U.S. stocks rallied to end on a sharply higher note, as a flurry of domestic economic reports and upbeat manufacturing data from Europe boosted sentiment.
The Dow industrial average rallied 0.66 percent to finish at 12,716.46. The Nasdaq Stock Market advanced 1.22 percent to end at 2,848.27. Standard and Poor's 500 gained 0.89 percent to close at 1,324.08 on Wednesday.
On the economic front, January's U.S. ISM report showed that PMI registered 54.1 percent, up 1 percentage point from 53.1 percent in December, while a Commerce Department report showed that total construction activity advanced 1.5 percent in December, recording its fifth consecutive monthly gain.
U.S. private sector added 170,000 jobs in January, down from a downwardly revised 292,000 in December, according to the ADP National Employment Report.
Meanwhile, the euro-zone purchasing managers index (PMI) advanced to 48.8 in January from 46.9 in December. The PMI for Germany came in at 51 in January from 48.4 in the prior month. The U.K. PMI grew to 52.1, an eight-month high, from 49.7.
Hot Stocks Of The Day: (QCOM, EA, JDSU, WHR, AOL, DNDN)
In corporate news, Qualcomm Inc. (NASDAQ: QCOM) rose 3.6 percent to $61.73 in extended trading after the chip maker's first quarter earnings beat expectations and the company raised its 2012 forecast. The company posted non-GAAP EPS of 97 cents, topping Wall Street projections of 90 cents. Revenue of $4.7 billion also topped consensus of $4.58 billion. It now sees 2012 non-GAAP EPS of $3.55 to $3.75 from prior view of $3.42 to $3.62. The company lifted revenue forecast to $18.7 billion - $19.7 billion from $18.0 billion - $19.0 billion. Analysts expect earnings per share of $3.59 on revenue of $18.5 billion. Qualcomm also guided second-quarter above consensus.
Electronic Arts Inc. (NASDAQ:EA) dropped 2.6 percent to $17.95 in extended trading after game software developer guided fourth quarter below consensus. It expects earnings per share of around $0.10 to $0.20 on revenue between $925 million and $975 million on a non-GAAP basis. Analysts expect earnings per share of $0.29 on revenue of $983.22 billion.
JDS Uniphase Corp. (NASDAQ:JDSU) soared 10 percent to $14.40 in extended trading following its better-than-expected quarterly numbers. The provider of communications test and measurement products earned 15 cents a share on a non-GAAP basis, while Wall Street expected 10 cents a share. Net revenue was $413.1 million, versus expectations of $390.9 million.