Stocks Gain on GM/UAW Pact

The most significant event in terms of stocks came in the form of a labor/management agreement between General Motors and the United Auto Workers (UAW), ending a one-day-old strike of 73,000 union members. Nobody - not the company, the union, the government or the financial community - was in the mood for a protracted job action, and concessions from both sides lifted investor spirits.

Dow 13,878.15 +99.50; NASDAQ 2,699.03 +15.58; S&P 500 1,525.42 +8.21; NYSE Composite 9,980.12 +46.30

Advancing issues outpaced decliners by an 8-5 margin and new highs retook the lead over new lows, 304-187. The see-saw battle continues as the market seeks direction.

Oil gained 77 cents to close above the $80 mark again, at $80.30. Gold and silver took a brief respite from their recent heady advances.

While the housing and debt markets are still in a shambles, Tuesday was a day of gains built largely on the backs of labor and management negotiators. Tomorrow, reality may set in once again.