Brendan Mcdermid / REUTERSTraders working on the floor of the New York Stock Exchange Wednesday.
Dow soars over 200 amid signs of urgent moves in Europe
Stocks rallied Wednesday amid signs of urgent moves in Europe to rescue Spain's troubled banks, but comments from the president of the European Central Bank disappointed some in the market hoping for further stimulus to tackle the euro zone's debt crisis.
Resisting international pressure to provide more support for the euro zone's ailing economy, the ECB held its main interest rate a 1 percent Wednesday. ECB President Mario Draghi said it is "no(t) right for monetary policy to fill others' lack of action," suggesting there would be no more long-term lending to banks unless governments come up with solutions.
"Bottom line, Draghi didn't bring the meat the market dogs were hoping for as he seems to be standing pat for now, likely waiting for more stress to develop before announcing something new of substance," said Peter Boockvar, equity strategist at Miller Tabak + Co in New York.
The Dow Jones industrial average was lately up over 200 points and enjoying its best day since March 13.
After the market dropped more than 6 percent in May and saw a three-day slide to close out the prior week, the market was ripe for a rebound, analysts said.
A gloomy jobs report and signs of a global economic slowdown hammered Wall Street Friday, wiping out the stock market’s gains for 2012. However, Wednesday’s advance lifted stocks back into positive territory for 2012.
Germany and European Union officials are urgently exploring ways to rescue Spain's banks although Madrid has not yet requested assistance and is resisting political conditions, several EU sources said on Wednesday.
Nonfarm productivity fell more than expected in the first quarter, as companies gave more hours to employees but only modestly expanded output.
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Separately, the Federal Reserve said economic growth in the United States picked up over the two prior months and hiring showed signs of a "modest increase."
"Reports from the twelve Federal Reserve Districts suggest overall economic activity expanded at a moderate pace during the reporting period from early April to late May," the central bank said in its latest "Beige Book" summary of national activity.
The Fed's previous Beige Book assessment of the economy, released on April 11, had painted growth in a more timid light, describing it as "modest to moderate."
Facebook is making it easier for advertisers to reach the growing ranks of users on smartphones and mobile devices, taking a significant step toward addressing one of investors' most pressing concerns and broadening its appeal to marketers.
Shares of Tempur-Pedic International fell 47 percent after the mattress company revised its full year forecast.
Moody's Investors Service cut the credit ratings of six German banking groups and Austria's three largest banks on Wednesday, saying they face risks if the euro zone crisis deepens.
Reuters contributed to this report.
CNBC's Steve Liesman provides perspective on the European Central Bank's decision to keep rates unchanged.
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