Stocks Higher After Budget Talk, Data

Stocks rose Tuesday as investors divided their attention between autos and pending home sales data and chatter in Washington.

The Dow Jones Industrial Average climbed 111.32 points to 10296.85. The S&P 500 gained 14.13 points to 1103.31 and the Nasdaq advanced 18.86 points to 2190.06.

Financials tapered off after a higher start, with the KBW Bank index ultimately advancing only 0.2%. JP Morgan Chase (JPM) and Goldman Sachs (GS) each stood up more than 2%, however.

The gains came as investors turned their focus to Washington. Treasury Secretary Timothy Geithner testified before the Senate Finance Committee today on the Obama administration's $3.8 trillion budget. Paul Volcker, the chair of the President's Economic Recovery Advisory Board, also spoke to the Senate Banking Committee on proposed new restrictions on the size and scope of banks.

More than half of the S&P 500 companies in terms of market capitalization have now reported earnings. When earnings estimates for the companies yet to report are combined, the blended growth rate for the index is expected to be up almost 305% compared with the fourth-quarter of 2008, wrote Bill Stone, chief investment strategist at PNC Wealth Management. That’s due largely to financials, however. When financials are factored out, the blended growth rate is expected to be 11%. 

A day after Exxon Mobil's (XOM) stronger-than-forecast fourth quarter, BP PLC (BP) fell in London trade after its quarterly profit missed estimates after a weak performance in its refining unit. Europe's largest oil major also said that 2010 production may fall after a relatively benign hurricane season in 2009.

In other news, Ford (F) reported a 24% rise in U.S. sales in January, while Toyota (TM) sales fell 16% after a massive sales suspension and recall related to faulty accelerators. Nissan and General Motors said their sales rose 16% and 14%, respectively.

Elsewhere, Barnes & Noble Inc. (BKS) was up more than 9% after billionaire Ron Burkle suggested he wants to own more than a third of the book retailer and criticized investment restrictions set up by the company.

Overseas, Australia unexpectedly kept interest rates unchanged at 3.75%--economists were expecting a hike--though the country's central bank said it could raise rates further. That news helped the S&P/ASX 200 rise 1.8%, and the Nikkei 225 climbed 1.6% after Toyota Motor's plan to fix faulty pedals.

The FTSE In London and Dax in Frankfurt rose 0.7% and 1%, respectively.

Dow Jones Newswires contributed to this report.