Rumors of further economic stimulus measures sent the markets soaring to a sharply higher close with the Dow rocketing 286 points to 12,414. Nasdaq leaped 66 points to 2844.

On the upside

Terex (NYSE: TEX) said that its full year income may be impacted by the weak euro but the heavy equipment maker affirmed its earnings outlook.

A Seeking Alpha contributor listed MEMC Electronic Material (NYSE: WFR) as one of three speculative stocks with the potential for a rally.

Digital Generation (Nasdaq: DGIT) rejected an acquisition offer from rival Extreme Reach.

On the downside

Halliburton (NYSE: HAL) warned that the soaring cost of blending additive guar gum will negatively impact second quarter earnings.

Patriot Coal (NYSE: PCX) sued Keystone Industries saying that Keystone failed to honor a purchase contract.

Barrick Gold (NYSE: ABX) removed its chief executive officer Aaron Regent effective immediately.

In the broad market, advancing issues outpaced decliners by a margin of more than 7 to 1 on the NYSE and by nearly 5 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks surged 19 points to 765.