Stocks posted solid gains, reclaiming a weekly advance as investors anticipated moves by the European Central Bank as well as the U.S. Federal Reserve. Stocks hit session highs after Bloomberg News reported European Central Bank President Mario Draghi would hold talks with Bundesbank President Jens Weidmann in an attempt to remove the biggest obstacles to adopting new measures including bond purchases. Starbucks lost 9.4%, ending as the worst performer on the S&P 500. Tech stocks also posted gains, with Amazon.com climbing 7.9% after the co.’s solid Q2 earnings. Meanwhile, Facebook slid 11.7% after disappointing earnings. This week investors will be watching central banks, as the U.S. Federal Reserve and the European Central Bank will both meet to discuss possible measures to boost the economy. But the most-watched reports will be on the nation's jobs picture, including initial and continuing jobless claims, ADP's employment report and the July jobs report due out on Friday. Automakers will also be in the spotlight, with General Motors and Toyota announcing earnings. Implied volatility inched below the 18 level on moderate trading volumes.
