The markets advanced during the midday with the Dow surging 213 points to 12,341 as hopes increased for additional stimulus measures by the Federal Reserve. Nasdaq jumped 54 points to 2832.

On the upside

Ulta Beauty (Nasdaq: ULTA) reported higher first quarter earnings that topped analyst estimates as revenue climbed.

InvenSense (NYSE: INVN) is hosting a booth at the Sensors Expo & Conference in Rosemont, IL today and tomorrow to showcase the company's MPU-3300, the world's first single-chip, high performance integrated 3-axis industrial gyroscope for the industrial market.

Bloomberg reported that Ancestry.com (Nasdaq: ACOM) retained the services of Qatalyst Partners to explore the possible sale of the company.

On the downside

FuelCell Energy (Nasdaq: FCEL) narrowed second quarter losses but revenue fell.

Shares of Mattress Firm Holding (Nasdaq: MFRM) plunged after Tempur-Pedic (NYSE: TPX) warned of sharply lower second quarter earnings.

Jefferies downgraded Rackspace Hosting (NYSE: RAX) to a Hold rating.

In the broad market, advancing issues outpaced decliners by a margin of more than 7 to 1 on the NYSE and by more than 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks surged 15 points to 762.