Stocks surged Thursday, with the Dow rising 214 points, as investors welcomed a surprising decline in weekly U.S. jobless claims, stronger-than-expected May retail sales, and a big merger in the telecommunications sector. Stocks rose modestly at the beginning of the session but accelerated in the afternoon due to the economic and company news and a typical rebound following several losing sessions. In economic news, jobless claims fell last week, giving investors hope that the U.S. economy can avoid a recession. A report from the Mortgage Bankers' Association showed that the number of homes in foreclosure surpassed 1 million in the first quarter, a record high. Light sweet crude oil for July delivery rose $5.49—the biggest single-day price gain since 1983—to $127.79 a barrel on the New York Mercantile Exchange, after having fallen for the past few sessions. The U.S. dollar fell versus the euro after rising for the past few sessions. The dollar gained versus the yen. The Dow Jones industrial average rose 213.97, or 1.7 percent, to 12,604.45. Twenty-six of the index's 30 components gained, including Chevron and Exxon Mobil, which rose due to the increase in oil prices. Shares of Verizon rose 5 percent after the company said it is buying rural wireless carrier Alltel for $28.1 billion in a deal that will create the biggest U.S. wireless carrier. The broader Standard & Poor's 500 index rose 26.85, or 1.95 percent, to 1,404.05. The technology-heavy Nasdaq composite index rose 46.80, or 1.9 percent, to 2,549.94. The New York Stock Exchange composite index rose 195.72 to 9,408.48. The American Stock Exchange composite index rose 37.22 to 2,368.64. And the Russell 2000 index rose 19.55 to 763.26.
