US abortions fall 5 pct, biggest drop in a decade

NEW YORK (AP) — U.S. abortions fell 5 percent during the recession and its aftermath in the biggest one-year decrease in at least a decade, perhaps because women are more careful to use birth control when times are tough, researchers say.

The decline, detailed on Wednesday by the Centers for Disease Control and Prevention, came in 2009, the most recent year for which statistics are available. Both the number of abortions and the abortion rate dropped by the same percentage.

Some experts theorize that some women believed they couldn't afford to get pregnant.

"They stick to straight and narrow ... and they are more careful about birth control," said Elizabeth Ananat, a Duke University assistant professor of public policy and economics who has researched abortions.

While many states have aggressively restricted access to abortion, most of those laws were adopted in the past two years and are not believed to have played a role in the decline.

Abortions have been dropping slightly over much of the past decade. But before this latest report, they seemed to have pretty much leveled off.

Nearly all states report abortion numbers to the federal government, but it's voluntary. A few states — including California, which has the largest population and largest number of abortion providers — don't send in data. While experts estimate there are more than 1 million abortions nationwide each year, the CDC counted about 785,000 in 2009 because of incomplete reporting.

To come up with reliable year-to-year comparisons, the CDC used the numbers from 43 states and two cities — those that have been sending in data consistently for at least 10 years. The researchers found that abortions per 1,000 women of child-bearing age fell from about 16 in 2008 to roughly 15 in 2009. That translates to nearly 38,000 fewer abortions in one year.

Mississippi had the lowest abortion rate, at 4 per 1,000 women of child-bearing age. The state also had only a couple of abortion providers and has the nation's highest teen birth rate. New York, second to California in number of abortion providers, had the highest abortion rate, roughly eight times Mississippi's.

Nationally since 2000, the number of reported abortions has dropped overall by about 6 percent and the abortion rate has fallen 7 percent.

By all accounts, contraception is playing a role in lowering the numbers.

Some experts cite a government study released earlier this year suggesting that about 60 percent of teenage girls who have sex use the most effective kinds of contraception, including the pill and patch. That's up from the mid-1990s, when fewer than half were using the best kinds.

Experts also pointed to the growing use of IUDs, or intrauterine devices, T-shaped plastic sperm-killers that a doctor inserts into the uterus. A study released earlier this year by the Guttmacher Institute, a nonprofit organization that does research on reproductive health, showed that IUD use among sexually active women on birth control rose from less than 3 percent in 2002 to more than 8 percent in 2009.

IUDs essentially prevent "user error," said Rachel Jones, a Guttmacher researcher.

Ananat said another factor may be the growing use of the morning-after pill, a form of emergency contraception that has been increasingly easier to get. It came onto the market in 1999 and in 2006 was approved for non-prescription sale to women 18 and older. In 2009 that was lowered to 17.

Underlying all this may be the economy, which was in recession from December 2007 until June 2009. Even well afterward, polls showed most Americans remained worried about anemic hiring, a depressed housing market and other problems.

You might think a bad economy would lead to more abortions by women who are struggling. However, John Santelli, a Columbia University professor of population and family health, said: "The economy seems to be having a fundamental effect on pregnancies, not abortions."

More findings from the CDC:

— The majority of abortions are performed by the eighth week of pregnancy, when the fetus is about the size of a lima bean.

— White women had the lowest abortion rate, at about 8.5 per 1,000 women of child-bearing age; the rate for black women was about four times that. The rate for Hispanic women was about 19 per 1,000.

— About 85 percent of those who got abortions were unmarried.

— The CDC identified 12 abortion-related deaths in 2009.

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Wall Street rises after Gaza truce in thin holiday trade

NEW YORK (Reuters) - Stocks advanced on Wednesday after a ceasefire was declared to end the flare-up in violence between Israel and the Palestinians, though the lack of a deal to release aid to Greece kept a lid on gains.

Investors also remained anxious about the tax increases and spending cuts that are poised to come into effect in the new year - known as the "fiscal cliff" - though policymakers are not expected to get back to negotiations until after Thursday's Thanksgiving holiday.

Trading volume was light ahead of Thursday's market holiday. The stock market also will close early at 1 p.m. (1800 GMT) on Friday.

Greece's international lenders failed again to reach a deal to release emergency aid to the debt-saddled country. Lenders will try again next Monday, but Germany signaled that significant divisions remain.

A truce between Israel and Hamas gave stocks some support around midday after Egypt announced a ceasefire will come into effect later in the day.

Fears that the fiscal cliff discussions in Washington could be drawn out or yield no resolution have been at the forefront of investors' minds in recent weeks. Combined with concerns over the euro zone's continued debt problems, the worries had taken more than 5 percent off the S&P 500 since Election Day in early November.

Positive comments from U.S. politicians that they will work to find common ground have helped the S&P 500 recoup some of that loss in recent sessions.

"I think the focus is heavy on what are we doing about fiscal cliff," said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia.

"Are these guys talking? Are there going to be substantive decisions made?"

St Jude Medical shares tumbled 13.3 percent to $30.96 after an inspection report from health regulators raised new safety concerns about one of the company's leads that are used with implantable defibrillators, analysts said.

A small gain in International Business Machines helped the Dow outperform the other indexes. IBM was up 0.7 percent at $190.47.

The Dow Jones industrial average <.dji> added 49.35 points, or 0.39 percent, to 12,837.86. The Standard & Poor's 500 Index <.spx> edged up 2.62 points, or 0.19 percent, to 1,390.43. The Nasdaq Composite Index <.ixic> gained 8.28 points, or 0.28 percent, to 2,924.96.

Salesforce.com Inc jumped 7.6 percent to $157.03 after the business software provider beat Wall Street's expectations for the third quarter and maintained its outlook for the rest of the year.

But Deere & Co dragged on the S&P 500 after the world's largest farm equipment maker reported a weaker-than-expected quarterly profit. Its stock lost 4 percent to $82.52.

The market did not derive much direction from the day's economic data, with initial jobless claims falling last week, as expected.

Other data showed manufacturing picked up at its quickest pace in five months in November, while consumer sentiment improved only slightly.

The focus will likely turn to retailers on Friday as analysts try to assess how strong the holiday shopping season will be this year, Brunner said. Holiday shopping traditionally kicks off the day after Thanksgiving, known as Black Friday, as stores offer deals and discounts to lure consumers.

(Editing by Jan Paschal)

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Truce in Gaza Is Close, Egyptian Officials Say

JERUSALEM — Diplomatic efforts accelerated on Tuesday to end the deadly confrontation between Israel and Palestinian militants in Gaza, as the United States sent Secretary of State Hillary Rodham Clinton to the Middle East and Egypt’s president and his senior aides expressed confidence that a cease-fire was close.

The diplomatic moves to end the nearly week-old crisis came on a day of some of the most intense violence yet, in what appeared to be efforts by the antagonists to get their last attacks done before a cease-fire went into effect.

Israeli aerial forces assaulted several Gaza targets in multiple strikes, including a suspected rocket-launching site near Al Shifa hospital, which killed more than a dozen people, and Israeli naval vessels launched an intensive shelling aimed at the Gaza coastline. A delegation visiting from the Arab League canceled a news conference at the hospital because of the Israeli aerial assaults as wailing ambulances brought victims in, some of them decapitated.

Militants in Gaza fired a barrage of rockets into southern Israel, killing an Israeli soldier — the first military casualty on the Israeli side since the hostilities broke out last week. The Israel Defense Forces said the soldier, identified as Yosef Fartuk, 18, died from a rocket strike that hit an area near Gaza.

Other Palestinian rockets hit the southern Israeli cities of Beersheba and Ashdod, and longer-range rockets were fired at Tel Aviv and Jerusalem, but neither main city was struck and no casualties were reported. One Gaza rocket hit a building in the Israeli city of Rishon Lezion, just south of Tel Aviv, injuring one person and wrecking the top three floors.

Senior Egyptian officials in Cairo said Israel and Hamas, the militant Islamist group that governs Gaza, were “very close” to a cease-fire agreement that could be announced within hours. “We have not received final approval but I hope to receive it any moment,” said Essam el-Haddad, President Mohamed Morsi’s top foreign affairs adviser.

Foreign diplomats who were briefed on the outlines of a tentative agreement said it had been structured in stages — first, an announcement at approximately 10 p.m. local time (3 p.m. E.S.T.) of a cease-fire, followed by its implementation at midnight, for 48 hours. That would allow time for Mrs. Clinton to arrive, and to create a window for negotiators to agree on conditions for a longer-term cessation of hostilities.

Whether Hamas can enforce control over all of the militant Palestinian factions in Gaza to hold their fire during that period remained unclear.

The announcement of Mrs. Clinton’s active role in efforts to defuse the crisis added a strong new dimension to the multinational push to avert a new Middle East war. Israel has amassed thousands of soldiers on the border with Gaza and has threatened to invade the crowded Palestinian enclave for the second time in four years to stop the persistent rockets that have been lobbed at Israel.

Mrs. Clinton, who accompanied President Obama on his three-country Asia trip, left Cambodia on her own plane immediately for the Middle East. She was en route to Jerusalem to meet with Prime Minister Benjamin Netanyahu of Israel, then head to the West Bank to meet with Palestinian leaders and finally to Cairo to consult with Egyptian officials.

Mr. Obama made a number of late-night phone calls from his Asian tour to the Middle East on Monday night that contributed to his conclusion that he had to become more engaged and that Mrs. Clinton might be able to accomplish something.

With Ban Ki-moon, the United Nations secretary general, also in Israel on Tuesday, a senior official in Prime Minister Benjamin Netanyahu’s office said Israel had decided to give more time to diplomacy before starting a ground invasion into Gaza. But Israel has not withdrawn other options.

“I prefer a diplomatic solution,” Mr. Netanyahu said in a statement at the start of a meeting in Jerusalem with the German foreign minister, Guido Westerwelle. “I hope that we can get one, but if not, we have every right to defend ourselves with other means and we shall use them.

“As you know, we seek a diplomatic unwinding to this, through the discussions of cease-fire,” Mr. Netanyahu added. “But if the firing continues, we will have to take broader action and we won’t hesitate to do so.”

Intensifying the pressure on Hamas after a day of heavy rocket fire out of Gaza against southern Israel, the Israeli military said on Tuesday afternoon that it had distributed leaflets over Gaza instructing the Palestinian residents in several areas to evacuate their homes immediately, “for your safety,” and to move toward defined zones in central Gaza City. That seemed intended to signal that plans for a ground operation were imminent should the cease-fire talks fail. About three hours before Mr. Ban was scheduled to meet Mr. Netanyahu in Jerusalem, sirens sounded across the city in the early afternoon announcing an incoming rocket from Gaza. The military wing of Hamas said it had fired at the city. The rocket fell short, landing harmlessly in the West Bank just south of Jerusalem, and the military said it landed on open ground near a Palestinian village.

The rocket attack on the city, which is holy to Jews, Muslims and Christians, was the second in less than a week. On Friday, a rocket landed in a similar location, the police said.

Isabel Kershner reported from Jerusalem; Peter Baker from Phnom Penh, Cambodia; and Rick Gladstone from New York. Reporting was contributed by Jodi Rudoren from Gaza City, David D. Kirkpatrick from Cairo, Ethan Bronner from Jerusalem and David E. Sanger from Washington.

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Alicia Keys 'Definitely' Having 'At Least' One More Child

By Maggie Coughlan

11/20/2012 at 02:45 PM EST

Swizz Beatz, Alicia Keys and Egypt Daoud Dean

James Devaney/FilmMagic

When Alicia Keys gave birth to son Egypt two years ago everything changed.

"To have this type of love in my life at this time in my life, it means so much. Perspectives change, priorities change," she tells Lara Logan on CBS' Person to Person, airing Friday, Nov. 23 (10:00 p.m. ET).

But motherhood has been a welcomed change for Keys, 31, who tied the knot with rapper-producer Swizz Beatz, 34, in July 2010.

"I was such a different person seven years ago. Nothing would stop me from traipsing from here to London to L.A. back to London to L.A. in three days and not sleep. ... It was just that I thought that that was everything," she says. "But to have time to spend with my family and my son, it's like perspectives change a bit, it's like, 'Hold up! Let's not kill ourselves here.' "

Although balancing a family with her musical career has been an adjustment for the "Girl on Fire" singer, she excitedly speaks about the possibility of having more children.

When asked if she'd like to have "a lot more" children, Keys answered, "Definitely at least one more."

Watch more of the interview below:

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Wall Street falls as Bernanke's comments weigh

NEW YORK (Reuters) - Stocks slid as Federal Reserve Chairman Ben Bernanke's comments added to worries about the economic impact of the U.S. "fiscal cliff" and Hewlett-Packard's stock sank on news of an $8.8 billion accounting charge.

Bernanke, in comments before the Economic Club of New York, said the Fed does not have the tools to offset the damage that would result if politicians fail to strike a deal to prevent going off the fiscal cliff. If a solution isn't approved in time, then mandatory tax increases and spending cuts will go into effect early next year. Bernanke said he does not believe the possible benefits of cutting the interest it pays on bank reserves are sufficient to outweigh the risk of trouble in money markets.

"In the short run, we're hostage to the fiscal cliff. I think (Bernanke's) got to be really, really fearful that Washington doesn't get its act together and that creates stresses on the financial system," said Dan Veru, chief investment officer of Palisade Capital Management in Fort Lee, New Jersey.

Stocks rallied for the last two sessions on optimism that Washington politicians could agree on a deal to avoid the U.S. fiscal cliff. But the gains followed two weeks of sharp losses.

Hewlett-Packard Co shares sank 12 percent to a 10-year low at $11.70 as the computer and printer maker swung to a fourth-quarter loss. The company said it took an $8.8 billion charge related to its acquisition of software firm Autonomy, citing "serious accounting improprieties.

The Dow Jones industrial average <.dji> was down 63.43 points, or 0.50 percent, at 12,732.53. The Standard & Poor's 500 Index <.spx> was down 5.78 points, or 0.42 percent, at 1,381.11. The Nasdaq Composite Index <.ixic> was down 15.01 points, or 0.51 percent, at 2,901.06.

Another factor weighing on stocks was Moody's Investors Service's reduction of France's sovereign rating by one notch to Aa1 after the market's close on Monday. Moody's cited an uncertain fiscal outlook as a result of the weakening economy.

(Additional reporting by Chuck Mikolajczak Editing by Jan Paschal)

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New push for most in US to get at least 1 HIV test

WASHINGTON (AP) — There's a new push to make testing for the AIDS virus as common as cholesterol checks.

Americans ages 15 to 64 should get an HIV test at least once — not just people considered at high risk for the virus, an independent panel that sets screening guidelines proposed Monday.

The draft guidelines from the U.S. Preventive Services Task Force are the latest recommendations that aim to make HIV screening simply a routine part of a check-up, something a doctor can order with as little fuss as a cholesterol test or a mammogram. Since 2006, the Centers for Disease Control and Prevention also has pushed for widespread, routine HIV screening.

Yet not nearly enough people have heeded that call: Of the more than 1.1 million Americans living with HIV, nearly 1 in 5 — almost 240,000 people — don't know it. Not only is their own health at risk without treatment, they could unwittingly be spreading the virus to others.

The updated guidelines will bring this long-simmering issue before doctors and their patients again — emphasizing that public health experts agree on how important it is to test even people who don't think they're at risk, because they could be.

"It allows you to say, 'This is a recommended test that we believe everybody should have. We're not singling you out in any way,'" said task force member Dr. Douglas Owens of Stanford University and the Veterans Affairs Palo Alto Health Care System.

And if finalized, the task force guidelines could extend the number of people eligible for an HIV screening without a copay in their doctor's office, as part of free preventive care under the Obama administration's health care law. Under the task force's previous guidelines, only people at increased risk for HIV — which includes gay and bisexual men and injecting drug users — were eligible for that no-copay screening.

There are a number of ways to get tested. If you're having blood drawn for other exams, the doctor can merely add HIV to the list, no extra pokes or swabs needed. Today's rapid tests can cost less than $20 and require just rubbing a swab over the gums, with results ready in as little as 20 minutes. Last summer, the government approved a do-it-yourself at-home version that's selling for about $40.

Free testing is available through various community programs around the country, including a CDC pilot program in drugstores in 24 cities and rural sites.

Monday's proposal also recommends:

—Testing people older and younger than 15-64 if they are at increased risk of HIV infection,

—People at very high risk for HIV infection should be tested at least annually.

—It's not clear how often to retest people at somewhat increased risk, but perhaps every three to five years.

—Women should be tested during each pregnancy, something the task force has long recommended.

The draft guidelines are open for public comment through Dec. 17.

Most of the 50,000 new HIV infections in the U.S. every year are among gay and bisexual men, followed by heterosexual black women.

"We are not doing as well in America with HIV testing as we would like," Dr. Jonathan Mermin, CDC's HIV prevention chief, said Monday.

The CDC recommends at least one routine test for everyone ages 13 to 64, starting two years younger than the task force recommended. That small difference aside, CDC data suggests fewer than half of adults under 65 have been tested.

"It can sometimes be awkward to ask your doctor for an HIV test," Mermin said — the reason that making it routine during any health care encounter could help.

But even though nearly three-fourths of gay and bisexual men with undiagnosed HIV had visited some sort of health provider in the previous year, 48 percent weren't tested for HIV, a recent CDC survey found. Emergency rooms are considered a good spot to catch the undiagnosed, after their illnesses and injuries have been treated, but Mermin said only about 2 percent of ER patients known to be at increased risk were tested while there.

Mermin calls that "a tragedy. It's a missed opportunity."

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Hamas Leader Dares Israel to Invade Amid Gaza Airstrikes

GAZA CITY — The top leader of Hamas dared Israel on Monday to launch a ground invasion of Gaza and dismissed diplomatic efforts to broker a cease-fire in the six-day-old conflict, as the Israeli military conducted a new wave of deadly airstrikes on the besieged Palestinian enclave, including a second hit on a 15-story building that houses media outlets. A volley of rockets fired from Gaza into southern Israel included one that hit a vacant school.

Speaking at a news conference in Cairo, where the diplomatic efforts were under way, the Hamas leader, Khaled Meshal, suggested that the Israeli infantry mobilization on the border with Gaza was a bluff on the part of Prime Minister Benjamin Netanyahu of Israel.

“If you wanted to launch it, you would have done it,” Mr. Meshal told reporters. He accused Israel of using the invasion threat as an attempt to “dictate its own terms and force us into silence.”

Rejecting Israel’s contention that Hamas had precipitated the conflict, Mr. Meshal said the burden was on the Israelis. “The demand of the people of Gaza is meeting their legimitate demands — for Israel to be restrained from its aggression, assassinations and invasions, and for the siege over Gaza to be ended,” he said.

The Hamas Health Ministry said Monday evening that a total of 102 people had been killed since Wednesday morning, when Israeli airstrikes began, following months of Palestinian rocket fire into Israel. A spokeswoman for the Israeli military said she believed that a majority of these were militants, though it is difficult to know because Hamas’s own fighting brigade and the other factional groups are secretive.

The Hamas ministry said that the dead included 24 children, 10 women and 12 men over 50, who were presumably not involved in combat. Of the remaining 56, at least 36 are known militants. Hamas officials said 850 have been wounded, 260 of them children, 140 of them women and 55 men over 50.

Three people have been killed so far in Israel, all civilians, in a rocket strike that hit an apartment house in the southern Israeli town of Kiryat Malachi on Thursday morning. The Israelis have said that at least 79 Israelis have been wounded and that Gaza rockets have reached as far north as Tel Aviv.

The latest Gaza casualties — 19 people reported killed since midnight local time — included Palestinians killed in strikes by warplanes and a drone attack on two men on a motorcycle, the Health Ministry said. Another Israeli drone attack killed the driver of a taxi hired by journalists and displaying “Press” signs, although it was not clear which journalists hired it, Palestinian officials said.

On Sunday, Israeli forces attacked two buildings housing local broadcasters and production companies used by foreign outlets. Israeli officials denied targeting journalists, but on Monday Israeli forces again blasted the Al Sharouk block, a multiuse building where many local broadcasters, as well as Sky News of Britain and the channel Al Arabiya, had offices.

That attack, which struck a computer shop on the third floor, sparked a blaze that sent plumes of dark smoke creeping up the sides of the building. Video footage showed clouds of smoke billowing.

An Israeli bomb pummeled a home deep into the ground here on Sunday, killing 11 people, including nine in three generations of a single family, in the deadliest single strike since the latest conflict began. Members of the family were buried Monday in a rite that turned into a gesture of defiance and became a rally supporting Gaza’s militant Hamas rulers.

A militant leader said Tel Aviv, in the Israeli heartland, would be hit “over and over” and warned Israelis that their leaders were misleading them and would “take them to hell.”

Israel says its onslaught is designed to stop Hamas from launching the rockets, but, after an apparent lull overnight, more missiles hurtled toward targets in Israel, some of them intercepted by Israel’s Iron Dome defense system. Of five rockets fired on Monday at the southern Israeli city of Ashkelon, four were intercepted but one smashed through the concrete roof at the entrance to an empty school. There were no reports of casualties. Other rockets rained on areas along the border with Gaza.

Later a second salvo struck Ashkelon. Several rockets were intercepted, but one crashed down onto a house, causing damage but no casualties. News reports said 75 rockets had been fired by midafternoon.

On Sunday, a new volley of Palestinian rockets totaled nearly 100 by nightfall, including two that soared toward Tel Aviv but were knocked out of the sky by Israeli defenses.

Fares Akram and Jodi Rudoren reported from Gaza City, and Alan Cowell from London. Reporting was contributed by Isabel Kershner from Ashkelon, Israel; Ethan Bronner, Myra Noveck and Irit Pazner Garshowitz from Jerusalem; Rina Castelnuovo from Ashdod, Israel; Peter Baker from Bangkok; and David D. Kirkpatrick from Cairo.

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Epic Fashion Faceoff: Nicki Minaj vs. Julie Bowen vs. Paula Patton

Stylewatch
Style News Now

11/19/2012 at 01:00 PM ET

BroadImage; Getty; WireImage

What do Nicki Minaj, Julie Bowen and Paula Patton have in common? Before Sunday night, it probably wasn’t much. But now all three are bound by one very chic name: Monique Lhuillier.

Minaj wore Lhuillier’s silk faille strapless trumpet gown to the American Music Awards on Sunday, opting for the lime-green hue. We were actually surprised to see the star wearing something so … conventional, but she kept her styling expectedly over-the-top, adding a candy-pink lip, unruly platinum blonde waves and a multicolored statement necklace.

Conversely, Bowen stepped out of her comfort zone when she wore the gown to the 2012 Emmy Awards, telling PEOPLE, “I go very dark in colors, olive green being my most exciting shade. So I wanted color. And I think I delivered.” She accessorized the strapless creation with a metallic clutch, sparkly danglers and a half-up, half-down ‘do.

But the first star to get her hands on the dress — in lemon yellow — was Patton, for the 2012 Golden Globes. The star paired the frock with an understated hairstyle, along with a nude lip and starburst studs. Three very different women, one very classic gown. Tell us: Who do you think wore their Monique Lhuillier dress best? Minaj, Bowen or Patton? Vote below!

–Jennifer Cress

PHOTOS: VOTE ON MORE FASHION FACEOFFS!

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Wall Street bounces on hopes for budget talk success

NEW YORK (Reuters) - Wall Street climbed on Monday, putting the S&P 500 on track for its second straight advance as investors were encouraged by the early tone in talks to tackle the fiscal crunch and data that showed continued improvement in the housing recovery.

The S&P 500 is up more than 2 percent over the past two sessions as rhetoric from legislators has provided investors with some hope a deal could be reached to stave off the looming "fiscal cliff," a series of tax and spending changes that will start to come into effect in the new year.

Before the recent gains, the benchmark S&P index had fallen 5.3 percent since Election Day, as concerns about Washington's ability to reach an agreement became the top focus for investors.

Over the weekend, leading Democratic and Republican lawmakers expressed confidence that they could reach a deal to avert the "fiscal cliff", even as they laid down markers on raising taxes and spending cuts that may make any agreement more difficult.

But the recent climb could prove to simply be a bounce from the sharp declines, with market volatility expected to be heightened by the perception of negotiation progress.

"There has been a pretty steady downward move for a while so you are going to have days like this, especially when the news is good," said Uri Landesman, president at Platinum Partners in New York.

"In general, what you are going to watch is if there is no deal, you are going to see the market trade down during the week."

Stronger-than-expected earnings from Lowe's and Tyson Foods, as well as encouraging housing data, also contributed to the market's advance. Tyson and Lowe's were the top two percentage gainers on the S&P 500.

U.S. home resales unexpectedly increased in October, while separate data showed homebuilder sentiment rose to its highest level in over six years in November.

The PHLX Housing Index <.hgx> rose 1.7 percent.

The Dow Jones industrial average <.dji> gained 173.72 points, or 1.38 percent, to 12,762.03. The Standard & Poor's 500 Index <.spx> rose 22.52 points, or 1.66 percent, to 1,382.40. The Nasdaq Composite Index <.ixic> climbed 51.59 points, or 1.81 percent, to 2,904.72.

The S&P was holding near its 200-day moving average at around 1,382, which has acted as a resistance level since a drop below the technically significant mark on November 8.

Shares of Lowe's Cos Inc , the world's No. 2 home improvement chain, jumped 6.1 percent to $33.94 after the company reported higher-than-expected quarterly profit and raised its full-year sales forecast.

Tyson Foods Inc likewise beat expectations and gave an upbeat forecast, sending its stock up 7.8 percent at $18.20.

Intel shares edged lower, down 0.2 percent to $20.15 after the company said its chief executive will retire in May.

Commodities prices surged, boosting shares of resource companies. Freeport-McMoRan rose 3.8 percent to $38.18, while U.S. Steel rose 4.3 percent to $20.94. The S&P materials sector <.gspm> advanced 2.4 percent.

(Reporting by Chuck Mikolajczak)

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