US stocks closed higher for the fourth day running after a smaller than expected rise in consumer prices eased concerns that the Fed would lift benchmark interest rates.

The Federal Reserve raised the discount rate, the rate at which it lends money to banks, by 25 basis points to 0.75% last night, however, the Fed dampened expectations that the adjustment will lead to a rise in the benchmark lending rate any time soon.

Dow Jones closed 9 better at 10,402 for a 3% gain on the week. The broader based S&P 500 gained 2 at 1,109. The tech heavy NASDAQ Composite was up 2 points to 2,243.

The Consumer Price Index rose by just 0.2% in January, further calming nerves.

Computer giant Dell is one of the stocks dragging down the NASDAQ after it released results after the bell yesterday. The company reported a 5% drop in fourth-quarter earnings to $334m, or 17c share, compared with $351m, or 18c per share a year ago. Underlying earnings were 28c per share.

Sales rose 11% to $14.9bn from $13.4bn last year, beating analysts' forecast of $13.85bn. However, gross profit margin was not as healthy as anticipated as a result of higher component costs and the need to discount models in order to shift PCs.

Solar power module maker First Solar is another tech stock spending a spell in the shadows after it disappointed the market by reiterating 2010 sales and profits guidance when investors had been hoping for an upgrade.

Apollo Group, which provides higher education programmes for working adults, was another stock hammered for providing guidance figures that failed to come up to snuff. The company said underlying second quarter earnings per share (EPS) are likely to fall within the range of 79 to 84 cents, whereas the market had been forecasting second quarter EPS of 93 cents.

Bid speculation is driving up the price of drilling fluids provider Smith International. Press reports suggest that oilfield services firm Schlumberger is in negotiations to buy the company.

A broker upgrade has pepped up the share price of stockbroker Charles Schwab. Goldman Sachs has raised its rating on the stock to 'neutral' from 'sell' in the wake of the Fed's discount rate rise, saying the company should do well in a higher interest rate environment.

Tax filings software developer Intuit beat analysts' forecasts with its second quarter profits while department store JC Penney was another company confounding the market as its fourth quarter net income fell less than feared.

Shares in CBS were hit after the broadcaster posted a fall in fourth quarter earnings.

Light crude climbed above the $80 per barrel level again, gaining just over $1 on the day.

S&P 500 - Risers
Smith International Inc. (SII) $37.70 +13.04%
Intuit Inc. (INTU) $32.73 +7.95%
Penney J C Co Holdin (JCP) $27.66 +6.55%
Juniper Networks Inc. (JNPR) $27.46 +5.86%

S&P 500 - Fallers
First Solar Inc. (FSLR) $115.75 -8.35%
Apollo Group Inc. (APOL) $56.93 -7.36%
Dell Inc. (DELL) $13.44 -6.85%
Goodyear Tire Rubber (GT) $13.46 -5.87%

Dow Jones I.A - Risers
Pfizer Inc. (PFE) $17.99 +1.47%
Du Pont E I De Nemours and Co. (DD) $34.03 +1.22%
Boeing Co. (BA) $63.59 +1.11%
Caterpillar Inc. (CAT) $58.25 +0.76%

Dow Jones I.A - Fallers
Johnson & Johnson (JNJ) $63.81 -1.12%
JP Morgan Chase & Co. (JPM) $40.03 -0.94%
Microsoft Corp. (MSFT) $28.71 -0.89%
Alcoa Inc. (AA) $13.51 -0.73%

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