NEW YORK (

TheStreet

) - Stocks finished modestly higher Tuesday as buying interest in the capital goods and materials sectors outweighed an earnings miss from

Citigroup

(C) - Get Report

and concerns about the health of

Apple

(AAPL) - Get Report

CEO Steve Jobs.

The

Dow Jones Industrial Average

rose 51 points, or 0.4%, to close at 11,838, its highest level since June 2008. The

S&P 500

edged up 1 point, or 0.1% to settle at 1,295, and the

Nasdaq Composite

tacked on about 11 points, or 0.4%, to finish at 2,766.

Boeing

(BA) - Get Report

,

Caterpillar

and

Alcoa

(AA) - Get Report

led the Dow higher.

Boeing said it now expects to deliver its 787 aircraft in the third quarter. The market had already priced in the delay and the stock rose 3% to $72.26 in afternoon trades.

Breadth within the Dow was positive with 20 of its 30 components closing higher. The blue-chip index has now risen in four of the last five sessions, and is up 2.3% so far in 2011.

After the bell,

IBM

(IBM) - Get Report

said revenues rose 7% to $29 billion, adjusting for currency. Profits rose 9% to $5.3 billion which translated into earnings of $4.18 per share, beating Wall Street's projection for earnings of $4.08 per share on revenue of $28.26 billion. Shares were rising 2.5% in extended trading.

Apple blew past earnings estimates as well. Earnings came in at $6.43 per share, more than $1 higher than Wall Street's consensus view. Revenues jumped to $26.7 billion vs. an average analysts' estimate of $24.38 billion. The stock was up 3% to $350.63 in aftermarket trading.

>>Apple, IBM earnings Live Blog

Apple shares dropped more than 2% to $340.65 in regular trading on news that

CEO Steve Jobs' would take his second medical leave of absence in two years.

Analysts reacting to the news

, however, remained optimistic in their long-term outlook for the stock, despite the near-term concerns about Jobs' condition. There were no downgrades on the news.

"Mr. Jobs' health wellness profile may not be what investors prefer, but we point out that Apple's strategic initiatives have not been derailed by past medical leaves," JP Morgan analyst Mark Moskowitz wrote in a research note Tuesday.

The financial sector was weak Tuesday with

Bank of America

(BAC) - Get Report

among the Dow's biggest laggards following disappointing results from

Citigroup.

Citi's stock closed down 5.3% to $4.86 after it missed analysts' expectations with fourth-quarter earnings of 4 cents a share and revenue of $18.4 billion. According to

Briefing.com

, Wall Street had been looking for a profit of 8 cents a share, and revenue of $20.4 billion.

"The news today about Citigroup puts a tremendous amount of uncertainty around banks reporting this week," said Bob Enck, CEO of Equinox Fund Management.

Goldman Sachs

(GS) - Get Report

and

Wells Fargo

(WFC) - Get Report

are scheduled to report their quarterly results ahead of Wednesday's opening bell and Bank of America is slated to report early Friday.

In other news, the market will be watching for headlines coming out of Chinese President Hu Jintao's meetings with President Barack Obama during Jintao's four-day visit to the United States.

"China is a huge trading partner of ours, so any significant changes in Chinese policy would have a huge impact on our economy. However, I will be very surprised if President Hu leaves with any changes made," Equinox Fund's Enck said.

Hong Kong's Hang Seng shed 0.01% while Japan's Nikkei added 0.2%. London's FTSE gained 1.2% and the DAX in Frankfurt rose 0.9%.

Volume reached 1.22 billion on the

New York Stock Exchange

and 2.07 billion on the Nasdaq. Breadth was positive on the Big Board, where 1,626 advancers outpaced 1,374 decliners, but negative on the Nasdaq, which saw losers exceed winners, 1,369 to 1,278.

Earlier on Tuesday, the Federal Reserve Bank of New York said the Empire State manufacturing survey rose to 11.92 in January, from December's downwardly-revised reading of 9.89. According to Briefing.com, economists had expected the survey to come in at 12, from December's initial reading of 10.57.

The National Association of Home Builders' housing market index came in at 16 for January, or unchanged from December's reading, as economists had expected.

In other earnings news,

Delta Air Lines

(DAL) - Get Report

swung to a fourth-quarter adjusted profit of 19 cents a share on sales of $7.8 billion. Analysts had been anticipating earnings of 24 cents a share on sales of $7.7 billion. The stock plunged 8.2% to $11.70.

Financial services company

Comerica

(CMA) - Get Report

agreed to acquire

Sterling Bancshares

(SBIB)

in a deal that values Sterling at $10 a share, or $1.03 billion. Comerica's stock declined 8.3% to $38.74 while Sterling's stock soared 16% to $8.93.

Shares of

Total Systems Services

(TSS) - Get Report

surged 6.3% to $17.45 following an upgrade from Credit Suisse to outperform.

Shares of

Symantec

(SYMC) - Get Report

, gained 4% to $18.22 after Deutsche Bank raised its rating on the stock to a buy.

Materials stocks were rising with

Titanium Metals

(TIE)

and

Allegheny Technologies

(ATI) - Get Report

among prominent gainers, gaining 4.7% and 5.4% respectively.

Mylan

(MYL) - Get Report

saw its shares jump 4.5% to $23.83 after it received regulatory approval for the generic version of

Bayer's

Precose tablets to treat diabetes.

Shares of

NVIDIA

(NVDA) - Get Report

fell 2.5% to $23.03 following a downgrade by BMO Capital Markets to neutral.

Shares of

Cree

(CREE) - Get Report

plunged 14% to $8.69 in aftermarket trading. The company reported revenue of $256 million and earnings per share of 55 cents, below the Street consensus revenue figure or $276 million, and consensus call for 58 cents per share earnings.

In commodity markets, the March crude oil contract fell 26 cents to settle at $92.31 a barrel. The February

gold contract was up by $7.7 to settle at $1,368.2 an ounce.

The dollar weakened against a basket of currencies with the dollar index down by 0.5%. The benchmark 10-year Treasury note fell 10/32, lifting the yield to 3.368%.

.

-- Written by Melinda Peer and Shanthi Bharatwaj in New York

.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.