An unexpected gain in durable goods orders lifted the markets to a higher open with the Dow surging 159 points to 7818. Nasdaq leaped 34 points to 1550.

On the upside

Biodel (Nasdaq: BIOD) will submit a new drug application to the Food and Drug Adminstration for its diabetes treatment VIAject.

Analysts upgraded CB Richard Ellis Group (NYSE: CBG) after the real estate services firm changed its credit agreements.

Although Jabil Circuit (NYSE: JBL) widened second quarter losses, the results topped analyst estimates.

An unexpected gain in new home sales last month lifted shares of Beazer Homes (NYSE: BZH) and Hovnanian Enterprises (NYSE: HOV).

On the downside

DryShips (Nasdaq: DRYS) blamed a goodwill impairment charge along with contract termination fees for swinging to a loss for the fourth quarter.

FBR Capital Markets analyst Craig Berger downgraded Atmel (Nasdaq: ATML) despite expectations of revenue growth saying that the stock has already risen.

In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 1 on the NYSE and by nearly 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks climbed 7 points to 424.