Closing Bell: Alibaba Jumps; Stocks Spike as Citigroup Beats

Stocks built upon earlier gains to end the day sharply higher. The financials sector enjoyed a rally, led by Citigroup (C) which spiked after earnings rose on lower legal costs. U.S.-listed shares of China-based Alibaba (BABA) boosted markets after the Chinese stock market rallied to an eight-week high. However, shares of the Chinese e-commerce company remain more than 20% lower than their debut price last year. The energy sector performed well even as crude oil closed near a two-week low. The price of the commodity dropped after a weekly rise in inventories exacerbated fears over a supply-demand imbalance. Valeant Pharmaceuticals (VRX) dropped after it received a subpoena from U.S. prosecutors for information on how it prices its drugs and helps patients afford medicines.