Strong results in the banking sector lifted the markets at the opening bell with the Dow up 57 points to 11,296 while Nasdaq jumped 12 points to 2297 after half an hour of trading. Meanwhile, the Philadelphia Fed's regional manufacturing survey posted a sharper than expected decline.

On the upside

JPMorgan Chase (NYSE: JPM) reported profits that fell by more than half due to significant loan losses, but the results were better than expected.

Ohio-based Huntington Bancshares (Nasdaq: HBAN) reported higher 2nd quarter earnings, but lowered its full-year forecast setting aside reserves for loan losses.

Shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) rallied again on hopes that they would remain viable companies as along as a segment of the banking industry continued to perform.

On the downside

Coca-Cola (NYSE: KO) posted lower profits on higher revenues after the world's biggest beverage company took a one-time charge to cover its acquisition of Glaceua's Vitaminwater for $4.1 billion last June.

Online auction service provider EBay (Nasdaq: EBAY) posted a strong 2nd quarter report, but the company offered a mixed outlook for the rest of the year.

Bank of New York Mellon (NYSE: BK) reported smaller profits for the 2nd quarter. The recently merged company also took a charge related to an April court ruling involving leveraged leases.

In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by a margin of 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks rose 1 point to 688.