Stress Test Results Lift Investor Sentiment

Investors embraced results from the government's stress tests that banks must raise less capital than expected. The Dow jumped 164 points to 8574 while Nasdaq soared 22 points to 1739.

On the upside

Deutsche Bank analyst Rod Lache upgraded American Axle (NYSE: AXL) for its cost cutting initiatives and expects the auto parts supplier to survive the auto industry slump.

Relief that the government's stress test indicated that Marshall & Ilsley (NYSE: MI) must raise less capital than originally thought lifted shares of the regional bank.

A jury acquitted W. R. Grace & Co. (NYSE: GRA) along with three former executives on charges that they knowingly exposed mine workers to asbestos.

On the downside

Nvidia (Nasdaq: NVDA) swung to a loss for the first quarter as revenue tumbled and the graphics chip maker recorded a significant charge.

Heckmann (NYSE: HEK) blamed a goodwill impairment charge for reporting a loss for the first quarter.

Ramtron International (Nasdaq: RMTR) swung to a first quarter loss as revenue dropped.

In the broad market, advancing issues outpaced decliners by a margin of nearly 6 to 1 on the NYSE and by 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks leaped 18 points to 511.