Why the Dow soared 211 pointsReported by Proactive Investors on Thursday, 26 July 2012 (on July 26, 2012)
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By close the Dow was up 211.88 points to 12,887.93, the S&P 500 rose 22.13 points to 1,360.02 and the Nasdaq improved 39.01 points to 2,893.25.
European Central Bank president Mario Draghi addressed an investment conference in London saying the ECB would do whatever it takes to preserve the euro, suggesting the ECB may start buying bonds again in an effort to help bring down skyrocketing borrowing costs in places like Spain and Italy.
Spain's borrowing costs remain unsustainably high, with its 10-year yield sitting at about 7%, after touching an all-time high of 7.75% Wednesday.
Meanwhile, on the U.S economic front, the Labor Department said Thursday that applications fell to a seasonally adjusted 353,000. That’s down from a revised 388,000 the previous week and the biggest drop since February 2010.
The four-week average, a less volatile measure, declined 8,750 to 367,250. That’s the lowest level since the end of March.
*U.S. corporate news *
Facebook Inc (NASDAQ:FB) shares were down almost eight per cent Thursday afternoon, ahead of the company’s highly anticipated, first earnings report as a public company.
Shares of the company were down $2.25, trading at $27.09 as at 3:20 pm ET.
Theatre systems maker Imax Corp. (NYSE:IMAX) said Thursday it booked a sharply higher profit in the second quarter, driven by healthy box office results from The Dark Knight Rises and global network expansion. For the quarter that ended June 30, Imax reported a net profit of $11.1 million, or 16 cents per diluted share.
Software company Zynga (NASDAQ:ZNGA) saw its stock plunge more than 38 per cent Thursday, a day after reporting it swung to a second-quarter net loss and missed analyst targets, cutting its earnings view for the year. Its stock caused shares of Facebook to fall.
Sprint Nextel (NYSE:S) Thursday announced it had increased its 2012 forecast, as revenues grew despite an increase in its second-quarter loss. Shares were up over 20 per cent on the news that customers spent more on data plans.
Exxon Mobil (NYSE:XOM) said Thursday its second quarter profit was up 49 per cent as asset sales offset lower production volumes and volatile commodity prices.
The Colgate-Palmolive Co.’s (NYSE:CL) second quarter profit rose nearly one per cent thanks to higher sales, amid increased prices and wider margins.
The Dow Chemical Co. (NYSE:DOW) said Thursday second quarter earnings and sales fell, mainly due to weak product demand, softness in Europe, and a stronger dollar.
News giant The New York Times Co. (NYSE:NYT) saw shares rise more than 11 per cent after releasing better-than-expected second quarter results Thursday that showed readership growth, which helped offset declining ad sales.
Garbage hauler Waste Management (NYSE:WM) said fiscal second-quarter profits fell 12 per cent on Thursday, and also announced restructuring plans that will see 700 jobs lost.
Internet content delivery company Akamai Technologies (NASDAQ:AKAM) saw shares rise Thursday, a day after announcing second quarter sales rose 20 per cent year-over-year, and adjusted income was up 18 per cent.
*Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.*
Links:  Full news story
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