Last Updated: January 26th, 2009: 12:20 PM ET---Although off their session highs, the major US equity indices were able to shrug off the morning's disappointing results from Caterpillar (NYSE:CAT) and are currently sporting solid gains aided by strength in the financial sector and better-than-expected results from McDonald's (NYSE:MCD). Dow component McDonald's (NYSE:MCD) reported its fourth-quarter net income fell 23% mostly due to a tax benefit a year ago. The company earned $985.3 million, or 87 cents per share, down from $1.27 billion, or $1.06 per share during the year-ago period when it had the previously mentioned 33-cent tax benefit. Excluding that one-time item, however, the company earned 73 cent per share during that year-ago period. Analysts, on average, were expecting a profit of 83 cents per share. The world's largest construction equipment maker and another Dow component Caterpillar (NYSE:CAT) reported its fourth quarter net income fell to $661 million, or $1.08 per share, down from $975 million, or $1.50 a year earlier. Analysts, on average, were projecting a profit of $1.30 per share. In addition, the Illinois-based company provided guidance that came in well below estimates, projecting its '09 profit to fall to $2.50 per share, well below estimates of $4.22 per share. Caterpillar (NYSE:CAT) also announced plans to cut 20,000 jobs. Caterpillar (NYSE:CAT) wasn't the only company to announce job reductions as Sprint Nextel Corp (NYSE:S) and Home Depot (NYSE:HD) joined in the cost cutting efforts, slashing 8,000 and 7,000 positions, respectively. Home Depot (NYSE:HD) added that it plans to shutdown four dozen stores in an effort to cope with the lack of demand. Sprint Nextel (NYSE:S) said its job cuts may reduce annual costs by up to $1.2 billion. Unfortunately, General Motors (NYSE:GM) also announced layoffs of 2,000 workers at plans in Michigan and Ohio in addition to halting production at nine plants over the next six months. In economic news, the New-York based Conference Board reported its monthly reading on leading economic indicators for December had fallen 0.3%, in-line with economists' expectations. Another report on existing home sales was also released this morning showing a 6.5% rise to an annual rate of 4.74 million units. At the time of this report, the Dow Jones Industrial Average is up 86 points to 8,164, the S&P 500 is trading 12 points higher to 844 and the Nasdaq is trading 22 points higher to 1,500.

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