Merger and acquisition activity boosted the markets to a sharply higher open with the Dow soaring 101 points to 17,103. Nasdaq gained 27 points to 4565.

On the upside

Roche will pay a premium of approximately $8.3 billion in cash to purchase InterMune (Nasdaq: ITMN).

Burger King (NYSE: BKW) engaged in negotiations to acquire Tim Hortons (NYSE: THI).

Shares of Digital Ally (Nasdaq: DGLY) surged again in anticipation of significant orders from law enforcement agencies for the company's body camera.

On the downside

Qihoo 360 Technology (NYSE: QIHU) reported higher second quarter earnings as revenue surged but margins fell.

Regado Biosciences (Nasdaq: RGDO) ended a Phase 3 trial of its coronary artery disease treatment Revolixys due to safety concerns.

58.com (NYSE: WUBA) stock extended its losses.

In the broad market, advancing issues outpaced decliners by a margin of more than 5 to 2 on both the NYSE and on Nasdaq. The broader S&P 500 climbed 11 points to 1999. Bitcoin slipped $5 to $503.