Bargain Hunters Lift Markets To Higher Close

The markets closed higher with the Dow climbing 87 points to 7609 as investors snapped up bargains.  Nasdaq soared 27 points to 1529.

On the upside

Microsoft (Nasdaq: MSFT) will shutter the online version of its digital encyclopedia Encarta in October.

Deutsche Bank upgraded Alcoa (NYSE: AA) and Southern Cross Equities said that BHP should consider acquiring Alcoa.

Sallie Mae (NYSE: SLM) and Bank of America (NYSE: BAC) announced two new credit card programs to earn unlimited rewards for education expenses.

On the downside

Shares of auto parts supplier ArvinMeritor (NYSE: ARM) tumbled over fears of automaker bankruptcies.

Ford (NYSE: F) introduced its Ford Advantage Plan that offers zero-percent financing and a payment protection plan if the customer loses their job.

Shares of Sonic Automotive (NYSE: SAH) tumbled ahead of its earnings release after market close.

In the broad market, advancing issues outpaced decliners by a margin of more than 3 to 1 on the NYSE and by more than 2 to 1 on Nasdaq.  The Russell 2000 which tracks small cap stocks gained 7 points to 423.