Market breaking news 5/12/11

1. Stocks rallied at the open Monday as French President Nicolas Sarkozy and German Chancellor Angela Merkel met ahead of a key summit and after Italy's new government unveiled austerity measures.

All 30 Dow components opened higher, led by JPMorgan and BofA.

2.  Merkel, Sarkozy: Franco-German Accord Is Very Complete; Sarkozy: Germany, France Want New Treaty.

3. Stocks rallied Monday after French President Nicolas Sarkozy and German Chancellor Angela Merkel said they had completed an agreement on a plan to help resolve the euro zone debt crisis and after Italy's new government unveiled austerity measures.

All S&P sectors were higher, led by banks.

4.  Standard & Poor's put 15 European nations on watch for a possible credit rating downgrade. The only two euro zone nations that aren't on the list are Greece and Cyprus.