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.
"A lot of consumers are experiencing recession fatigue for
having denied themselves," Sam Stovall, chief investment strategist
at S&P Equity Research, said of upbeat sales data from
retailers including Abercrombie & Fitch Co. (ANF) and Target
Corp. (TGT)
Better-than-expected economic reports in the U.S. and from
overseas in recent days have added "credence to bottom up earnings
forecasts previously viewed as too optimistic," said Stovall.
The Dow Jones Industrial Average (DJI) added 100.28 points, or
0.9%, to 11,356.06, with 24 of its 30 components rising, led by
home-improvement retailer Home Depot Inc. (HD) , up 3.3%.
The S&P 500 Index (SPX) rose 10.5 points, or 1%, to
1,218.57, with financial companies pacing gains and consumer
staples the biggest laggard among its 10 industry groups.
The Nasdaq Composite Index (RIXF) gained 22.91 points, or 0.9%,
to 2,572.35.
For every two stocks that declined, five gained on the New York
Stock Exchange, where volume topped 397 million as of 11:50 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."
And, ECB President Jean-Claude Trichet said the central bank
would keep offering banks unfettered access to loans through the
first quarter, helping allay worries that Europe's sovereign-debt
troubles would deepen.
U.S.-listed shares of Wimm-Dann Foods (WBD) surged 28% after
PepsiCo Inc. (PEP) said it would buy a majority stake of the
Russian company for $3.8 billion.