Service Sector Index Rises To Lift Markets Higher

Despite a larger than expected drop in factory orders and home sales, the markets closed higher with the Dow gaining 62 points to 9015 as the Institute for Supply Management's service sector activity index unexpectedly rose. Nasdaq surged 24 points to 1652.

On the upside

Talbots (NYSE: TLB) entered agreements with Mizuho Corporate Bank, Sumitomo Mitsui Banking Corp. and the Norinchukin Bank to secure $150 million in committed lines of credit.

AerCap Holdings (NYSE: AER) secured agreements from a syndicate of banks to guarantee financing of up to $1.4 billion for the Airbus A330 aircraft.

Developers Diversified Realty (NYSE: DDR) announced the promotion of Paul W. Freddo to the position of senior executive vice president of leasing and development and David J. Oakes to senior executive vice president of finance and chief investment officer.

On the downside

Vasco Data Security (Nasdaq: VDSI) blamed order delays for cutting its 2008 revenue guidance.

Shares of Finish Line (Nasdaq: FINL) tumbled ahead of its earnings release after market close.

United Community Banks (Nasdaq: UCBI) increased its fourth quarter loan loss provision to $85 million as the economy continues to sour.

In the broad market, advancing issues outpaced decliners by a margin of nearly 7 to 2 on the NYSE and by 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks advanced 10 points to 515.