European outlook boosts U.S. market

Economic news at home overshadowed by overseas pledge.

NEW YORK — Faced with Facebook, Starbucks and Angela Merkel, the market chose to focus on Merkel.

For a second day, the U.S. stock market powered higher after European leaders, including German chancellor 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.

Investors decided to ignore troubling news about the U.S. economy and homed in on 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.”

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

Among stocks making big moves:

Starbucks fell 9 percent, losing $4.94 to $47.47. Investors were disappointed that the company cut its outlook for the current quarter, and is considering closing unprofitable stores in Europe.

Facebook fell 12 percent, giving up $3.14 to $23.70. Investors were disappointed that the company, in its first quarterly report since going public, reported a slowdown in revenue growth. It has now lost nearly 38 percent of its value since its initial pricing at $38.