By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks on Thursday piled new gains atop their biggest rise 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 from the U.S. and overseas in recent days have added "credence to bottom-up earnings forecasts previously viewed as too optimistic," said Stovall.

Poised for its first back-to-back sessions of triple-digit gains since July 26, the Dow Jones Industrial Average (DJI) was recently up 100.69 points, or 0.9%, to 11,356.17, with 25 of its 30 components rising, led by home-improvement retailer Home Depot Inc. (HD), up 5.8%.

The S&P 500 (SPX) gained 13.83 points, or 1.2%, to 1,219.9, with financial companies pacing gains and consumer staples the only lagging sector among its 10 industry groups.

The Nasdaq Composite Index (RIXF) added 27.02 points, or 1.1%, to 2,576.45.

For every stock that was declining, more than two stocks gained on the New York Stock Exchange, where volume neared 742 million shares as of 3:20 p.m. Eastern.

Before the opening bell, the government had reported that initial jobless claims increased by 26,000 to 436,000 last week, while the four-week average declined to a two-year low of 431,000.

"Claims did rise, but the overall trend is still showing a bit of improvement. Even though unemployment remains above 9%, at least it's not getting worse," said Stovall of S&P, which is forecasting that the Labor Department will report the addition of 165,000 jobs in November, about 15,000 greater than the Wall Street consensus.

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."

In Europe, ECB President Jean-Claude Trichet said the central bank would keep offering banks unfettered access to loans through the first quarter, helping to allay worries that Europe's sovereign-debt troubles would deepen.

U.S.-listed shares of Wimm-Bill-Dann Foods (WBD) surged 28% after PepsiCo Inc. (PEP) said it would buy a majority stake in the Russian company for $3.8 billion. .

 
 
Abercrombie and Fitch (NYSE:ANF)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Abercrombie and Fitch Charts.
Abercrombie and Fitch (NYSE:ANF)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Abercrombie and Fitch Charts.