US mkts closed higher amid volatility

Stocks closed higher after another day of volatility day of trading, the Dow gaining 46 points, the S&P 500 up 10 points, and the NASDAQ picking up 14 points.  

Senate Republicans and Democrats have agreed to add rebates for 20 million seniors and 2,50,000 disabled veterans the economic stimulus plan. The bill could go to the house for a final vote tonight. Tough news out of GSK today, the company is seeing 4^th quarter profits falling 10% on plummeting sales of its most profitable product, that’s diabetes drug, Avandia. You may recall a controversial study that may show that the drug may increase heart-attack risks. GSK shares heading a 3 year low on that news.  

Shopping slowdown continued in January sparking more talks about recession. Major chains including Wal-Mart reporting disappointing sales results, the Nation’s top retailer says, same store sales rose just 0.5% last month, short of expectations. Pending home sales fell 1.5% in December and that’s the second lowest reading on record. Few newly unemployed workers sought first time jobless claims last week but there were more lay offs, than analysts had predicted. 

Merger news gave airline stocks a boost today, the Wall-Street Journal reporting Delta Airlines and Northwest could announce a deal within the next two weeks, while preliminary talks between Continental and United appear to be getting more serious.