U.S. stocks ended higher Wednesday, with gains tied largely to a tentative deal ending a two-day United Auto Workers strike against General Motors Corp. that could set the stage for other automakers to cut health-care costs.

Stocks, which traded higher for most of the day, got an additional boost about 90 minutes before the close after the New York Times reported that billionaire investor Warren Buffett was considering buying a large stake in Wall Street firm Bear Stearns (NYSE:BSC) (BSC) . Bear Stearns (NYSE:BSC) shot up as much as 11% on the report and closed at $123 a share, a gain of $8.76 or 7.7%.

"It's a Detroit market at least in the beginning, with renewed enthusiasm based on the news out of Detroit," said Peter Cardillo, chief market economist at Avalon Partners.

The Dow Jones Industrial Average (DJI) rose 99.5 points to close at 13,878.2, with 25 of its 30 components ahead. GM's shares set the pace, up 9.4%, followed by Alcoa Inc. (NYSE:AA) (AA) , up nearly 4%.

Boeing Co. (NYSE:BA) (BA) , the world's largest aerospace company, fronted the Dow's declines, its stock off 0.5%.

Technology bellwether Hewlett-Packard Co. (NYSE:HPQ) (HPQ) joined the Dow's declining components, its stock off 0.7%.

The S&P 500 (SPX) added 8.21 points to 1,525.42 and the Nasdaq Composite ( RIXF) climbed 15.58 points to 2,699.03.

Trading volume came to nearly 1.3 billion on the New York Stock Exchange, with advancing stocks topping decliners roughly 2 to 1.

On the Nasdaq, volume topped 2 billion shares, and advancing stocks outran decliners by more than 4 to 3.

Chevron buyback

Oil and gas shares were mixed after gaining earlier on in taking their cue from oil giant Chevron Corp.'s (NYSE:CVX) plans for a $15 billion stock buyback.

The Amex Oil Index (XOI) moved 0.5% lower and the Amex Natural Gas Index (XNG) fell 0.3%. Shares of Chevron (CVX) gained 1%.

Crude-oil futures climbed $1.23, or 1.5%, at $80.72 a barrel, after slumping earlier on after the Energy Department reported the first rise in U.S. crude supplies in five weeks..

Soft reading on capital spending

Ahead of the opening bell, futures for the major stock indexes briefly trimmed early gains after the Commerce Department reported the largest monthly decline in durable-goods orders since January: a 4.9% drop in August after a 6.1% gain in July..

"Durable goods were a little less than expected, and point to moderate growth ahead," said Cardillo.

While the retreat proved larger than the anticipated 4.5% fall, the "very elevated levels the month prior" make it difficult to "extrapolate much from the data," said analysts at Action Economics.

"Perversely, the weak durables report is also seen as supportive of another Fed rate cut, despite hawkish noises from [Philadelphia Fed president Charles] Plosser overnight," said Action Economics..

In play

Among the most active, GM shares gain in light of the Detroit-based auto maker's pact with the UAW, which includes plans for an independent retiree health-care trust..

The tentative pact between GM and the UAW is "important news" for GM, but investors remain a bit cautious otherwise, looking ahead to third-quarter earnings the impact of the housing crisis on consumer spending, said Art Hogan, chief market strategist at Jefferies & Co.Listen to Hogan.

Merrill Lynch Co. Inc. (NYSE:MER) (MER) shares fell 0.5% after Goldman Sachs analysts lowered their earnings forecast for the brokerage, citing "an extremely challenging operating environment" in the third quarter.

Shares of Newmont Mining Corp. (NYSE:NEM) (NEM) slid 5.9% after the Denver, Colo.-based gold producer warned of higher costs and swindling reserves from its older, more tapped-out mines..

Red Hat Inc. (NYSE:RHT) (RHT) reported a 59% increase in second-quarter profits, with sales of $127.3 million exceeding Wall Street forecasts of $125 million. Its shares climbed 5.3%.

Office Depot Inc. (NYSE:ODP) (ODP) shares climbed 5.4% after J.P. Morgan upgraded the stock to overweight from neutral, and downgraded Staples Inc. (NASDAQ-NMS:SPLS) (SPLS) to underweight from neutral.

The broker also upgraded CVS Caremark Corp. (NYSE:CVS) (CVS) to overweight from neutral and trimmed Walgreen Co. (NYSE:WAG) (WAG) to neutral from overweight. CVS stock gained 0.8% , while Walgreen's (NYSE:WAG) gained 1.8%

Sprint Nextel Corp. (NYSE:S) (US-S) edged up 1.5%. Goldman Sachs downgraded the telecommunications operator to neutral from buy.

Monsanto Co. (NYSE:MON) (MON) shares hit an all-time high after a top executive predicted the biotechnology giant would triple its international acreage planted with genetically engineered seeds. Its shares were recently 3.6% ahead..

Shares of CMGI Inc. (NASDAQ-NMS:CMGI) ( CMGI (NASDAQ-NMS:CMGI) ) fell 13.8% after the technology and venture capital firm reported a fourth-quarter loss of $6.2 million.

Among companies due to report Wednesday, Bed Bath & Beyond Inc. (BBBY) is expected to post earnings of 52 cents a share for the second quarter. Its stock climbed 1.1%.

Wednesday roundup

In trading on the New York Mercantile Exchange, gold futures for December delivery fell $3.30 to close at $735.50 an ounce..

The dollar took a breather from its recent drop, shrugging off weak durable goods data and gaining on its major counterparts..

Treasurys fell, sending yields higher, with the benchmark 10-year note up 3/32 at 101 1/32, yielding (TNX) 4.621%..

Overseas, European markets advanced, bolstered by strength in the financial- services sector..

In Asia, stocks were mixed, with Japan's Nikkei 225 benchmark closing marginally higher on gains by exporters.

    (END) Dow Jones Newswires   09-26-07 1754   Copyright (c) 2007 Dow Jones & Company, Inc.