J.C. Penney Company, Inc. (NYSE: JCP) shares edged down 0.57 percent to $6.97 in after-hours trading on Wednesday following the retailer announced it plans to cut 2,000 jobs and close 33 stores.

“These actions are expected to result in an annual cost savings of approximately $65 million, beginning in 2014,” the retailer said it a statement on Wednesday. “In connection with this initiative, the Company expects to incur estimated pre-tax charges of approximately $26 million in the fourth quarter of fiscal 2013 and approximately $17 million in future periods.”

U.S. stocks rallied early in the session after investors weighed strong earnings from Bank of America Corp. (NYSE: BAC).

Bank of America Corp. (NYSE: BAC) reported earnings of $3.44 billion, or 29 cents per share, for the fourth quarter, compared with a profit of $732 million, or 3 cents a share, a year earlier. Meanwhile, revenue for the bank soared 15 percent to $21.7 billion.

After the bell, CSX Corp. (NYSE:CSX)shares fell 3.01 percent to $28.35 in extended-hours trading after the company issued EPS of 42 cents on $3 billion in earnings during the fourth-quarter, compared with Wall Street expectations for earnings of 43 cents per share on revenue of $3.01 billion.

The Dow Jones industrial average rose 108.08 points, or 0.66 percent, to end at 16,481.94. The S&P 500 Index was up 9.50 points, or 0.52 percent, to close at 1,848.38. The Nasdaq Composite rose 31.87 points, or 0.76 percent, to finish at 4,214.88.