Stocks Jump Sharply On Unexpected News (VPHM, ACI, SHLD, PBY, IPSU)

U.S. stocks jumped sharply on Tuesday on reports of the U.S. manufacturing sector, which unexpectedly grew at a faster rate last month, easing recent jitters about a slowdown in the economic recovery.The Dow Jones industrial average rose 112 points, or 0.85%, to 13,326. The S&P 500 Index gained 16 points, or 1.15%, to 1,414. The Nasdaq Composite added 34 points, or 1.13% to 3,080.50.

The Institute for Supply Management said Tuesday its survey of senior executives in the manufacturing sector rose to 54.8% from 53.4% in March, the highest reading since June 2011. Economists polled by MarketWatch had expected the April index to fall slightly, to 53.3%.Manufacturers got a boost from a warmer winter than usual, economists say, but the broad strength of the ISM report suggests the industry has found a nice groove, especially compared to other parts of the economy.The ISM’s April nonmanufacturing survey is due Thursday, a day before the government’s report on nonfarm payrolls and unemployment for the same month.

Viropharma Inc(NASDAQ:VPHM) shares slumped 9% the company reported a poor-than-estimated first-quarter earnings, after which the company to trimmed its full year revenue outlook. The companies now estimate to generate revenue in the range of $450 million to $500 million, from its previous forecast of $600 million to $660 million. Analysts are expecting $502.4 million. The company earned $20.0 million, or 26 cents per share in the latest quarter, down from a year ago profit of $20.0 million, or 26 cents per share. On an adjusted basis, the company would have earned 31 cents a share, missing analysts’ forecast by 11 cents.

Arch Coal Inc(NYSE:ACI) is showing high volatility was recently down marginally after gaining 5% earlier in the session despite the company the company reported a steep decline in its first-quarter due to a slump in coal prices and weak demand from U.S. power companies. Moreover, the company reported a surprise adjusted loss.The company earned $1.21 million or $0.01 per share, compared to a year ago profit of $55.6 million or $0.34 per share a year ago. Excluding various costs, the company would have lost 4 cents, compared analysts’ estimates of a profit of 16 cents a share.
Sears Holdings Corporation(NASDAQ:SHLD) shares soared 21% to $65.02 after as it expects to report that operations have markedly improved at its namesake stores when the retailer reports first quarter results later this month. The improvement leaves Sears anticipating results for the period that are far better than Wall Street analysts had forecast.The Pep Boys - Manny, Moe & Jack(NYSE:PBY) slumped 24% after forecasted a sharp decline in first-quarter profit, disappointing results that come in the midst of the auto-care company's efforts to go private.
Imperial Sugar Company(NASDAQ:IPSU) soared 58% after the company was agreed to be acquired by commodities trading company Louis Dreyfus Commodities LLC in an all-cash deal that values the refined sugar processor at roughly $78 million.