* Portuguese bond sale sees strong demand
* JPMorgan could set a 75 cent to $1 dividend
* Wells Fargo raises U.S. bank sector to "overweight"
* Indexes up: Dow 0.44 pct, S&P 0.44 pct, Nasdaq 0.22 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to morning trading, changes quote)
By Rodrigo Campos
NEW YORK, Jan 12 (Reuters) - U.S. stocks rose on Wednesday after a healthy bond sale in Portugal and signs of strength in the U.S. banking sector.
European shares rallied, led by banks, on hopes euro-zone finance ministers would beef up the European Union's rescue fund and after Portugal sold 1.25 billion euros ($1.62 billion) to strong demand. Lisbon's borrowing costs fell on the 10-year issue but rose in the five-year. For details see [ID:nLDE70B131].
"We've got good news out of Europe, a pretty receptive (Portuguese) auction and at least through the market close in Europe, we're going to see a nice tailwind here," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
The euro rose 0.5 percent against the U.S. dollar.
JPMorgan Chase & Co
"They're generating a lot of cash flow, and (it shows) one of our leading banks is in a powerful position," said Ablin. "It bolsters confidence whether you're a holder of JPMorgan or not."
Adding to the positive sentiment, Wells Fargo raised the U.S. bank sector to an "overweight" rating.
The Dow Jones industrial average <.DJI> gained 51.62 points, or 0.44 percent, to 11,723.50. The Standard & Poor's 500 Index <.SPX> rose 5.67 points, or 0.44 percent, to 1,280.15. The Nasdaq Composite Index <.IXIC> added 6 points, or 0.22 percent, to 2,722.83.
The Fed will release its Beige Book of regional economic conditions at 2 p.m. [1900 GMT].
Shares of ITT Corp