U.S. stocks are surging today in mid-afternoon trading, as the Dow Jones Industrial Average has broken 12,000 points and the S&P 500 exceeded the 1,300 point barrier.

The Dow is up 1.94 percent, while the S&P 500 is up 1.2 percent to 1,302 points on strong earnings reports and on news that the Supply Management’s manufacturing index rose to 60.8 points from 58.5 in December.

The Nasdaq is up 2.05 percent, while oil is edging down by 0.23 percent. Gold is up slightly by 0.49 percent.

Pfizer (NYSE: PFE) is up 5.71 percent as the company reported that its net income rose to $2.9 billion in the fourth quarter, more than triple of what it was in the fourth quarter of 2009.

Bank of America (NYSE: BAC) is up 4.24 percent in the wake of news that it, along with Morgan Stanley, will market $1.55 billion worth of commercial mortgage-backed loans.

Exxon Mobil (NYSE: XOM) is up 3.38 percent as it released a positive report on global demand for oil between now and 2030. Its European rival, Royal Dutch Shell (NYSE: RDS) is up 2.32 percent.

British Petroleum (NYSE: BP) is up 1.05 percent on strong earnings reports this morning.