Stock market tops 13,000 on vow to protect eurozone

Faced with Facebook, Starbucks and German Chancellor Angela Merkel, the market chose to focus on Merkel.

For a second day, the U.S. stock market powered higher after European leaders, including Merkel, pledged to protect the union of 17 countries that use the euro. The Dow Jones industrial average blew past 13,000, a key psychological marker that it hadn’t hit since early May.

It wasn’t that there weren’t any troubling signs about the economy. U.S. economic growth was anemic in the second quarter. A measure of consumer sentiment fell in July as people worried about their job prospects. And Facebook and Starbucks dropped sharply after reporting disappointing quarterly results.

But on this day, investors homed in on a couple of remarks coming from Europe.

Most notably, Merkel and French President Francois Hollande released a joint statement saying they were “determined to do everything to protect the eurozone.” That followed a similar pledge the day before from Mario Draghi, the president of the European Central Bank.

And the markets liked what they heard. The Dow obliterated the 13,000 mark, climbing 187.73 points to 13,075.66. In two days, it’s climbed 400 points.

The Standard & Poor’s 500 jumped 25.95 to 1,385.97. The Nasdaq composite index rose 64.84 to 2,958.09.

Geithner, central bank chief to meet, discuss global issues

Treasury Secretary Timothy Geithner will meet with Mario Draghi, the head of the European Central Bank, in Germany next week. The meeting comes after Draghi sparked optimism about a resolution to Europe’s financial crisis, saying he would do whatever it takes to save the euro.

The Treasury Department said Geithner is making the trip to discuss European crisis and other global economic issues.

Draghi’s comments raised expectations that he could step in to lower high borrowing costs for countries like Spain and Italy. They also started a stock market rally Thursday and Friday. The Dow Jones industrial average surged roughly 400 points.

Geithner will first with German Finance Minister Wolfgang Schaeuble in Sylt, Germany. He’ll then fly to Frankfurt for talks later in the day with Draghi.

CNN chief says he’s quitting, cites need for new leadership

CNN chief Jim Walton said Friday he is quitting, saying the company needs new leadership at a time its flagship U.S. network is suffering through some of its poorest ratings ever.

Walton built the company into a profitable international news organization in his 10 years as president of CNN Worldwide, and said it is on track for record profits this year.

But the U.S. network is the most visible part of the business and is now entrenched in third place behind rivals Fox News Channel and MSNBC in prime time.

He announced the decision in an email to staff members Friday. He said he’ll continue working until the end of the year during the company’s search for a successor.

Walton said he’s been talking to his boss, Turner Broadcasting Chairman Phil Kent, about leaving since the first few months of the year. CNN is owned by Time Warner.

— From news service reports