Stocks Rise as Trade Deficit Falls

The U.S. trade deficit fell in November to its lowest since 2003 as investors turned their attention to the incoming Obama administration and a likely stimulus package to boost the economy. The Dow rose 46 points to 8520 while Nasdaq surged 18 points to 1557.

On the upside

Varian Medical Systems (NYSE: VAR) announced 1st quarter growth forecasts citing new orders for its x-rady and security inspection products.

An analyst upgraded Las Vegas Sands (NYSE: LVS) citing the casino operator's recent cash infusion.

The Medicines Company offered $42 million or $2 a share to buy Targanta Therapeutics (Nasdaq: TARG) to boost its infection treatment program.

On the downside

Aluminum giant Alcoa (NYSE: AA) posted a $1.19 billion loss in the 4th quarter due to falling aluminum prices.

Shares of Citigroup (NYSE: C) continued to erode due to expectations of 4th quarter losses that may top $10 billion.

American depository receipts of Sony (NYSE: SNE) edged lower as analysts warned that the consumer electronics and media giant may post its first loss in more than a decade.

In the broad market, advancing issues outpaced decliners by a margin of 5 to 4 on the NYSE and by nearly 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks added 4 points to 473.