The Associated Press March 3, 2011, 11:49AM ET text size: TT

Stocks rise sharply after unemployment claims fall

By MATTHEW CRAFT and DAVID K. RANDALL

Stocks are jumping higher after an unexpected drop in new applications for unemployment benefits and higher February sales reports from retailers.

The Labor Department said Thursday that first-time claims for unemployment insurance fell to their lowest level since May 2008. Separately, the Institute of Supply Management reported that hiring by service companies rose to its highest level since April 2006.

Retailers Limited Brands Inc., Macy's and Nordstrom Inc. all reported sales gains.

The Dow Jones industrial average is up 158 points, or 1.3 percent, to 12,225 in midday trading. The S&P 500 is up 17, or 1.3 percent, to 1,326. The Nasdaq composite is up 44, or 1.6 percent, to 2,792.

http://www.businessweek.com/ap/financia ... NSD5G0.htm