Markets Pare Earlier Gains But Close Higher

The markets pared earlier gains but closed higher with the Dow climbing 90 points to 7750 over better than expected new home sales and durable goods orders.  Nasdaq gained 12 points to 1529.

On the upside

Hearst Corp. offered approximately $375 million to take Hearst Television (NYSE: HTV) private.

Clear Channel Outdoor (NYSE: CCO) will extend its partnership with the Federal Bureau of Investigation by one year to use its digital billboards to capture fugitives.

Staples (Nasdaq: SPLS) will raise $500 million through the sale of senior notes in order to pay down debt.

Moody's Investors Service downgraded the credit rating of Wells Fargo (NYSE: WFC) but the stock price rose.

On the downside

International Paper's (NYSE: IP) chief executive John V. Faraci received a compensation package valued at $10.3 million in 2008.

Although durable goods orders rose, orders for new cars slipped by 0.6% to weigh down shares of Ford (NYSE: F).

In the broad market, advancing issues outpaced decliners by a margin of nearly 2 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq.  The Russell 2000 which tracks small cap stocks soared 10 points to 427.