Stocks Get Health Care Lift

NEW YORK (TheStreet) -- Blue-chip stocks posted a triple-digit gain Tuesday helped by surging health care stocks just before IBM(IBM) posted better-than-expected fourth-quarter results after the closing bell.

The Dow Jones Industrial Average rose by 116 points, or 1.1%, to 10,725. The S&P 500 improved by 14 points, or 1.3%, at 1150, and the Nasdaq gained 32 points, or 1.4%, to 2320.

IBM said it earned $3.59 a share in the fourth quarter, beating analysts' predictions for $3.47 a share, according to a poll by Reuters. In a highly anticipated announcement, Big Blue said it generated $27.2 billion in revenue compared with a $27 billion consensus Wall Street estimate, raising its full-year outlook along the way. Shares added $2.36, or 1.8%, to $134.14 during the regular session, but pulled back by 1.5% in extended-hours trading.

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Chip stocks gained broadly ahead of the release, as the Philadelphia semiconductor index rose 1.8%.

In other post-close earnings news, train operator CSX(CSX) and tech player Cree(CREE) also beat profit forecasts. But CSX shares were moving 3.2% lower in extended-hours trading after falling short of revenue forecasts. Cree was adding 9.7% after offering an upbeat outlook.

Charles Schwab(SCHW) was falling 3.3% in extended-hours after missing both top- and bottom-line estimates. The broker also added it would sell more shares in an offering.

The broad-based rally during the day's session was led by health care stocks, as investors anticipated a Republican win in the Massachusetts Senate election, which would threaten passage of health care legislation.