NEW YORK -- The S&P 500 and Nasdaq turned positive for the year as U.S. stocks rallied Thursday on the back of a larger than anticipated stimulus from the European Central Bank.
The ECB will buy 60 billion euros worth of assets a month, more than markets had been hoping for, in a program that will last through September 2016.
The choppiness seen early during the Wall Street session was due to some lingering questions about the effect of the announced measures on U.S. markets, said David Lebovitz, Global Market Strategist for J.P. Morgan Asset Management.
But as investors digested the details of the program it became more clear that the ECB was accomplishing exactly what it intended to.
"This is really the bazooka people had been looking for in the past years," Lebovitz said.
He said the sectors most likely to gain from the ECB move would be "anything that benefits from a stronger European economy," with bank and other cyclical stocks leading.
Banks led gains Thursday with the S&P 500 financials up 2.45 percent.
Wells Fargo (WFC) and Bank of America (BAC) rose 3.2 percent and 4.4 percent, respectively.
The Dow Jones industrial average (^DJI) rose 259.7 points, or 1.48 percent, to 17,813.98, the Standard & Poor's 500 index (^GPSC) gained 31.03 points, or 1.53 percent, to 2,063.15 and the Nasdaq composite (^IXIC) added 82.98 points, or 1.78 percent, to 4,750.40.
Shares in Europe jumped 1.6 percent to close at a seven-year high.
After the closing bell, Starbucks (SBUX) shares rose 3.2 percent to $85.41 after sales at established restaurants in its Americas region were slightly stronger than analysts' estimate.
American Express (AXP) was the largest points weight on the S&P 500, down 3.8 percent to $84.37, a day after it said it would cut more than 4,000 jobs this year as expenses and provisions for bad loans rose.
F5 Networks (FIVE) slumped 10 percent to $113.40. The network equipment-maker's revenue missed expectations for the first time in eight quarters. It also forecast current-quarter revenue and profit below estimates.
Avon Products (AVP) shares jumped as much as 20.1 percent after Dealreporter said the company was in talks with private-equity firm TPG Capital about a potential transaction, citing three industry sources. Avon shares closed up 14.6 percent at $8.66.
Volume was slightly above the norm with about 7.7 billion shares changing hands on U.S. exchanges, above the daily average of 7.27 billion so far this month.
NYSE advancing issues outnumbered decliners 2,428 to 651, for a 3.73-to-1 ratio; on the Nasdaq, 2,015 issues rose and 746 fell, for a 2.70-to-1 ratio.
The S&P 500 was posting 78 new 52-week highs and 5 new lows; the Nasdaq composite was recording 61 new highs and 73 new lows.
What to watch Friday:
At 10 a.m., the National Association of Realtors reports existing home sales for December, and the Conference Board releases leading indicators for December.
These selected companies are scheduled to release quarterly financial results:
Market Wrap: Stocks Gain as ECB Prepares to Flood Markets
This might sound crazy, but hear me out: If you're ravenous by the time you reach the restaurant, you'll be tempted to order more. Sheer willpower isn't enough to stop you from ordering more than you can chew. Nibble on a snack before you head out, so that you can order from the menu with a cool head.
Drinks can add a lot to your final bill, especially if they're adult libations. Stick with plain ol' tap water to avoid the cash drain (and empty calories). If you'd still like to have a drink or two before dinner, sip a cocktail at home instead. Just make sure you have a designated driver.
At many restaurants, appetizers and dessert items cost just as much as an entree, so opting to pad your meal with these extras can double or even triple your total cost. And it may be too much food, too, which can lead to a big waste or big waist. Rather than getting a whole spread, focus on ordering one main entrée and really savoring it.
Still want a little something sweet for dessert? Why not offer to spit something with others at your table? You'll each get a taste, and you can each split the bill. This works with everything from appetizers to main entrees -- if you'd like to try several different dishes, order a few for the table and share them family-style.
Many restaurants (especially large chains) serve ridiculously sized portions. A plate of pasta could feed a family of four; a sandwich with fries could make up two meals. Rather than stuffing yourself silly, plan on making several meals out of your order and take home leftovers for some "free" meals later on. To avoid being tempted to keep eating once you're full, divvy up your food when it arrives, like putting half of it on a separate plate so you know it's off-limits.
Restaurants know most people are in a rush around lunch time, and they're looking for a faster turnaround to get more customers in (and out) the door. Take advantage of the lower prices (and smaller portions) you'll find at lunch -- and you can have a meal that's just as high-quality but a bit lighter on your wallet.
Plenty of daily deals sites like Amazon Local, Scoutmob and Groupon offer vouchers for local restaurants for deals like "buy one, get one free" meals, percentages off your total bill and more. Just make sure you read the fine print before you buy -- some places won't allow you to use vouchers on busy days or times or may require you purchase a certain amount to qualify. Some may be used in more than one visit (so you can spread out your savings), while others must be used all at once.
Buy an entertainment book for a slew of great coupons for local restaurants, service providers and more that are good through the end of the year. Google your city's name plus "coupon book" to find local variations, or look through your local newspaper. (Remember those?) Sometimes, bundles of coupons are mailed to you. If you can combine a coupon with other savings, like using a reward card or a military or senior discount, you can shave a decent-sized bill down to next to nothing.
Many restaurants offer special discounts and deals to loyal customers who engage with them on social media or through email. Join restaurant email lists, "like" the business on Facebook and follow them on Twitter to receive regular deals, special discounts and announcements of upcoming promos.
If you've got children in tow, find out what restaurants offer "kids eat free" days and plan your meals out for those times. If you've got several children in tow, this could help you save money with minimal effort.