In order to assist other central banks handle the credit crisis, the Federal Reserve will offer $40 billion in emergency funds through an auction. The Dow leaped 123 points to 13,556 while Nasdaq jumped 42 points to 2695.

On the upside

Privately owned Rocket Software will pay $69 million to acquire NetManage (Nasdaq: NETM).

Emcore (Nasdaq: EMKR) will provide solar power systems to Pod Generating Group for a project in Ontario, Canada.

Maguire Properties (NYSE: MPG) is exploring strategic options including the possibility of selling the company.

On the downside

Stanford Research initiated coverage on Force Protection (Nasdaq: FRPT) with a Sell rating.

Nuance Communications (Nasdaq: NUAN) announced that it will sell 9.6 million shares of common stock while its largest shareholder Warburg Pincus will sell 4.8 million shares.

Office Depot (NYSE: ODP) warned that fourth quarter results will disappoint due to continued weakness in the housing market.

In the broad market, advancing issues outpaced decliners by a margin of more than 3 to 1 on the NYSE and by more than 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks surged 14 points to 780.