Closing Bell: Airlines Rally on Deutsche Bulls; U.S. Stocks at Records

An earlier rally lasted through the afternoon, pushing the S&P 500 and Dow Jones Industrial Average to close at fresh records. Oil also rallied, boosted by an OPEC report that forecast an increase in demand and decline in production next year. U.S. airlines enjoyed their best gains in around two years after Deutsche Bank analysts grew bullish on the industry. The firm upped its rating to BUY on American Airlines (AAL) - Get Report , Delta  (DAL) - Get Report and United  (UAL) - Get Report . Credit Suisse reiterated its faith in Gilead Sciences (GILD) - Get Report . The firm expects robust full-year sales on the strength in its hepatitis-C business. Finally, Merck (MRK) - Get Report was slightly higher after announcing plans to lay off employees at three of its East Coast sites. The drugmaker expects to cut around 10 percent of the research and development staff at two sites in New Jersey and one in Pennsylvania. TheStreet's Keris Lahiff has details from Wall Street.