Service Sector Expands, Markets Close Sharply Higher

The nation's service sector continued to expand in August lifting the markets to a sharply higher close with the Dow leaping 193 points to 10,944. Nasdaq jumped 55 points to 2399.

On the upside

Speculation that the Environmental Protection Agency will approve the E15 ethanol fuel blend lifted shares of ethanol producer BioFuel Energy (Nasdaq: BIOF).

Flagstar Bank (NYSE: FBC) introduced a new line of products and services for small businesses.

Skechers (NYSE: SKX) unveiled its Shape-Up N'Go iPhone app for tracking and sharing exercise activities while wearing its line of Shape-up shoes.

On the downside

Seeking Alpha contributor Isaac Silbermann suggested that management at China Agritech (Nasdaq: CAGC) was corrupt.

MaxLinear (NYSE: MXL) lowered its revenue outlook for the third quarter as clients cut orders.

The Securities and Exchange Commission will charge Satyam Computer Services (NYSE: SAY) with civil fraud related to the $1 billion accounting scandal that rocked the investment world in January 2009.

In the broad market, advancing issues outpaced decliners by a margin of more than 4 to 1 on both the NYSE and on Nasdaq.