Stocks Rise for Fourth Day in a Row

(page 3 of 4)

Initial jobless claims fell 14,000 to 529,000 in the week ended November 22, from 543,000 in the prior week. The data was slightly better than the 531,000 reading that markets had expected. The 4-week moving average moved up to 518,000 from 507,000 . Continuing claims fell 54,000 to 3,962,000 in the week ended November 15, from 4,016,000 previously. Though still high, the data was a bit better than expected.

China's central bank slashed its key lending rate 108 basis points -- the most in 11 years -- to 5.58%, giving support to a 4 trillion yuan ($586 billion) spending plan aimed at sustaining growth in the world's fourth-largest economy, according to wire-service reports.

"Given the dire outlook for global demand, as well as a significant ongoing adjustment in China's property market, China's growth prospects look increasingly questionable," wrote Daiwa Securities economist Chris Scicluna in a note Wednesday.

Reuters reports European Commission chief Jose Manuel Barroso proposed an EU-wide fiscal stimulus package worth 200 billion euros ($260 billion) to revive the struggling economies of the 27-nation group, EU sources said. The proposal, put forward by Barroso for approval at a closed-door Commission meeting, amounts to 1.5% of the bloc's gross domestic product (GDP) -- bigger than the 130- billion-euro injection suggested by Germany last week. It is to be made up of 1.2 percentage points of budget spending and 0.3 percentage points of European Union funding, one source said. The numbers had not yet been approved by the 27 Commissioners and could still change. European Central Bank President Jean-Claude Trichet said Wednesday the bank could cut its main interest rate next week as long as there is evidence that inflation pressures have eased.

Britain's economy shrank in the third quarter at its fastest rate since 1990 as household spending fell by its biggest amount in more than a decade, official data showed. The Office for National Statistics confirmed the economy contracted by 0.5% in the third quarter period compared with the previous quarter, leaving the annual rate of growth at 0.3%, the weakest since 1992.

In other U.S. markets Wednesday, the 10-year Treasury note was higher in price at 106-19/32 for a yield of 1.98%, while the 30-year bond was higher at 117-26/32 for a yield of 3.52%.

January West Texas Intermediate crude oil futures were higher at $54.43 per barrel.

December gold futures were lower at $816.50 per ounce.