Giddy Consumer, Earnings Keep Stocks Hopping

Abbott Labs(ABT Quote) said it earned 65 cents a share in the fourth quarter, also matching the consensus, on a 14.3% increase in total revenue. Abbott shares dipped $1.70, or 3.8%, to $43.25.

And KeyCorp(KEY Quote) earned 55 cents a share in the fourth quarter, ahead of analysts' projections for 53 cents a share. Sales were down about 1%. The shares rose 37 cents, or 1.2%, to $30.29.

Biotech shares led the gainers today; the Amex biotech index was up 3.4% on the day.

In research, Altria(MO Quote) was downgraded by UBS on the basis of valuation. Shares of the company slipped 61 cents, or 1.1%, at $53.64.

Smith Barney upgraded IBM (IBM Quote) to hold from sell, one day after the company posted earnings that were much stronger than expected. IBM stock improved $1.29, or 1.4%, to $95.31.

Goldman Sachs upgraded several names in the wireless sector, including AT&T Wireless (AWE Quote), Sprint PCS (PCS Quote) and Sprint FON (FON Quote). The broker believes AT&T Wireless will be acquired in the near future, and expects investors to focus on further mergers and acquisitions in the sector, rather than fundamentals. AT&T Wireless shares rallied 17 cents, or 1.7%, to $9.98.

Juniper Networks surged $7, or 30.5%, to $29.93, after the company said earnings jumped to 5 cents per share from a penny last year. This beat analysts' expectations by 2 cents, and prompted at least seven research houses to upgrade the stock. Rising in sympathy, Cisco Systems (CSCO Quote) jumped $1.97, or 7.3%, to $29.13, on what looks to be a strong environment for networking stocks.

Morgan Stanley downgraded Johnson & Johnson (JNJ Quote) to underweight from equal weight. The broker expects a dramatic slowdown in revenue growth because of shrinking margins from some of J&J's flagship drugs. The company's shares shed $1.41, or 2.7%, to $50.43.

Looking ahead, the equity market is closed on Monday in observance of Martin Luther King, Jr. day. More than 100 S&P 500 members will report earnings next week.