EUROPE AGAIN: Italy's benchmark stock index leapt 3.7 percent and its borrowing costs plunged after the country's Senate passed a crucial austerity budget demanded by the European Union. Other European stock markets and the euro also pushed higher as investors became more confident that Italy would avoid a fiscal disaster.

UP WEEK: Friday's rally sent the Dow up 1.4 percent for the week. The S&P 500 rose 0.8 percent.

THE DOW: The Dow Jones industrial average jumped 259.89 points, or 2.2 percent, to 12,153.68. It closed below 12,000 the previous two days.