Upbeat earnings news lifted the markets higher during the midday with the Dow soaring 119 points to 12,725. Nasdaq surged 22 points to 2462.

On the upside

Terex (NYSE: TEX) will pay approximately $488 million to acquire construction equipment maker A. S. V. (Nasdaq: ASVI) .

Private equity firm Bain Capital will acquire Bright Horizons Family Solutions (Nasdaq: BFAM) for approximately $1.3 billion.

Yamana Gold (NYSE: AUY) CEO Peter Marrone expects the company to grow through 2010 as gold prices rise.

On the downside

Openwave Systems (Nasdaq: OPWV) announced the departure of chief financial officer Jean-Yves Dexmier and named vice president of finance Ann Brennan as interim CFO. The communications software company also appointed Charles Levine to the position of non-executive chairman.

Analysts downgraded Harman International Industries (Nasdaq: HAR) after the electronics maker slashed its 2008 guidance due to pricing competition in the portable navigation device sector.

Schering-Plough (NYSE: SGP) reported disappointing results for its cholesterol drug Vytorin.

In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 2 on the NYSE and by more than 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks added 2 points to 707.