Stocks Surge on Eurozone Bailout Hopes

U.S. stocks are up sharply Monday as investors are focusing on positive developments related to the European credit crisis and getting long exposure ahead of third-quarter earnings season.

UPDATE: The Dow closed up 330 points, the Nasdaq added 87 and the S&P 500 rose 39.

In Europe, Germany's Angela Merkel and France's Nicolas Sarkozy promised a "comprehensive response" to capitalize banks by the end of the month.

After the market closes on Tuesday, Aloca (NYSE: AA) unofficially kicks off the third-quarter earnings season. Investors are looking for the company to post EPS of $0.22 on revenue of $6.24 billion. Shares are up 13 percent over the last week.

Traders are also talking about Netflix Nasdaq: NFLX), which is reversing plans to separate its DVD and streaming websites. Shares are up nearly 5 percent Monday.

Apple (Nasdaq: AAPL) is breaking records still. The iPhone maker said pre-orders of the new 4S model topped 1 million in the first 24 hours. The prior single-day record was 600,000 for the iPhone 4.

Gold is up $30 to $1,666 mid-day Monday.

The bond market is closed for the Columbus day holiday.

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