US stock indexes notched up big gains last night, as a number of high-profile companies announced stock splits, dividend increases and earnings that met or exceeded analysts' expectations.

The rally was confined to large companies with high-profile names. Declining issues ran neck and neck with advancers all day on the New York Stock Exchange. Volume was moderate and unimpressive, although up from Monday's pace.

But some index components shone. The Dow was led higher by IBM, whose shares were up three points after the company confirmed Monday's rumours that it would exchange two shares for every one held by investors.

IBM was joined by Dow component McDonald's, which also announced a two-for-one split and raised its dividend.