Financials Take Stocks Higher

Corporate earnings from several Dow components and big tech names started off a busy week for quarterly results. McDonald's (MCD Quote) exceeded analysts' earnings targets by 2 cents, but a slowdown in December same-store sales pressured shares. McDonald's ended down $3.03, or 5.6%, to $51.07.

Fellow Dow member Verizon (VZ Quote) posted quarterly profits that were in line with estimates, and Corning (GLW Quote) edged past expectations for the fourth quarter and lifted its forecast. Verizon gained 0.9% to $38.11, and Corning rose 3.3% at $23.10.

Halliburton (HAL Quote) said fourth-quarter profits rose nearly 5% from a year ago to beat the Thomson First Call average estimate, while revenue also topped the consensus. Halliburton advanced 1.4% to $33.55.

After the closing bell, earnings reports from chipmaker SanDisk (SNDK Quote), Dow component American Express (AXP Quote) and homebuilder Meritage Homes (MTH Quote) were expected.

U.S. Treasury prices were slipping. The 10-year note was down 11/32 in price, pushing the yield up to 3.60%. The 30-year bond was lower by 15/32 in price, yielding 4.29%.

Commodity prices were higher. Crude oil gained 28 cents to $90.99 a barrel, and gold futures jumped $16.40 to $927.10 an ounce.

Among analyst upgrades, Bear Stearns lifted its rating for Dow member Caterpillar (CAT Quote) to outperform from peer perform, and UBS raised Merck (MRK Quote) to buy from neutral. Caterpillar gained 3.5% to close at $68.21, and Merck finished up 3.1% to $49.25.

Meanwhile, Citigroup upgraded cereal makers General Mills (GIS Quote) and Kellogg (K Quote) to buy from hold. General Mills was higher by 2.4% at $54.19, and Kellogg rose 4.1% to $49.54.