NEW YORK (November 28, 2012)--Stocks closed higher Wednesday on signs that lawmakers are edging toward a deal that would help the U.S. avoid a fiscal crisis at the end of the year.

The Dow Jones industrial average gained 107 points to end the day at 12,985 Wednesday.

Earlier the Dow was down as much as 112 points.

The Standard and Poor's 500 rose 11 points to close at 1,410.

The Nasdaq composite rose 24 points to end the day at 2,992.

Huge tax increases and spending cuts will go into effect Jan. 1 if no deal on the U.S. budget is reached.

President Barack Obama said he believed that both parties could reach a framework on a deal before Christmas.

Rising stocks outnumbered falling ones two-to-one on the New York Stock Exchange where volume was lighter than average at 3.3 billion shares.