Despite rising consumer prices and record oil prices, the markets reversed direction to close higher with the Dow climbing 90 points to 12,427. Nasdaq rose 21 points to 2327.

On the upside

Although Chuck E. Cheese operator CEC Entertainment (NYSE: CEC) swung to a loss for the fourth quarter, the company forecast upbeat first quarter as well as 2008 results.

Although fourth quarter earnings slipped for Oil States International (NYSE: OIS), the results surpassed expectations.

UBS analyst David Goldberg upgraded Meritage Homes (NYSE: MTH) for the homebuilder's impressive ability to produce free cash flow.

On the downside

Fourth quarter earnings fell for DealerTrack Holdings (Nasdaq: TRAK) prompting the company to forecast 2008 results below expectations.

Spetranetics (Nasdaq: SPNC) disappointed with fourth quarter earnings that fell short of estimates.

While Tween Brands (NYSE: TWB) reported higher fourth quarter earnings, revenue missed expectations.

In the broad market, advancing issues outpaced decliners by a margin of nearly 5 to 3 on the NYSE and by more than 9 to 7 on Nasdaq. The Russell 2000 which tracks small cap stocks gained 8 points to 710.