U.S. Futures Edge Higher

By Jonathan Cheng NEW YORK—U.S. stocks edged up on a mix of largely positive corporate news, one day after a rally evaporated in late trading. The Dow Jones Industrial Average gained 26 points at 11385 in early trading, while the Standard & Poor's 500-stock index added five points to 1229 and the Nasdaq Composite gained 13 points to 2611. Tech stocks led the gainers, while advancers among the smaller regional banks lifted the financial sector. Lincoln National rose 4.7%, Regions Financial gained 2.8% and Zions Bancorp added 1.5%. Offsetting the advancers were consumer discretionary stocks, which were weighed by a 1.9% decline at McDonald's. The fast-food chain led declines among Dow components after reporting same-store sales rose 4.8% in November, driven by its McRib sandwich, but fell short of analysts' estimates. The dollar extended its gains against other major currencies. The euro was flat while the greenback rose 0.7% against the yen to trade at 84.03 yen to the dollar. Commodity prices weakened as the dollar rose, with gold futures dropping more than 1% to below $1,400. Treasury yields continued to rise following the U.S. deal to extend tax cuts, pushing the yield on the benchmark 10-year note to 3.223%. A $21 billion auction of 10-year notes will be closely watched at 1 p.m. EST. With little on the economic calendar, investors focused on news in the corporate sector, where Costco Wholesale slipped 0.6% after the retailer's first-quarter earnings rose 18%, beating market expectations, on a sales increase of 11%. Texas Instruments was off 0.5% after narrowing late Tuesday its earnings and revenue forecasts for the fourth quarter, though its guidance remains in line with Wall Street forecasts. Fortune Brands gained 1.9% after the company said it would split itself into three businesses. The company said it will spin off its home-and-security business and spin off or sell its golf division, while continuing to run its liquor business as a publicly-traded company. Johnson & Johnson edged down 0.1% after the health-care products giant formally launched its €1.75 billion ($2.32 billion) takeover offer for Dutch biotechnology company Crucell NV. J&J holds about 17.9% of Crucell shares, and its bid is for the shares outstanding. U.S.-listed shares of Crucell edged up 0.3%. Home Depot gained 0.9% after the home-improvement retailer nudged its expected 2010 earnings and sales growth estimates slightly higher. The company is planning to spend billions more on stock repurchases. Starwood Hotels & Resorts slipped 0.6% after the hotel chain said it expects earnings per share to grow by between 35% and 42% a year for the next three years. Safeway gained 2.6% after the grocery chain added $1 billion to its stock-buyback effort, more than doubling the $800 million already available under prior authorizations. Netflix fell 2.7% after longtime chief financial officer Barry McCarthy said he would step down. The company also separately announced a new licensing agreement with Walt Disney. European markets recorded broad gains, pushing the Stoxx Europe 600 index up 0.7% in intraday trading. Japan's Nikkei Average closed up 0.9% as the weaker yen helped boost export stocks. But in Shanghai and Hong Kong, shares tumbled 1% and 1.4%, respectively. Write to Jonathan Cheng at jonathan.cheng@wsj.com