Consumer confidence tumbled in May but the markets opened sharply higher with the Dow leaping 153 points to 12,608 over speculation that China may announce additional stimulus measures. Nasdaq jumped 43 points to 2880.

On the upside

Teledyne Technologies (NYSE: TDY) will acquire LeCroy (Nasdaq: LCRY) in a deal valued at approximately $291 million.

Interline Brands (NYSE: IBI) agreed to be taken private by GS Capital Partners and P2 Capital Partners in a deal valued at approximately $1.1 billion including the assumption of debt.

Goldman Sachs upgraded Peabody Energy (NYSE: BTU) to a Buy rating with a $37 price target.

On the downside

Vertex Pharmaceuticals (Nasdaq: VRTX) corrected previously released data from an interim analysis of a Phase 2 clinical trial of its cystic fibrosis treatments VX-809 and Kalydeco.

VeriFone (NYSE: PAY) responded to investor questions by releasing additional detailed cash flow data.

Shares of Banco Santander (NYSE: STP) fell after the announcement of a $24 billion government bailout of Spain's third largest bank Bankia.

In the broad market, advancing issues outpaced decliners by a margin of more than 6 to 1 on the NYSE and by nearly 7 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks soared 10 points to 776.