US Stocks were trading higher as better-than-expected earnings from Exxon-Mobil and consumer spending data have managed to offset Egypt concerns.

Dow Jones Index was up 21.99 points, or 0.19 percent, to 11,845.69 and the S&P 500 index rose 4.54 points, or 0.36 percent, to trade at 1,280.88. Meanwhile, Nasdaq gained 0.39 points, or 0.01 percent, to 2,687.28.

Investors have digested strong earnings of oil giant Exxon Mobil (XOM) and better-than-expected consumer spending data.

On the flip side, ratings firm Moody's has downgraded Egypt's government bond ratings to Ba2 from Ba1 and has cut the outlook to negative from stable warning that the escalating political tensions may dent the country's public finances.

Exxon-Mobil recorded its most profitable quarter in the October to December period since the third quarter of 2008 on higher oil prices. The company earned $9.25 billion, or $1.85 a share, in the fourth quarter on sales of $105 billion. The results topped Wall Street forecast of $1.63 a share on revenue of $99.11 billion, according to analysts polled by Thomson Reuters.

Shares of Massey Energy (MEE) were up 12 percent after it agreed to merge with Alpha Natural Resources (ANR) in an $8.5 billion cash and stock deal. Meanwhile, shares of Alpha Energy fell 6 percent.

Shares of NPS Pharma (NPSP) rose more than 24 percent after a late stage study showed that its experimental drug Gattex reduced the need for intravenous fluids in adult short bowel syndrome patients.

Depomed (DEPO) shares jumped 30 percent after United States Food and Drug Administration approved Gralise for the treatment of post-herpetic neuralgia, triggering a milestone payment of $48 million from Abbott (ABT) to Depomed.

On the economic front, consumer spending grew by 0.7 percent in December, while Americans' incomes rose by 0.4 percent. Economists had been forecasting an increase of 0.6 percent in spending and spending and 0.5 percent in incomes.

Among the currencies, euro gained 0.76 percent to 1.37 against the greenback, which fell 0.09 percent against Japanese yen to 82.04.

Crude oil futures fell 21 cents to $99.21 a barrel and gold futures also slipped 12.2 cents to $1,329.50 per troy ounce.

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