US stocks advanced in early trade on Wednesday, with S&P 500 Index gaining 1.14 points, or 0.10 percent, to trade at 1,224.96 at 10:15 a.m. EST. The Dow Jones Industrial Average is up 5.15 points, or 0.05 percent, to trade at 11,364.31. The Nasdaq Composite Index advanced 0.12 percent.

The dollar strengthened against most of its counterparts for the second day as extension of tax cuts brightened the outlook for U.S. growth. The euro declined 0.13 percent to 1.3244 against the dollar and the yen declined 0.74 percent against the greenback.

President Barack Obama defended his compromise with Republicans on extending tax cuts for wealthier Americans, saying it was urgent to keep millions of Americans from losing unemployment insurance payments.

Yields rose along with the greenback after Tuesday’s deal as the compromise on taxes is also heightened concerns about inflation and the government's debt burden.

On the corporate front, Texas Instruments declined 0.15 percent after the company narrowed its earnings and revenue forecasts for the fourth quarter on late Tuesday.

U.S. retailer Costco Wholesale Corp declined 0.65 percent. The company's first quarter profit was $312 million or 71 cents a share, up from $266 million or 60 cents a share last year.

Orexigen Therapeutics, Incsurged 114.97 percent after the company and Takeda Pharmaceutical Co. said FDA advisory committee backed Orexigen's new diet pill Contrave or naltrexone sustained release-SR/bupropion SR for the treatment of obesity despite heart risk concerns.

Netflix, Inc. plummeted 2.55 percent after the company said its chief financial officer Barry McCarthy is resigning to pursue broader executive opportunities outside company.

Crude oil futures declined 0.02 percent to $88.67/barrel and gold futures declined 1.26 percent.

European stock markets are currently trading mixed with FTSE 100 up by 6.36 points, DAX30 down by 7.57 points and CAC 40 up by 34.81 points.