Stocks mostly higher after Japan jump

Stocks tilted mostly higher on Tuesday as Japan's central bank announced new measures to support growth and Wall Street wondered if the stock market can build on its best weekly gain of the year and climb to a new record.

The Nikkei 225 in Tokyo leaped 3.1% to 14,843.24 after the Bank of Japan said it was doubling the size of its fund to support bank lending and its fund to support economic growth.

U.S. investors were also digesting the release of another disappointing economic report during a period of stormy winter weather. A gauge of manufacturing in the New York region, the so-called Empire State manufacturing index, came in lower than expected at 4.48 in February, down from 12.51 in January and below the estimate of 8.5.

COKE: U.S. soda sales down

In afternoon trading the Dow Jones industrial average was fractionally negative while the Standard & Poor's 500 index and the Nasdaq composite were up 0.2% and 0.7%, respectively.

The Dow could be weighed down by Coca-Cola on Tuesday. The beverage maker reported earnings in line with Wall Street expectations but reported revenues below estimates due to a 1% sales drop in North America caused by a drop in soda sales. In pre-market trading Coke shares were down 1.9% to $38.21.

U.S. markets were closed Monday for the Presidents' Day national holiday. On Friday, U.S. stocks closed higher as the market's recent rally helped cap off the biggest weekly gain of 2014.

Heading into today's trading session, the benchmark S&P 500, which had declined 5.76% through Feb. 3, was within a half of a percentage point of topping its Jan. 15 record high of 1848.38. If the large-company stock index can close at a new high, it would mark an official end to the "pullback" and, perhaps, quell talk of a pending correction, or a drop of 10% or more.

"The S&P 500 had another strong day on Friday, and looks poised to test the recent all-time highs around 1,850," said Schaeffer's Investment Research's senior trading analyst ! Bryan Sapp. The S&P 500 closed Friday at 1838.63, roughly 10 points below its record peak.

In deal news, Dublin-headquartered Actavis said Tuesday it will acquire rival New York-based drug maker Forest Laboratories in a deal valued at approximately $25 billion. News of the deal sent Forest's pre-market shares surging over 30%. Actavis's NYSE-listed pre-market shares leaped 15% before its gains were trimmed to 8%.

FRIDAY: Stocks close with best weekly gains of the year

Benchmark U.S. oil for March delivery was up 35 cents to $100.65 a barrel in electronic trading on the New York Mercantile Exchange. The contract last settled on Friday.

Contributing: Associated Press