U.S. stocks rose on Wednesday on optimism the International Monetary Fund wants to raise more money to help combat Europe's debt crisis and after Goldman Sachs' earnings beat estimates.

The IMF is seeking to boost its war chest by $600 billion to help countries reeling from the crisis, but some nations insist Europe must first do more to support ailing members, sources said.

Meanwhile, Greece and its creditors resumed negotiations on terms of a planned debt swap, hoping to overcome an impasse in talks and stave off a painful default.

It's too early to get excited about Europe, but the IMF news is clearly a positive and a sign Europe is on its way to stabilizing, said Jerome Heppelmann, chief investment officer at Old Mutual Focused Fund in Berwyn, Pennsylvania.

Goldman Sachs Group Inc reported fourth-quarter earnings that topped analyst expectations, even though results fell from a year ago, and its chief financial officer said the company was increasing its target for cost savings.

Goldman climbed 6.4 percent to $103.93, helping to boost the financial sector after discouraging results from Citigroup Inc and JPMorgan Chase & Co this week.

The S&P financial index <.GSPF> was up 1.1 percent Wednesday and nearly 6 percent for the year.

The Dow Jones industrial average <.DJI> put on 68.23 points, or 0.55 percent, at 12,550.30. The Standard & Poor's 500 Index <.SPX> was up 9.29 points, or 0.72 percent, at 1,302.96. The Nasdaq Composite Index <.IXIC> jumped 28.47 points, or 1.04 percent, at 2,756.55.

The S&P 500 has risen 3.3 percent so far this year, helped by gains in financials. Investors have focused on improving U.S. economic data and a stabilization of the euro zone crisis.

The benchmark S&P 500 again bumped against the 1,300 level, a key resistance point that analysts said could trigger more selling if it is convincingly pierced.

Bank of New York Mellon Corp slid 4 percent to $20.44 after the world's No. 1 custody bank said fourth-quarter earnings fell.

Another big custody bank, State Street Corp slumped 6.5 percent to $39.98 after saying it accelerated an expense control program, a sign it still sees continued weakness in global capital markets.

Financial results will remain in focus, with reports from Bank of America Corp and Morgan Stanley this week.

Other big-cap names that should offer clues this week into the state of the economy include Microsoft Corp , Intel Corp and General Electric Co .

Amid a flurry of economic data, U.S. industrial output rose in December as manufacturing rebounded at its strongest pace in a year, while inflation pressures remained in check, with wholesale prices slipping last month.

Also, U.S. homebuilder sentiment unexpectedly jumped in January to its highest level in 4-1/2 years. The PHLX housing index <.HGX> climbed 2.6 percent.

Yahoo Inc was up 2.5 percent to $15.83 a day after co-founder Jerry Yang said he was severing all formal ties with the company he started in 1995. Shareholders had blasted Yang for impeding investment deals that could have transformed the Internet media group.

(Reporting By Ryan Vlastelica; editing by Jeffrey Benkoe)