US stocks soar amid GM interest

US stocks closed higher today as investors were emboldened by decent earnings, a handful of mergers and billionaire investor Kirk Kerkorian’s bid to substantially add to his stake in General Motors.

The Dow Jones industrials soared more than 125 points.

Wall Street enjoyed a broad rally as investors seemed to shrug off some of the worries that have dogged stocks in recent weeks.

The possible return of the 30-year bond was the biggest news of the day, but analysts said what really lured stock buyers back from the sidelines was Kerkorian’s commitment to troubled vehicle manufacturer GM.

Considered a smart value investor, Kerkorian’s unexpected move may have restored some faith in the market, which ultimately could turn sentiment around.

The Dow closed up 127.69, or 1.2%, at 10,384.64, largely thanks to the 18% rise in GM’s share price.

Broader stock indicators were also higher.

The Standard & Poor’s 500 index gained 14.48, or 1.25%, to close at 1,175.65. The Nasdaq composite index rose 29.16, or 1.5%, to 1,962.23.

The announcement that the US government is considering bringing back the 30-year Treasury rattled the bond market, sending the yield on the 10-year note to 4.19%, up from 4.17% late on Tuesday.

The Russell 2000 index of smaller companies was up 10.74, or 1.84%, at 595.22.