Jump in retail holiday sales boosts stock market

NEW YORK (AP) — Signs that the retail and housing markets are improving encouraged traders to extend a stock rally into a second day today.

Major retailers reported sales in November that were stronger than analysts expected. Increased spending during the holiday season would be a strong signal that consumers are feeling more confident.

"Any sign that the consumer is doing better means that the economy will be doing better," said Drew Matus, a senior economist at UBS.

Costco Wholesale Corp., Target Corp. and Limited Brands Inc. all beat Wall Street sales forecasts. Teen retailer Abercrombie & Fitch Co. jumped 10.5 percent after reporting that its sales soared 32 percent.