Stocks rallied after the European Central Bank signaled its intention to preserve the euro. Bond yields in Spain and Italy fell back under 7%. The National Association of Realtors reported its index of pending home resales fell 1.4% in June. Jobless claims declined more than expected last week, down 35,000 to 353,000. Orders for durable goods rising for a second month, up 1.6% in June. Telecoms led gains that included all of its 10 sectors. Sprint Nextel surged 20% after the co. reported increased spending by customers on data plans. Zynga dove 37.5% after disappointing quarterly results. Facebook dropped 8.5% ahead of quarterly report after the close. Akamai Technologies and Western Digital soared 24.0% and 20.9% after better-than-expected results and solid guidances. After the closing bell Facebook dropped 9.6% after the co. reported earnings in line with expectations but issued no forecast. Starbucks slid 11% after the co. issued soft forecast, citing weak consumer spending in Europe and higher commodity costs. Amazon.com gained 1.6% after the online retailer forecast a third-quarter operating loss of between $50 million and $350 million and revenue of $12.9 billion to $14.3 billion. Implied volatility inched lower on moderte trading volumes.
