Wall Street jumps on Draghi comments

NEW YORK (Reuters) - Wall Street rose more than 1 percent on Thursday, putting the S&P 500 on track to snap a four-day losing streak, after the European Central Bank chief pledged to save the euro zone from collapse.

ECB President Mario Draghi said on Thursday the ECB would do what was necessary to protect the euro zone, including fighting high bond yields, a measure ECB officials had not previously suggested.

"Draghi's comments were quite exciting because this is something people always thought the ECB would not do," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

Policy makers have made similar statements about saving the euro before, but if these remarks result in decisive intervention in European bond markets, it could spur a sizable rally in stocks.

Shares in sectors more sensitive to risks in Europe and economic demand, such as energy-related stocks and financials, led the market. The PHLX oil service index <.osx> was up 2.8 percent, led by a 6.4 percent jump in National Oilwell Varco Inc , after the oilfield equipment maker posted results.

The number of Americans filing new claims for jobless benefits fell last week to near a four-year low, although the figures have been volatile of late due to summer factory shutdowns. Durable goods orders for June were better than expected, but a slip in pending home sales underscored the fragility of the economy.

"For weeks we've been seeing this tug of war between central bankers who want to prop things up, and the reality of the deteriorating economic conditions that are affecting earnings," said Peter Boockvar, equity analyst and portfolio manager at Miller Tabak & Co. in New York.

Zynga shares hit an all-time low, dropping 38.6 percent as the company slashed its profit outlook off of fading enthusiasm for its Facebook games. It was the most actively traded stock on the Nasdaq. [ID:nL4E8IQ3V5] Facebook , scheduled to report after the bell, saw its shares fall 6.8 percent. [ID:nL2E8IQ2SR]

Shares in Sprint Nextel Corp jumped 19.3 percent after the company posted earnings. Net operating revenue rose to $8.8 billion from $8.3 billion.

The Dow Jones industrial average <.dji> gained 186.07 points, or 1.47 percent, to 12,862.12. The Standard & Poor's 500 Index <.spx> rose 18.62 points, or 1.39 percent, to 1,356.51. The Nasdaq Composite Index <.ixic> advanced 31.11 points, or 1.09 percent, to 2,885.35.

Hopes that the Federal Reserve will boost efforts to stimulate a flagging economy, maybe with a decision to do so as early as at its rate-setting meeting next week, soothed concerns about the economy and offset the impact of what investors describe as a "mixed" corporate earnings season.

Of the 260 companies in the S&P 500 that have reported quarterly results to date, 66.5 percent have posted earnings above analyst expectations, according to Thomson Reuters data.

If the move higher by the market is sustained through the trading day it will lift the S&P 500 away from a technically important level around 1,333. The level marks a convergence of several technical factors, including the index's 50-day moving average, and has served as support for stocks.

Diversified manufacturer 3M was the top boost to the Dow, up 2.1 percent to $90.54 after beating estimates on Thursday.

(Reporting by Anna Louie Sussman; Editing by Bernadette Baum, Dave Zimmerman)

Source: http://news.yahoo.com/stock-index-futures-dip-raft-earnings-due-092215108--finance.html

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