Financials drive Wall St higher; Amazon up late

By Rodrigo Campos

NEW YORK (Reuters) - U.S. stocks rose on Thursday after quarterly results from insurer Travelers and regional bank PNC Financial gave a boost to financial stocks.

Financials were among the top gainers after insurer Travelers Cos Inc (TRV.N) posted gains after it raised its full-year outlook and regional bank PNC Financial Services Group Inc (PNC.N) shares jumped 12.7 percent to $50.65 on far better-than-expected quarterly earnings.

Adding to the positive tone, New York Fed President William Dudley said the Federal Reserve may not lose money on the emergency programs it put in place to fight the financial crisis.

The S&P financial index .GSPF added 2.9 percent and the KBW Bank Index .BKX jumped 3.4 percent.

Solid earnings from several companies, including Dow components 3M (MMM.N), AT&T (T.N) and McDonald's Corp (MCD.N) lent credence to the idea that corporate profitability has stabilized.

After the closing bell, online retailer Amazon.com (AMZN.O) posted earnings above expectations and its shares shot up almost 15 percent to $107.38 in extended trading.

The market has been supported by consistent news of better- than-expected earnings and fairly good guidance, according to Robert Lutts, chief investment officer of Cabot Money Management in Salem, Massachusetts.

"Regional banks came out with OK results. They talked about deterioration in assets definitely at a slower pace and there were indications some parts of the loan books were stabilizing and improving," Lutts said.