Oil prices retreated as the nation's oil inventory rose to lift the markets to a modestly higher close with the Dow climbing 43 points to 12,763. Nasdaq soared 28 points to 2405.

On the upside

Level 3 Communications (Nasdaq: LVLT) narrowed first quarter losses as revenue topped estimates.

Second quarter earnings for Skyworks Solutions (Nasdaq: SWKS) rose to surpass estimates as sales climbed prompting the semiconductor maker forecast third quarter results ahead of expectations.

Health Management Associates (NYSE: HMA) reported sharply higher first quarter earnings that more than doubled due to a significant gain.

On the downside

South Financial Group (Nasdaq: TSFG) blamed impairment charges and credit losses for a first quarter loss of $201.3 million.

Although Infinera (Nasdaq: INFN) swung to a profit for the first quarter, the digital optical communications systems provider forecast second quarter results below estimates.

Delphi Financial Group (NYSE: DFG) reported lower first quarter earnings that fell short of estimates as investment income dropped prompting the company to trim its full year outlook.

In the broad market, advancing issues outpaced decliners by a margin of more than 10 to 9 on the NYSE while decliners edged out advancers by nearly 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks gained 4 points to 708.