IBM Sends Stocks Higher

Macy's (M) fiscal fourth-quarter profit was ahead of what was anticipated despite slumping sales, lifting its shares 7.1%. Discounter Target (TGT) posted a drop in earnings that nonetheless edged past expectations. Its shares rose 3.1%.

RadioShack (RSH) was one of the biggest percentage gainers, soaring 21.5% to $19.13, after the electronics retailer beat analysts' estimates with fourth-quarter income that leaped 20% from last year.

Away from the retail group, Sirius Satellite Radio (SIRI) had a narrower-than-expected loss in its most recent quarter, but revenue came in short of the number analysts wanted to see. Shares reversed early losses to add a penny at $3.05.

CBS (CBS) reported receding fourth-quarter revenue, but the TV-and-radio network's bottom line was above estimates. Shares ended down 0.9%.

Elsewhere, Germany's Siemens (SI) climbed 2.8% after saying it will slash 3,800 telecom jobs and transfer another 3,000 workers as part of a restructuring of its telecom unit.

Shares of Google (GOOG) dropped 4.6% a day after comScore said the search giant suffered a sharp sequential decline in January paid-click search rates, prompting UBS to cut its price target.

Traders were also watching the housing sector in the wake of two new reports on the state of the struggling industry. Research firm RealtyTrac said foreclosure filings were reported on 233,001 properties in January, an increase of 8% from December and up almost 57% from the same month last year.

Separately, the S&P/Case-Shiller home-price index had the steepest decline in its history, revealing that prices in 20 U.S. metropolitan areas sank 9.1% in December. Prices for houses around the country dropped 8.9% in the final quarter of 2007.

Homebuilders' shares were rising. D.R. Horton (DHI) was up 6%, and Toll Brothers (TOL) was gaining 5.5%. Hovnanian (HOV) was up 9.3%.

Yared said the foreclosure numbers weren't much of a surprise, and he believes the housing market contraction "still has a good six months to go."

But, he added, "there are some bargains out there in the housing arena, and buyers are really starting to lick their chops."

Among commodities, crude oil jumped $1.65 to a record close of $100.88 a barrel. Gold futures climbed $8.40 to $948.90 an ounce.

Overseas markets were mostly higher. In Asia, Hong Kong's Hang Seng jumped 1.9%, though Japan's Nikkei 225 was off 0.7%. Among European bourses, London's FTSE 100 and Germany's Xetra Dax each added 1.5%.

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