An unexpected drop in first time applications for unemployment benefits lifted the markets to a sharply higher open with the Dow surging 296 points to 11,016. Nasdaq leaped 77 points to 2458.

On the upside

Cisco (Nasdaq: CSCO) reported lower fourth quarter earnings but the results topped estimates and the company forecast current quarter revenue ahead of expectations prompting upgrades.

Fourth quarter earnings dropped for News Corp. (Nasdaq: NWSA) but the results beat analyst expectations and the company announced a possible expansion of its stock repurchase plan.

A123 (Nasdaq: AONE) will supply battery packs for all future General Motors (NYSE: GM) electric vehicles.

On the downside

SodaStream International (Nasdaq: SODA) reported higher second quarter earnings as revenue climbed and lifted its full year outlook but the stock price dropped over global economic concerns.

Open Text (Nasdaq: OTEX) reported higher fourth quarter earnings but the results fell short of expectations prompting a downgrade.

First quarter earnings rose for EnerSys (NYSE: ENS) but the results missed analyst estimates and the company forecast second quarter results well below expectations.

In the broad market, advancing issues outpaced decliners by a margin of 4 to 1 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks climbed 19 points to 680.