By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Thursday extended their
biggest gain in three months as retailers beat Wall Street's
expectations and the European Central Bank said it would continue
stimulus measures.
ECB President Jean-Claude Trichet said the central bank would
keep offering banks unfettered access to loans through the first
quarter, while Abercrombie & Fitch Co. (ANF) and Target Corp.
(TGT) were among U.S. retailers reporting healthy jumps in
sales.
The Dow Jones Industrial Average (DJI) added 81.36 points to
11,337.14, with all but one of its 30 components rising.
The S&P 500 Index (SPX) rose 10.2 points to 1,216.23, with
industrials pacing gains and consumer staples the biggest laggard
among its 10 industry groups.
The Nasdaq Composite Index (RIXF) gained 14.2 points to
2,563.64.
For every two stocks that declined, five gained on the New York
Stock Exchange, where volume hit 247 million as of 10:40 a.m.
Eastern.
Ahead of Wall Street's start, the government reported initial
jobless claims increased by 26,000 to 436,000 last week, with the
level more than anticipated and coming ahead of Friday's monthly
jobs report.
The National Association of Realtors said its pending-home sales
index climbed 10.4% in October, with the trade group's chief
economist saying an improving labor market is giving a lift to the
housing industry, which was described as in a "recovery phase."
U.S.-listed shares of Wimm-Dann Foods (WBD) surged 27% after
PepsiCo Inc. (PEP) said it would buy a majority stake of the
Russian company for $3.8 billion.