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subject Stocks Rise, Financials Help, Oil Slips
By Megan Davies NEW YORK (Reuters) - U.S. stocks climbed on Tuesday, boosted by financial stocks after several banks posted higher fourth-quarter profits, while crude oil prices retreated from a seven-week high, easing worries about steep energy costs. As fourth-quarter earnings season got under way, Bank of America Corp. (BAC.N: Quote , Profile , Research ) , the No. 3 U.S. bank, gained 1.5 percent to $45.56 after it reported a 41 percent rise in fourth-quarter profit. Wells Fargo & Co. (WFC.N: Quote , Profile , Research ) , U.S. Bancorp (USB.N: Quote , Profile , Research ) and National City Corp. (NCC.N: Quote , Profile , Research ) also all gained after reporting increased profits. Meanwhile, oil prices coming off their seven-week highs helped stocks turn around from a lackluster start. U.S. February crude futures slipped 43 cents to $47.95 -- reversing an initial climb to $49.50 as a cold front swept into the U.S. Northeast. The Dow Jones industrial average was up 50 points, or 0.48 percent, at 10,609. The Standard & Poor's 500 Index was up 9 points, or 0.76 percent, at 1,194. The Nasdaq Composite Index was up 14 points, or 0.67 percent, at 2,102. It looks as though the vast majority of all the earnings that came out before the bell were in line or better, with only a couple of misses and the market likes it and is up, said Tom Schrader, managing director, U.S. equity trading, Legg Mason Wood Walker. I think (today's rise is) probably a combination of earnings and oil, but I would put greater emphasis on oil. Among companies reporting, Wells Fargo rose 1.1 percent to $61.36, U.S. Bancorp gained 1.8 percent to $30.75 and National City gained 2.5 percent to $36.10. Dow component 3M Co. (MMM.N: Quote , Profile , Research ) , the maker of Scotch tape and Post-It notes, reported a higher fourth-quarter profit, but its stock fell 2.5 percent to $81.87 after the performance of its display and graphics unit was weaker than some analysts expected. Shares in May Department Stores Co. (MAY.N: Quote , Profile , Research ) shot higher on Tuesday as the resignation of its chief executive prompted analyst upgrades -- and some bid speculation -- on hopes of a turnaround for the company. The stock was up 19 percent at $33.10. Krispy Kreme Doughnuts Inc. (KKD.N: Quote , Profile , Research ) shares climbed 13 percent to $9.84 after the doughnut chain, which is facing a federal accounting probe, replaced its CEO, Scott Livengood. Shares of International Business Machines Corp. (IBM.N: Quote , Profile , Research ) advanced before its quarterly earnings report after the close of trading on Tuesday. IBM rose 0.5 percent to $94.60.
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