 27 percent
growth in revenue. Cisco's stock slid 3.1 percent to $25.92 in
extended-hours trading -- a reversal from the regular session,
when it jumped 3 percent to end at $26.74.
                                
 Elsewhere in extended trading, Whole Foods Market Inc
<WFMI.O> jumped 5.7 percent to $42.56 after it reported
better-than-expected quarterly earnings and raised its
full-year profit and sales forecasts. [ID:nN12226813]. During
regular trading, Whole Foods gained 2 percent to end at
$40.25.
                                
 MACY'S AND APPLE GAIN
                                
 During the regular session, Macy's Inc <M.N> stock rose
3.4 percent to $24.70 during regular market hours after it
swung to a first-quarter profit and affirmed its outlook.
[ID:nN12173518]
                                
 On the downside, though, Dow component Walt Disney Co
<DIS.N> fell 1.8 percent to $35.13 a day after second-quarter
earnings beat expectations. But analysts said results at its
television network division were disappointing.
[ID:nN11225225]
                                
 Also on the downside, Morgan Stanley <MS.N> fell 2 percent
to $27.80 after the Wall Street Journal reported U.S.
officials were probing whether it misled investors about
mortgage derivative products it helped create. The chief
executive said he had no knowledge of any federal
investigation. [ID:nTOE64B07I]
                                
 Apple Inc <AAPL.O> shares rose 2.2 percent to $262.09,
shrugging off a patent infringement case filed by HTC Corp
<2498.TW>, a maker of phones based on Google Inc's <GOOG.O>
Android software, that aims to ban U.S. iPhone, iPad and iPod
sales. [ID:nN12207903].
                                
 ANOTHER GOLDEN MOMENT
                                
 The materials sector also climbed as the price of gold
surged to a second straight record high. On Wednesday, gold
climbed as high as $1,249.20 an ounce.
                                
 The PHLX gold and silver index <.XAU> rose 1 percent, with
Freeport-McMoRan Copper and Gold Inc <FCX.N> up 3.9 percent at
$73.
                                
 On the economic front, the U.S. trade deficit widened in
March to its highest level in more than a year as both imports
and exports rose in a sign of improved U.S. and foreign
demand. [ID:nN12149695]
                                
 About 9.37 billion shares traded on the New York Stock
Exchange, the American Stock Exchange and Nasdaq, slightly
below last year's estimated daily average of 9.65 billion.
                                
 Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 6 to 1, while on the Nasdaq, about four
stocks rose for every one that fell.
 (Reporting by Rodrigo Campos; Editing by Jan Paschal)