US stocks rose early Thursday, putting the S&P on track for its third straight advance after Bank of America and Morgan Stanley reported earnings and as strong demand at European bond auctions eased Eurozone debt concerns.
The Dow Jones Industrial Average gained 16.12 points, or 0.13%, to 12,595.07. The Standard & Poor's 500 Index rose 3.19 points, or 0.24%, to 1,311.23. The Nasdaq Composite Index added 12.03 points, or 0.43%, to 2,781.74.
Bank of America Corp climbed 5.2% to $7.14 after it reported a fourth-quarter profit, reversing a year-earlier loss, boosted by one-time items and lower expenses for bad loans.
Fellow financial Morgan Stanley jumped 6.2% to $18.45 after the Wall Street bank posted a quarterly loss but still managed to top analysts' expectations.
Financial shares have rallied since the start of the year. The S&P financial index is up more than 7% for 2012, helping to push the benchmark S&P 500 index up 4%. The index was up 0.6% in early trading.
In a sign that investor nervousness over the Eurozone's debt crisis was easing, Spain and France both drew strong demand at government debt auctions.
"It's a combination of no horror stories out of Europe and it is earnings season. We are up and down with the different earnings releases, of course, but in general they are expected to be good," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.
"Overall, earnings are expected to be positive and a positive influence for the market."
The Nasdaq got a boost from eBay Inc, which reported better-than-expected results after the close on Wednesday. The stock was up 2.5% to $31.07.
Talks between Greece and its creditors were proceeding, sources said, but much more progress was needed before a deal could be reached on a bond swap.
New data generally supported the view the US economy continued to improve at a moderate pace. New jobless claims dropped to a near four-year low last week and consumer prices showed inflation remained in check, although housing starts dipped.
The Philadelphia Federal Reserve Bank's January business activity survey was due at 10 am EST (1500 GMT).
After the close, quarterly reports are due from technology bellwethers Google Inc, International Business Machines Corp, Intel Corp as well as Microsoft Corp.
