Upbeat corporate earnings lifted the markets to a higher close with the Dow surging 168 points to 18,127. Nasdaq climbed 34 points to 5,026.

On the upside

Rally Software Development (NYSE: RALY) widened losses for the fourth quarter but revenue rose to top expectations and the company forecast current quarter revenue ahead of estimates.

NXT-ID's (Nasdaq: NXTD) biometric payment Wocket smart wallet will be featured in 2015 "I Want That" International CES Special to be aired tonight on the DIY Network.

Shares of Herbalife (NYSE: HLF) rose again after a judge dismissed on Monday a shareholder lawsuit alleging that Herbalife operated a pyramid scheme.

On the downside

Zafgen (Nasdaq: ZFGN) widened losses for the fourth quarter.

Shares of Weight Watchers (NYSE: WTW) fell again.

Renewed bankruptcy concerns weighed down shares of Mechel (NYSE: MTL).

In the broad market, advancing issues outpaced decliners by a margin of nearly 4 to 1 on the NYSE and by a margin of nearly 3 to 2 on Nasdaq. The broader S&P 500 climbed 18 points to 2108. Bitcoin eased a fraction to $259.