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NEW YORK (AP) - Stocks are closing higher on Wall Street, erasing an early loss, after Congressional leaders reported progress in talks with President Barack Obama about cutting the U.S. government's budget deficit.

The Dow Jones industrial average finished up 46 points at 12,588 Friday. The Standard & Poor's 500 index rose seven to end at 1,360 and the Nasdaq composite rose 16 to 2,853.

The market started lower Friday but spiked higher shortly before midday as the top members of the House and Senate spoke at the White House following a closed-door session with Obama.

The Dow is still down for the week, its fourth straight weekly loss.

Three stocks rose for every one that fell on the New York Stock Exchange. Volume was slightly heavier than usual at 4 billion shares.