The markets opened sharply higher with the Dow surging 1551 points to 12,279 over optimism that the European Central Bank will do more to assist ailing banks. Nasdaq leaped 41 points to 2819.

On the upside

Iron Mountain (NYSE: IRM) increased its quarterly dividend to $0.27 per share payable on July 13, 2012 to shareholders of record June 22, 2012. The information management and storage services company also announced that it will convert into a Real Estate Investment Trust.

Hovnanian Enterprises (NYSE: HOV) swung to a second quarter profit as revenue climbed.

Warren Buffett's Berkshire Hathaway acquired a 3.2% stake in Lee Enterprises (Nasdaq: LEE).

On the downside

Select Comfort (Nasdaq: SCSS) eliminated its chief operating officer position and created a senior leadership team including the addition of Michael Bills as senior vice president and chief marketing officer.

Tempur-Pedic International (NYSE: TPX) warned of sharply lower second quarter earnings and slashed its full year earnings and revenue guidance.

Kinder Morgan (NYSE: KMI) priced its secondary offering of 63 million common shares at the discounted price of $31.88 per share.

In the broad market, advancing issues outpaced decliners by a margin of more than 8 to 1 on the NYSE and by more than 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks soared 10 points to 756.