A surge in consumer spending sent the markets soaring during the midday with the Dow leaping 159 points to 13,405. Nasdaq jumped 34 points to 2675.

On the upside

Goldman Sachs Capital Partners (NYSE: GS) will invest up to $260.5 million in student load services provider First Marblehead (NYSE: FMD).

Shares of Netsuite (NYSE: N) continued to surge after making its market debut yesterday.

Royal Philips Electronics (NYSE: PHG) offered approximately $5.1 billion to acquire medical device maker Respironics (Nasdaq: RESP).

On the downside

Shares of Genitope (Nasdaq: GTOP) continued to fall by tumbling to an all time low after a failed drug trial for its cancer vaccine MyVax.

McCormick & Schmick's Seafood Restaurants (Nasdaq: MSSR) blamed weak traffic for lowering both its fourth qaurter as well as its full year outlook.

Jabil Circuit (NYSE: JBL) forecast second quarter earnings below analyst estimates.

In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 1 on the NYSE and by a margin of nearly 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks soared 13 points to 780.