Stocks are set to end the week much higher after comments by European leaders cheered investors. MACRO NEWS: European Central Bank Mario Draghi sparked a large rally yesterday by saying that the bank would do whatever is necessary, within its mandate, to preserve the euro. "And believe me, it will be enough," Draghi emphatically added ...The rally gained more momentum today after investors were comforted by comments from German Chancellor Angela Merkel and French President Francois Hollande who said that they, too, would do everything in their power to preserve the euro...U.S. economic data also lent a hand to the rally, as GDP, jobless claims, and an index of consumer sentiment all beat expectations. COMPANY NEWS: Facebook (FB) tumbled after the company's Q2 operating margins came in below expectations and its revenue growth slowed. Some on the Street were also upset by the company's spending increases...Starbucks (SBUX) also slumped after reporting lower than expected Q2 results. Moreover, the company lowered its Q3 guidance, citing slowing sales amid economic headwinds....On the other hand, Caterpillar (CAT), Visa (V) and Merck (MRK) all reported stronger than expected results.
Yahoo Inc will buy blogging service Tumblr for $1.1 billion cash, giving the Internet pioneer a much-needed social …