The markets surged to close sharply higher after S&P affirmed its ratings for troubled bond insurers MBIA and Ambac Financial. The Dow leaped 189 points to 12,570 while Nasdaq soared 24 points to 2327.

On the upside

Mobile Mini (Nasdaq: MINI) will purchase Mobile Storage Group in a deal valued at approximately $701.5 million.

Standard & Poor's Ratings Services affirmed the "AAA" ratings for bond insurers MBIA (NYSE: MBI) and Ambac Financial (NYSE: ABK) saying that the companies will most likely raise enough funds to pay possible claims.

Goldman Sachs upgraded Aircastle (NYSE: AYR).

On the downside

Verenium (Nasdaq: VRNM) will offer $54 million in convertible senior notes.

ITT Educational Services (NYSE: ESI) lowered the bottom of its earnings expectation due to uncertainty that students will be able to secure loans.

Shares of Suntech Power Holdings (NYSE: STP) continued to fall after reporting earnings that fell short of estimates last week.

In the broad market, advancing issues outpaced decliners by a margin of more than 3 to 1 on the NYSE and by 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks soared 15 points to 710.