Stocks took a rebound after comments about a potential compromise to avoid the "fiscal cliff." (Creative Commons)

The Dow Jones industrial average rose almost 107 points, or .83 percent, to nearly 13,000 at the close. The S&P 500 gained almost 11 points, or .79 percent, to 1,409.93. The Nasdaq Composite added nearly 24 points, or 81 percent, to close at 2,991.78.

Boehner, an Ohio Republican, said he was optimistic that “a budget deal to avoid big spending cuts and tax hikes can be worked out.” President Barack Obama also said he hoped to finalize a deal in the next four weeks.

Despite such positive thinking, the reality of how much progress is able to happen in a month’s time may come up short of expectations.

“The fiscal cliff is dominating the discussion, and short term, we’re a little bit too optimistic on it being fixed right away,” said John Manley, chief equity strategist for Wells Fargo Advantage Funds in New York.

In light of higher expected tax rates next year, companies are already shifting dividends and announcing payouts to shareholders. The market has been swinging for weeks now, influenced by Washington headlines stressing the importance of finding a solution to tax increases and spending cuts that may push the country into recession.

Read the full story here.

Reach Executive Producer Sophie here.