Amazon Primed

Strong earnings from and favorable economic news gave stock market bulls reason to celebrate on Wednesday.

Shares of Amazon soared nearly 16% after the company silenced its critics at least temporarily by beating estimates and raising forecasts. Margins rebounded, and the company benefited from strong third-party sales.

The broader market rallied on economic data and reports that portrayed a strong economy with low inflation. Second-quarter GDP will be released Friday morning.

The Nasdaq rose 10 to 2186, the S&P climbed 5 to 1236, and the Dow rose 57 to 10,637. Volume rose to 2 billion shares on the NYSE, and 1.82 billion on the Nasdaq. Advancers led 19-13 on the NYSE, and 16-14 on the Nasdaq. Upside volume was 63% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 231-35 on the NYSE, and 165-20 on the Nasdaq.

After the close, CA reported that profits doubled and announced 5% layoffs. LSI beat estimates, but the company’s revenue guidance was a little light. Digital River surged after beating estimates.

During the day, Corning and Sprint gained 5% each on their results, and telecom stocks also benefited from a sweeping new reform bill.

Sun Microsystems , Monster and Citrix rose on their results.

InfoSpace , Siebel , Novatel , Atmel , Quantum and Sanmina fell on their earnings reports.

Iomega edged higher after announcing 30% job cuts.

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