U.S. stocks rose after members of European Union agreed to tighten fiscal ties

U.S. stocks rose after members of European Union agreed to tighten fiscal ties, as stock indexes were poised to wrap up January with historic gains.
The Dow Jones Industrial Average gained 63 points, or 0.5%, to 12718 in early trading. The Dow was poised to notch its largest January point gain in its history, and best percent gain since 1997.
The Standard & Poor's 500-stock index climbed 8 points, or 0.6%, to 1320 and the Nasdaq Composite advanced 17 points, or 0.6%, to 2829. The S&P 500 was also on track for the largest January point gain in history and best percentage rise since 1997, while the Nasdaq Composite was in line for the best January point and percentage performance since 2001.
Tuesday was active with quarterly earnings reports. Among Dow components, Pfizer gained 0.8% after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped expectations, but lowered its 2012 earnings outlook slightly to reflect unfavorable changes in foreign exchange rates.
Exxon Mobil fell 0.9%, the weakest shares on the Dow, after reporting fourth-quarter earnings edged up 1.6%, in line with estimates, as high oil prices offset impacts from lower production and weak refining margins.
European markets were broadly higher, with the Stoxx Europe 600 rallying 1.1%, after leaders of 25 of the 27 European Union governments agreed on a pact to move closer to fiscal union, and signed off on a permanent bailout fund for the euro zone. Talks between Greece and its private creditors over a debt restructuring continued, and officials said an accord was expected in the "coming days." Separately, euro-area unemployment was at a 13-year high of 10.4% in December, unchanged from November's revised rate and in line with expectations.
On the economic front, U.S. home prices fell again in November, according to the Standard & Poor's Case-Shiller home-price indexes, which reported Tuesday that the majority of metropolitan markets covered by its indexes suffered declining home prices. For November, the Case-Shiller index of 10 major metropolitan areas and the 20-city index both fell 1.3% from the previous month.
Meanwhile, a reading on fourth-quarter compensation for U.S. workers increased modestly in the final three months of 2011. The employment cost index rose 0.4% in October through December, while economists surveyed by Dow Jones Newswires had expected an increase of 0.5% in the fourth quarter.
A measure of manufacturing activity in the Chicago region came in lower than expected. The Chicago PMI for January was 60.2, compared with a forecast 62.2.
Still up Tuesday morning is consumer confidence data are scheduled for release at 10 a.m.
Elsewhere, RadioShack plunged 29% after the consumer electronics retailer reported disappointing preliminary fourth-quarter earnings and a drop in gross margins, citing significant declines in its Sprint business. The company also said it decided to suspend share repurchases "for the near term."
U.S. Steel added 4.7% after the company reported a wider-than-expected fourth-quarter loss, but said it expected a significant improvement in current quarter results.
Apple rose 0.7% after the company tapped John Browett, chief of Dixons Retail PLC, one of Europe's largest electronics retailers, as its new head of retail, filling its most high-profile vacancy with a rare company outsider.
Archer Daniels Midland fell 2.3% after the agribusiness company's fiscal second-quarter earnings plummeted 89% tied to a large writedown related to an Iowa facility and the company experienced weakness in three of its major segments.
United Parcel Service edged up 0.8% after the company reported better-than-expected fourth-quarter earnings and provided an upbeat 2012 outlook.
Eli Lilly gained 0.8% after the drug maker exceeded fourth-quarter earnings and revenue expectations and confirmed its 2012 outlook.
Biogen Idec rose 2% after the biopharmaceutical company's fourth-quarter results exceeded forecasts, though its 2012 earnings outlook fell short.
Asian bourses were mostly higher, with Japan's Nikkei Stock Average rising 0.1% after better-than-expected industrial production data for December, and with China's Shanghai gaining 0.3%.
Gold futures gained 0.9% to $1749.20 an ounce, while crude oil futures climbed 2.2% to $101.00 a barrel. The U.S. dollar lost ground against the euro and the yen.