motocrossMarkets were spurred on reports that the world's central banks might step in to save the economy.
First the scoreboard:
Dow: 13,157, +100.3, +0.7%

S&P 500: 1,411, +9.0, +0.6%

NASDAQ: 3,069, +16.2, +0.4%

And now the top stories:
  • The big story of the day was supposed to be the meeting of Greek Prime minister Antonis Samaris and German Chancellor Angela Merkel.  The question on everyone's mind was whether Greece would be granted more time to meet its deficit targets while still getting access to bailout funds.  However, the word from Merkel was that no decisions would be made before the Troika's report (IMF, EU, ECB).  The wait-and-see tone appeared to sap confidence from the markets.  The euro and European stocks tumbled.

  • The selling appeared to be exacerbated on an MNI report that Germany was looking into a temporary Greek exit from the euro.  Officials did not confirm or deny the rumor.

  • However, minutes before the European markets closed at 11:30 AM, Reuters reported that the European Central bank was looking into "setting yield band targets under a new bond-buying programme."  Effectively, this would put a limit on how high funding costs could rise for the troubled eurozone countries.  The euro bounced and European stocks turned positive after the headline crossed.

  • A little after 11:00 AM, the Wall Street Journal's Jon Hilsenrath published a letter from Federal Reserve Chairman Ben Bernanke to U.S. Representative Darrell Issa.  Here's the dovish statement that got everyone thinking more easy monetary policy is coming: "There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery."