(By Balachander) U.S. stocks closed the second quarter on a sharply higher note as European leaders' agreement to stimulate the euro zone economy alleviated concerns over the region's debt woes.
S&P 500 Index jumped 2.49 percent to finish at 1,362.16. The Dow Jones Industrial Average surged 2.20 percent to end at 12,879.56. The Nasdaq Composite Index leaped 3.00 percent to close at 2,935.05.
Investors, who were little optimistic ahead of the two-day European Union summit in Brussels, cheered a set of measures from European leaders who have agreed to make use of euro area rescue funds to recapitalize the region's ailing banks. EU leaders reportedly hope for implementation of the bank agreement by July 9.
On domestic economic front, U.S. personal income rose 0.2 percent and personal spending fell less than 0.1 percent for May, a data from the Bureau of Economic Analysis showed. Economists expected income and spending to be held steady at 0.2 percent and 0.1 percent, respectively. A report from the University of Michigan and Thomson Reuters showed consumer-sentiment reached a six-month low in June.
Hot Stocks Of The Day: NKE, RIMM, STZ, KBH, F, NOW, TIBX, VCLK, FINL, SWHC, ACN
In corporate news, Nike Inc. (NYSE:NKE) slumped 9.43 percent after the athletic footwear maker posted weaker-than-expected quarterly earnings amid drop in gross margins due mainly to rise in product costs and higher investments in the company's digital business.
Research In Motion Ltd. (NASDAQ:RIMM) retreated 19.06 percent after the Blackberry maker forecast an operating loss in the second quarter amid increasing competition and product delays. The company also plans to cut 5,000 jobs.
Constellation Brands Inc. (NYSE:STZ) surged 24.36 percent after the beverage company reported better-than-expected adjusted quarterly earnings. The company also announced it will acquire the remaining 50 percent stake of Crown Imports LLC that it doesn't already own for $1.85 billion.
KB Home (NYSE:KBH) added 12.64 percent after the homebuilder posted reported a narrower-than-forecast loss for the second quarter as revenue rose 11 percent, helped by rise in number of homes delivered and average selling prices.
Ford Motor Co. (NYSE: F) retreated 4.96 percent. The auto giant warned it expects a loss of around $570 million in its operations outside North America in the second quarter, mainly due to the struggling economy in Europe.
Service Now Inc. (NYSE: NOW) soared 34.86 percent. The San Diego-based cloud-computing company made a strong public debut today. The company raised $210 million from its initial public offering (IPO).
ValueClick Inc. (NASDAQ: VCLK) rallied 16.31 percent after the digital marketing services provider forecast second-quarter revenue to be at the high end of its prior view.
Tibco Software Inc. (NASDAQ:TIBX) added 11.52 percent after the software maker posted second quarter results topping Wall Street projections.
Finish Line Inc. (NASDAQ:FINL) jumped 11.94 percent after the retailer of athletic apparel raised its earnings and sales forecast for the full year.
Accenture Plc (NYSE:ACN) rose 6.09 percent after the provider of technology and outsourcing services posted quarterly earnings that beat market expectations and guided full year revenue growth above consensus estimates.
Smith & Wesson Holding Corp. (NASDAQ:SWHC) added 20.61 percent after the maker of firearms issued an upbeat sales forecast for the first quarter and fiscal 2013.
European markets closed solidly higher, with Germany's DAX up 4.33 percent to close at 6,416.28. France's CAC40 added 4.75 percent to finish at 3,196.65. U.K.'s FTSE 100 advanced 1.42 percent to end at 5,571.15.
Asian markets rose tracking global cues. China's Shanghai Stock Exchange Composite Index added 1.36 percent to trade at 2,225.78. Hong Kong's Hang Seng advanced 2.19 percent to close at 19,441.46. Japan's Nikkei 225 jumped 1.50 percent to end at 9,006.78. India's BSE Sensex finished at 17,429.98, up 2.59 percent.
Commodity & Currency Scan:
Crude oil futures jumped 9.04 percent to $84.710 per barrel and natural gas futures rose 3.75 percent to $2.824 per million metric British thermal units. Gold futures gained 3.25 percent to $1,600.80 per ounce and silver futures added 4.81 percent to $27.555 per ounce.
In the currency market, the euro rose 1.67 percent against the U.S. dollar to 1.2651. The British pound advanced 0.92 percent against the greenback to 1.5662, and the dollar gained 0.62 percent against the Japanese yen to 79.9400.