Stocks rise as optimism about US economy grows

Stocks rose early today as spending cuts by Italy lifted traders' hopes about Europe's progress toward taming its debt crisis. A flat reading on U.S. inflation sent bond yields lower.

World markets rose today after Italy's lower house of parliament approved an austerity package in hopes of lowering the country's escalating borrowing costs.

The Dow Jones industrial average is up 58 points, or 0.5 percent, at 11,926 in the first half-hour of trading. The Standard & Poor's 500 index is up 8, or 0.7 percent, at 1,224. The Nasdaq composite index is up 22, or 0.9 percent, at 2,563.

The gains were broad. Nine of the 10 industry groups in the S&P 500 index rose, led by industrial and technology companies. Telecommunications was the only sector to fall, by 0.3 percent.