U.S. stocks closed higher Tuesday, as a $66 billion deal by Actavis for Allergan helped drive gains in the healthcare sector and a gauge of sentiment among American home builders increased more than expected. In U.S. economic news, the National Association of Homebuilders said that its builder-sentiment index rose to 58, matching the second-highest level since 2005, from 54 in October. Analysts expected a smaller November gain. Also, the government reported a 0.2 percent gain in wholesale costs in October The dollar fell against the currencies of major U.S. trading partners. Light sweet crude oil for December delivery shed $1.03 to $74.61 a barrel on the New York Mercantile Exchange. Gold rose $13.60 to $1,197.10 an ounce. The Dow Jones industrial average finished at a record, adding 40.07, or 0.2 percent, to 17,687.82. The broader Standard & Poor's 500 index set another record, finishing up 10.48, or 0.5 percent, to 2,051.80. The technology-heavy Nasdaq composite index advanced 31.44, or 0.7 percent, to 4,702.44.