Stock open higher on drop in jobless claims

Stocks rose in early trading Wednesday after a batch of economic reports offered some hope that the U.S. economy was improving.

The government said first-time claims for unemployment fell 34,000 to 407,000 in the week ending Nov. 20. That was much better than the 435,000 new claims analysts had expected.

A separate report showed that Americans' incomes rose 0.5 percent last month, slightly better than expected. Their spending rose 0.4 percent, up slightly from September.

On the down side, orders for durable goods dropped 3.3 percent. Economists expected no change. Two more reports are due out later on new home sales and consumer sentiment.

The Dow Jones industrial average rose 90, or 0.82 percent, to 11,126, in morning trading.

The Standard&Poor's 500 index gained 9.8, or 0.83 percent, to 1,190. The Nasdaq composite index rose 30, or 1.22 percent, to 2,525.

European stock markets are mostly higher. The Euro Stoxx 50, which tracks the shares of blue-chip companies in countries that use the euro, rose 0.6 percent.

In corporate news, the world's largest maker of farm equipment reported earnings that beat estimates. Deere&Co. posted a $457.2 million profit in the quarter ending Oct. 31, compared with a loss a year earlier. Tiffany&Co. also reported a rise in profit, fueled by strong sales of jewelry in the U.S. and overseas.

Stocks fell Tuesday after a skirmish between North and South Korea drove investors into Treasurys, gold and other assets considered safe. The Federal Reserve also lowered its forecast for growth through next year.

Stock and bond markets will be closed Thursday for the holiday and stocks will reopen for short sessions on Friday.