* Global leaders agree to $1 trillion emergency package
* Boeing jumps after Goldman raises to 'buy'
* McDonald's rises after April sales data
* Dow up 3.4 pct, S&P 500 up 3.7 pct, Nasdaq up 4.1 pct
* For up-to-the-minute market news see []
(Updates to mid-afternoon, changes byline)
By Edward Krudy
NEW YORK, May 10 (Reuters) - U.S. stocks surged on Monday
as an agreement on a $1 trillion emergency rescue package from
the EU quelled fears that a new credit crisis would derail
European economies.
The "shock and awe" bailout fund agreed by European
leaders in the early hours of Monday drove the S&P 500 to its
highest opening jump on record as indexes rushed back into
positive territory for the year after last week's sharp
slide.
Banks ranked among the top beneficiaries as the rescue
deal reduced fears of a possible default. The S&P Financial
index <.GSPF> climbed 4.4 percent and was one of the top
percentage gainers among S&P sectors. Bank of America Corp
<BAC.N> jumped 5.4 percent to $17.06.
The package of standby funds and loan guarantees available
to euro-zone governments shut out of credit markets is on the
scale of the U.S. government's $700 billion Troubled Asset
Relief Program in 2008 designed to stave off the credit crisis
and calm swooning markets. For details, see []
"Going into the weekend, there were doubts that the EU
would step up to the plate and I think the almost $1 trillion
package is impressive in terms of the dollar size and the fact
that members of the EU finally acted at a time when they were
needed," said Michael Sheldon, chief market strategist at RDM
Financial in Westport, Connecticut.
Some analysts cautioned, however, that longer-term
concerns remained over whether euro-zone nations saddled with
high debt loads would be able to manage their balance sheets.
The Dow Jones industrial average <> gained 349.54
points, or 3.37 percent, to 10,729.97. The Standard & Poor's
500 Index <.SPX> rose 41.33 points, or 3.72 percent, to
1,152.21. The Nasdaq Composite Index <> added 92.40
points, or 4.08 percent, to 2,358.06.
Howard Silverblatt, an analyst at Standard & Poor's, said
that based on records dating back to the late 1960s, the S&P
500's percentage and point gains at the opening were both
records. The broad-based index jumped 52.97 points at the open
-- a gain of 4.8 percent.
The Dow's surge is the biggest intraday move since March
2009, according to Dow Jones Indexes.
Although advancing stocks on the New York Stock Exchange
outnumbered decliners by nearly 20 to 1, volume was only
moderate compared with the massive volumes traded during the
sell-off on Thursday and Friday.
The CBOE VIX volatility index <.VIX>, known as Wall
Street's fear gauge, fell 26.2 percent to 30.23 after leaping
to its highest level in more than a year on Friday.
In another bullish sign, 88 percent of stocks in the S&P
500 remained in a long-term uptrend as of Friday, with their
50-day moving average above their 200-day moving average,
according to Concept Capital, a New York-based brokerage.
Boeing Co <BA.N> provided the biggest boost to the Dow,
climbing 6.2 percent to $70.87 after Goldman Sachs raised its
rating on the stock to "buy" from "neutral." []
McDonald's Corp <MCD.N> increased 3.8 percent to $70.61
after posting a rise in its April same-store sales.
[]
Suntech Power Holdings Co Ltd <STP.N> shot up 10.3 percent
to $11.57 after saying first-quarter revenue would beat Wall
Street expectations. []
On the downside, Dean Foods Co <DF.N> dropped 27 percent
to $10.72 after posting first-quarter earnings that missed
estimates and withdrew its full-year profit outlook.
[]
(Reporting by Edward Krudy; Editing by Jan Paschal)
