The markets surged to close sharply higher with the Dow leaping 122 points to 11,167 as jobless claims fell and earnings news improved. Nasdaq jumped 40 points to 2511.

On the upside

The Food and Drug Administration approved Dendreon's (Nasdaq: DNDN) prostate cancer vaccine Provenge.

Brunswick (NYSE: BC) narrowed first quarter losses more than expected as revenue rose.

iStar Financial (NYSE: SFI) reported narrower than expected losses for the first quarter.

On the downside

Openwave Systems (Nasdaq: OPWV) reported an unexpected loss for the third quarter as revenue fell.

Second quarter earnings for Green Mountain Coffee Roaster (NYSE: GMCR) surged but the company forecast third quarter results below estimates.

BP (NYSE: BP) said that the oil spill at the offshore Deepwater Horizon rig is costing approximately $6 million each day.

In the broad market, advancing issues outpaced decliners by a margin of more than 3 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks leaped 15 points to 737.