Sharp gains in shares of biotechnology heavyweights mitigated the wider sector's decline in 2008. Biotech stocks proved to be one of the safest investments this year, as strong drug sales and the potential for large buyout deals defended the sector from broader market collapse.

Stocks closed higher as a rebound in oil prices boosted energy shares and offset worries about the fate of the auto industry bailout.

Stocks rode the enthusiasm over an auto makers bailout and a swift round of profit-taking to stage a rally Wednesday that offset some of the previous day's losses.

Stocks finished higher in feather-light trading Wednesday, boosted by a rise in financials and energy stocks, as well as a better-than-expected durable-goods report.

U.S. health regulators are seeking stronger warnings about the risk of pancreatitis after the deaths of two patients taking Amylin Pharmaceuticals' injectable diabetes drug Byetta, sending the company's shares down as much 16 percent.

Billionaire investor Carl Icahn reported that he had increased his stake in Motorola to 144.1 million shares from 115.6 million shares the prior quarter. Meanwhile, George Soros raised his stake in Wall Street firm Lehman Brothers to 9.5 million shares.