The Dow has been up for four straight days, apparently responding to action taken by the Barack Obama transition team as it names its cabinet and bevy of advisors, along with hints that a solution for ailing automakers may be in the works.

Stocks tumbled in the morning on weak economic reports, but staged a comeback in the afternoon. The latest edition to President-elect Obama's economic team, a rally for the automakers and seasonal factors all contributed to the advance.

This week, Obama has concentrated on his financial team and appears to be getting high marks from critics.

The announcements from Obama throughout the week have been another step in the right direction, Merrill said. "Even detractors are impressed with the quality of the team and the way it's been unfolded." Saying, "help is on the way," the president-elect announced Wednesday the creation of a special economic advisory board to be headed by former Federal Reserve Chairman Paul Volcker. Volcker is the latest addition to the economic team Obama announced this week.