Alcoa said demand for aluminum, used in cyclical industries such as aerospace and auto manufacturing, would increase in 2012. The company reported a loss excluding one-time items that was in line with expectations, but revenue exceeded Wall Street estimates.

Still, the stock could not hold earlier gains and turned flat to slightly negative as the day progressed.

Also in earnings, integrated circuit developer Cirrus Logic said it expects to show revenue growth of 28 percent for the quarter on strong demand. Stifel Nicolaus raised the company to a buy.

Yoga-wear manufacturer Lululemon boosted its outlook as well due to an increase in inventory, sending its shares sharply higher.

Juniper Networks saw its shares wobble after it lowered guidance due to weakening network router demand from service providers.

Goodyear Tire fell after the company delivered a downbeat presentation at the Deutsche Bank Global Auto Industry Conference.

Tiffany also lowered its outlook , with the luxury retailer citing disappointing demand during the holiday season.

The worst news of the day, though, came for WebMD, which saw its CEO resign and an end to takeover talks, all while the company lowered its outlook.

Small-caps, which do more business domestically and thus are better insulated from geopolitical tumult, helped lead the rally.

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