The markets opened higher after modest inflation numbers raised hopes that the Federal Reserve would not raise interest rates. The Dow surged more than 100
points to 12,255 while Nasdaq soared 40 points to 2444.
On the upside
Shares of US Airways Group (NYSE: LLC) rose after the carrier announced plans to cut flights and add a $15 surcharge for passengers to check in their first bag.The Knot (Nasdaq: KNOT) was upgraded by an analyst for the online wedding service provider's dominant position and strong product offering.
Analysts expectED Research in Motion (Nasdaq: RIMM) to grow its market share despite new offerings from competitors.
On the downside
Shares of Yahoo (Nasdaq: YHOO) collapsed following an announcement of no imminent sale to Microsoft (Nasdaq: MSFT). A possible advertising partnership with Google (Nasdaq: GOOG) also failed to impress investors.An analyst warned that Fifth Third Bancorp (Nasdaq: FITB) may cut its dividend by up to 50% and raise capital to shore up its balance sheet.
Investor dumped shares of Coca-Cola Hellenic Bottling (NYSE: CCH) after the 2nd largest bottler for Coca-Cola (NYSE: KO) lowered its profit outlook due to slower growth in Europe and rising costs.
In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 1 on the NYSE and by more than 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks jumped 10 points to 730.
