Closing Bell Report
The nation's economy expanded more than expected while jobless claims dropped to boost the markets to a sharply higher close with the Dow jumping 213 points to 11,715. Nasdaq leaped 29 points to 2412.
On the upside
Investors snapped up shares of Circuit City (NYSE: CC) after the stock tumbled to a 20-year low yesterday. The electronics retailer is considering selling itself.
Shares of Ambac Financial (NYSE: ABK) surged after rival bond insurer MBIA (NYSE: MBI) announced the receipt of $741 million in premiums as part of reinsurance deal.
Keefe, Bruyette & Woods analyst Frederick Cannon issued a client note suggesting that investors may be engaging in illegal naked short selling of FirstFed Financial (NYSE: FED), which may adversely be affecting the stock price.
On the downside
Rumors that Medicare may lower payments for implanting some of Cyberonics' (Nasdaq: CYBX) epilepsy devices sent shares of the implantable medical device maker tumbling.
China Telecom (NYSE: CHL) disappointed with lower first half earnings as mobile service prices dropped.
Dell (Nasdaq: DELL) blamed restructuring charges and lower prices for second quarter earnings that fell to miss expectations.
In the broad market, advancing issues outpaced decliners by a margin of nearly 7 to 2 on the NYSE and by more than 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks leaped 15 points to 748.
