Stocks rally at open after jobs data

NEW YORK (AP) - Stocks climbed in early trading Thursday after the market got encouraging news on jobs and consumer spending, two of the economy's biggest trouble spots.

The Labor Department said the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week, the lowest level since January. Economists had expected 523,000 new claims.

Initial claims are considered a gauge of the pace of layoffs and an indication of employers' willingness to hire new workers. The report offered investors fresh hope that the government's monthly report on employment Friday may come in better than expected. Economists expect the unemployment rate to have risen to 9.9 percent in October.

Meanwhile, retailers posted their second consecutive gain in sales in October after more than a year of declines, proving that consumers are starting to spend a little more.

Technology stocks led the market's gains after an upbeat forecast from Cisco Systems Inc. The technology giant said late Wednesday that it expects revenue to grow for the first time in a year during the period ending in January.

The Dow Jones industrial average surged 127.49, or 1.3 percent, to 9,929.63. The Standard & Poor's 500 index rose 12.37, or 1.2 percent, to 1,058.87, while the Nasdaq composite index rose 32.80, or 1.6 percent, to 2,088.32.