TECH STOCKS: Anticipation Drives Markets HigherTECH STOCKS: Anticipation Drives Markets Higher

Optimism ahead of the first major fourth-quarter earnings reports sent stocks sharply higher Wednesday.

Investors went heavily for blue chips and tech stocks in the hope that Intel and other major companies would come through with positive earnings results after the bell. Intel did beat earnings projections, but its first-quarter outlook appeared to disappoint the market, and it and other high-tech stocks fell in after-hours trading--raising the possibility of more selling Thursday.

The Dow industrials rose 111.19 points, or 1.1%, to close the regular session at 10,538.37, more than making up for a 58-point drop Tuesday. The Nasdaq composite index rose 14.69 points, or 0.7%, to 2,111.13, and the Standard & Poor's 500 index rose 9.09 points, or 0.8%, to 1,130.31. Our information 100 rose 2.17 points, or 0.6%, to 341.15. The Nasdaq-100 tracking stock rose 13 cents to $38.08 as more than 68.1 million shares changed hands.

Intel posted earnings that were 8 cents per share above analysts' estimates and boasted record quarterly revenue, but its first-quarter revenue forecast of $7.9 billion to $8.5 billion was less than many Wall Street analysts expected.

Fellow high-tech bellwether Apple Computer beat expectations by 2 cents per share, while Yahoo's earnings were in line with estimates. Yahoo closed down 41 cents at $48.39, while Apple rose 8 cents to close at $24.20.

Earlier in the day, investors were buoyed by positive economic data when the Commerce Department said the trade deficit shrank to $38 billion in December, its lowest level in a year and lower than Wall Street analysts expected, while the Federal Reserve reported that the economy continued to strengthen from late November to the early part of this year. In addition, the Labor Department said wholesale prices rose by 0.3% in December, suggesting inflation is still in check.