US STOCKS-Major indexes climb more than 1 pct on earnings

* Latest earnings, outlooks restore recovery optimism

* Intel, Yahoo, United Technology among big gainers

* Spanish auction eases debt contagion worry

* Indexes up: Dow 1.3 pct, S&P 1.2 pct, Nasdaq 1.7 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to open)

By Chuck Mikolajczak

NEW YORK, April 20 (Reuters) - U.S. stocks jumped at the open on Wednesday, with each of the major indexes up more than 1 percent, as a raft of solid earnings and profit outlooks bolstered optimism about the economic recovery.

Intel Corp jumped 7.2 percent to $21.27 after forecasting quarterly revenues well above Wall Street's estimates, easing fears the world's largest chipmaker is struggling as growth in personal computer sales slows. For details, see [ID:nN19291560]

Yahoo Inc advanced 3.9 percent to $16.75 after the Internet company said an important partnership with Microsoft Corp is taking longer than expected to pay off, but the company posted quarterly earnings that topped Wall Street targets. [ID:nN18239254]

"You've got not just the reaction to the better-than-expected earnings but a change in sentiment from what has been seen as a possibly very disappointing earnings quarter, particularly for technology," said Rick Meckler, president of LibertyView Capital Management in New York.

The Dow Jones industrial average <.DJI> gained 159.47 points, or 1.30 percent, to 12,426.22. The Standard & Poor's 500 Index <.SPX> rose 16.09 points, or 1.23 percent, to 1,328.71. The Nasdaq Composite Index <.IXIC> advanced 47.36 points, or 1.73 percent, to 2,792.33.

But IBM fell 1.2 percent to $163.27 and was the sole decliner on the Dow after reporting a drop in signings of new business at its global services division during the first quarter. However, IBM's profit and revenue came in above analysts' projections. [ID:nN1959077]

The S&P information technology sector <.GSPT> climbed 1.8 percent.

Adding to the positive tone, Spain attracted solid demand at a bond sale on Wednesday, easing concerns it could be swept up by the debt contagion of some other euro zone members. [ID:nLDE73J14X]

United Technologies Corp rose 4.6 percent to $86.17 after the diversified manufacturer posted a 16.9 percent rise in quarterly profit and raised its outlook for the year, boosted by strong demand for Carrier air conditioners. [ID:nN20127957] [ID:nN20131601] (Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)