Stocks jump after China shows confidence in Europe

NEW YORK (AP) — Stocks surged today after China reassured investors it doesn't plan to sell any of the European debt it holds.

The Dow Jones industrial average rose about 150 points in morning trading, while Treasury prices tumbled as traders pumped money into stocks.

China's confidence in Europe overshadowed disappointing reports about the U.S. economy. The Labor Department said initial claims for unemployment benefits fell last week, but not by as much as economists had forecast.

A report on gross domestic product indicated that the U.S. economy did not grow as fast in the first quarter as previously thought.

Today's gains came after the agency that manages China's $2.5 trillion in foreign reserves denied a Financial Times report that China was considering cutting its exposure to European debt. Major indexes around the world also rose.