Dow up, jobless claims down

NEW YORK (AP) — Stocks bounded higher early Thursday after banking giant Wells Fargo & Co. issued a surprise profit announcement that was far above analysts' estimates.

The Wells Fargo news offered investors some of the best evidence to date that the credit and lending markets are improving.

Wells Fargo shares surged 25 percent and bank stocks led the market's climb. Bank of America Corp. rose 20 percent, while JPMorgan Chase & Co. jumped 12 percent. Citigroup rose 9.3 percent.

Just before noon, the Dow Jones industrial average was up about 155 points hovering near the 8,000, again.

Broader stock indicators also jumped. The Standard & Poor's 500 index rose 25.64, or 3.1 percent, to 850.80, while the Nasdaq composite index rose 51.70, or 3.3 percent, to 1,642.36.

Traders looked past uneven monthly sales reports from retailers and mixed economic news as they pounced on bank stocks.

Wal-Mart Stores Inc. said U.S. same-store sales rose 1.4 percent as consumers continued to hunt for bargains, but the results missed Wall Street expectations. Target Corp.'s sales fell 6.3 percent but the results still beat expectations. Wal-Mart shares fell 4.3 percent, while Target rose 6 percent.

In other economic news, the government said new jobless claims fell more than expected last week, but those continuing to receive unemployment insurance set another record.

The Labor Department said initial jobless claims fell to a seasonally adjusted 654,000, down from a revised 674,000 the previous week. Economists polled by Thomson Reuters expected claims to drop to 660,000.

But the total number of laid-off Americans receiving unemployment rose to 5.84 million, from 5.75 million. That was the most on record dating from 1967 and more than analysts expected.