Warming news of upbeat home sales figures as well as big earnings reports were able to lift the market from its three day major downturn.  The Dow Jones Industrial Average jumped 1.78% to a close of 8,078.36 just as the Nasdaq and S&P 500 rose 1.46% and 1.58% respectively to levels of 1,516.30 and 838.51.  With all the good news on the street crude oil responded with a boost of $0.17 to a close of $40.95. Gold also jumped $8.50 to $901.  The National Association of Realtors released surprising news that the seasonally adjusted index of pending sales for pre-owned homes rose 6.3% percent in the month of December.

Merck Co. Inc. (MRK: 30.24, +1.81 (+6.37%)) reported diluted earnings per share of $0.78, beating analysts estimates of $0.74 earnings per share.  This was compared to $0.75 earnings per share a year ago due to a $4.85 billion charge for a settlement.  Merck noted lower fourth quarter costs for general materials and production as well as citing the fact that restructuring was down over $50 million from 2007.  The company said it took a $62 million charge in the fourth quarter for future legal defense costs related to Vioxx, which Merck pulled from the market in September 2004 because the then-blockbuster arthritis pill doubled risk of heart attacks and strokes.  Merck expects to lay off about 5,300 more workers under a new restructuring plan announced in October.

Homebuilder D.R.